The reported death of Abubakar Shekau, the leader of the Boko Haram insurgency, is making foreign investors look favourably towards investing in Nigeria. Such investors are said to be frustrated by the low level of profit they are currently making from the BRIC nations of Brazil, India, Russia and China, authoritative US journal, Forbes, has reported. The report, published in Forbes, yesterday, said success in cracking down on security threats in the Niger Delta is also changing the security situation for the better. And while terrorist disruption recedes, money keeps flowing into Nigeria. vanguardngr/2013/08/shekaus- death-excites-bric-investors/ The original Forbes report: With even Goldman Sachs turning cold on the core emerging markets basket of Brazil, India, Russia and China, investors are combing the world looking for a place to put their money to work. For this new generation of adventurers, the goal is to be on the ground in the right new market before it becomes the core — and Nigeria just started flashing all the signals. For years, the country – the biggest and most dynamic frontier economy in Africa, with a GDP on par with global capital destinations like Hong Kong and Singapore – had a Wild West reputation for both rambunctious growth and a little danger. But while the entrepreneurial energy of Lagos still reminds fund managers of Houston multiplied by four times the population, success in cracking down on security threats in the oil-rich interior is changing the security situation for the better. Monday’s reports that government forces may have killed Abubakar Shekau, the leader of the Boko Haram insurgency, mean the rewards here may now substantially outweigh the risks. As Nigerian Senate President David Mark told me, security is a critical factor for the current administration and extremist groups like Boko Haram have already been pushed to the country’s borders. However, many investors still have an outdated conception of Nigeria as a dangerous market engulfed by unrest and corruption, and so stocks in Lagos still trade at something of a distress discount to reflect the country’s past – and create an opportunity for investors willing to understand what the Nigeria of today is really all about. Massive growth, dramatic value forbes/sites/ hilarykramer/2013/08/21/nigeria-beckons- investors-fleeing-the-bric/
Posted on: Fri, 23 Aug 2013 16:46:43 +0000
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