Preliminary results established that the ANC won the election with a reduced majority of 62.16 per cent from 65.9 per cent in 2009.
“The election outcome was predictable, where we are going now depends on what the ANC does with its fifth term and selection of cabinet ministers,” Goldman Sachs’s Colin Coleman told CNBC Africa on the side-lines of WEF Africa in Nigeria’s capital Abuja.
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“Deployment of cabinet ministers will be critical as that will give direction to the implementation of the National Development Plan, dealing twin problems of economic growth on one hand and inequality and poverty on the other hand,” he added.
Coleman also noted that increasing security problems especially in Nigeria was an unfolding drama and that it was of great concern adding that this would be a test of Nigeria’s security establishment to get on top of it.
The Goldman Sachs’s Africa head said positive developments had been experienced in the content.
“Directionally Africa’s overall macro-political stability has improved dramatically with the formation of multiparty democracies and also enjoying economic growth,” noted Coleman.
“The most activity that is going on is trying to finance transactions and companies that are growing bearing in mind that the continent is 15 per cent of the global population but contributes three per cent of the gross domestic product.”
He added that the continent was projected to grow at six per cent over the next 20 years and with that it is going to require huge amounts of equity and debt and financing.
“Unfortunately the equity capital markets only exist in South Africa of size and liquidity, other markets have a huge amount to develop not unlike what China did 30 years ago, so it’s really important for debt and equity market to develop.”
Coleman noted that small and medium companies that are developing faster were in need of financing.
BY TRUST MATSILELE