admin“I don’t necessarily agree with the panel’s view, but admittedly, returns in Nigeria have been astronomical and it continues to be one of the fastest growing markets,” he told I-Net Bridge/BusinessLIVE in a telephone interview.
He added that Nigeria’s population stood at 150 million people out of which 40 percent was seen as economically active.
“Nigeria is the fastest growing market in the world for players such as MTN and the country’s growth is upwards of six per cent,” he stressed.
Jimerson added that some economists had already predicted that Nigeria would soon take over from South Africa as the largest economy on the continent.
“South Africa is seen as being over-invested for private equity as you have institutions like Actis and Brait and other big guys — so this may be true for the high-end market. For example, if you are trying to buy one of
Anglo’s subsidiaries, you are going to compete against a lot of other guys.”
He explained that there was a perception that there was “too much money” in South Africa.
“Look at institutions, such as the PIC (Public Investment Corporation) — we often hear in the media that they are investing R2 billion a quarter in infrastructure — for them it’s not a question of money.”
However, Jimerson said some African countries had a weakness when it came to accessing resources — whether human, capital or technology resources.
“South Africa, compared to the rest of the continent, has these things in abundance and the best-trained personnel in Africa are to be found in South Africa — that is an advantage for this country.
“You go to Nigeria and some of the infrastructure — power, water — don’t work half of the time and it might be difficult getting funding and skilled personnel.
“However, there is tremendous opportunity in Nigeria, because whatever you are selling, you are selling to 150 million people.
“Look at it this way — there are more billionaires in Nigeria than in any other country on the continent, including South Africa.”
He added that if one wanted to start a housing finance bank in South Africa, one would have loads of competitors.
“But in Nigeria, you would only have around two competitors.”
Jimerson added that China is now regarded as over-invested and Africa, in general, under-invested.
“Investors in private equity funds will be the first to tell you that.”
Other African countries with investment potential included Kenya, Jimerson said.
“It’s the largest most sophisticated market in East Africa and it has a blend of what both South Africa and Nigeria have.”
It also had a good market size of around 60 million people as well as the large port of Mombasa. — The Nation.
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