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Unpacking investment strategies for Africa
On the side-lines of the AfDB’s roadshow ahead of its Africa Investment Forum in November, the Head, Infrastructure of the Nigeria Sovereign Investment Authority, Richard Eckrich, talks investment strategies and priority sectors with CNBC Africa’s Christy Cole.
Thu, 12 Jul 2018 09:27:41 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The NSIA focuses on projects with nationwide strategic impact, foreign and local capital attraction, and conducive legal environments, emphasizing sectors like Agriculture, Healthcare, Power, and Motorways.
- Despite the availability of capital, the challenge lies in the upfront work required to develop projects into bankable states, necessitating patience and active involvement from investors.
- Recent highlights from the NSIA include successful closures on healthcare and agriculture projects, showcasing the organization's commitment to impactful and sustainable investments in Nigeria.
The Africa Investment Forum is poised to bring together project sponsors, capital providers, and sector players to exchange ideas and information. Richard Eckrich, the Head of Infrastructure at the Nigeria Sovereign Investment Authority (NSIA), emphasized the importance of efficient information flow in the market and highlighted the opportunities in Nigeria. Speaking with CNBC Africa's Christy Cole, Eckrich discussed the NSIA's investment strategies, focusing on projects with nationwide strategic impact, foreign and local capital attraction, attractive commercial and social returns, and conducive legal and regulatory environments.
Eckrich clarified that the NSIA's Nigeria Infrastructure Fund has always been invested in Nigeria, with a consistent focus on sectors that align with their criteria. Presently managing $2.15 billion of Nigeria's fund, the NSIA has honed in on priority sectors such as Agriculture, Healthcare, Power, and Motorways. Despite the availability of capital from various sources including local and international investors, commercial banks, and development banks, the real challenge lies in the upfront work necessary to develop a project into a bankable state.
Acknowledging that project development is a time-consuming process, Eckrich emphasized the need for patience and active involvement in investing in Nigeria. He pointed out that while projects may take longer than desired due to the nature of development, the market offers substantial opportunities for investors who are willing to engage actively and demonstrate patience.
When questioned about specific projects, Eckrich highlighted recent healthcare and agriculture investments. The NSIA has successfully closed deals on three healthcare projects, including diagnostic centers and a radiotherapy cancer treatment center. These projects, initiated with partners from inception, showcase the NSIA's commitment to impactful investments. Additionally, the NSIA has made significant agriculture investments in collaboration with partners and local sponsors, with more ventures on the horizon.
In conclusion, Richard Eckrich reiterated the NSIA's dedication to driving strategic investments in key sectors that have a meaningful impact on Nigeria's development. The emphasis on Agriculture, Healthcare, Power, and Motorways reflects the NSIA's commitment to fostering sustainable growth and creating opportunities for both local and foreign investors in Africa's largest economy.
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