Only 10 percent of jobs in Africa are in Manufacturing. One of the major bottlenecks is electricity. John Rice President & CEO Global Growth and operations for GE, says that that we cannot have sustainable or inclusive economy without jobs. There is a complex transfer function that leads to inclusive economic growth. It starts with healthcare, electricity and water – leading to precise educational plans.
These limitations have significant constraints on the Capital markets in Nigeria, yet the rebasing of Nigeria’s economy has also provided their capital market as the gateway to economic growth.
Without these Rice says you will not have the appropriate human capital skills to perform in the capital market development, implement and then sustainable phases.
In Nigeria Rice says, in partnership with the Nigerian government, General Electric is a partner to a capacity development facility that will specifically create the right skills for sectors where more skilled people are required. More importantly Rice iterates the value placed in the model on the supply-chain effect.
Paul Kagame, Rwandan President emphasizes that he has a threefold process, namely 1) is healthcare 2) the focus on capacity building of human capital 3) Then a focus on building capacity of insitutions as with the collaboration with Africa Governance Initiative with Tony Blair – underscoring the importance of governance. There issues help link the importance between these elements.
“The capital market is the one big idea that one needs to focus on today to help move us to the next level. You can create wealth through the capital market because companies are listed [and] the business environment is much easier because infrastructure is funded with medium to long-term finance,” said Securities and Exchange Commission (SEC) Nigeria director-general, Arunma Oteh.
Considering the investment in electricity, renewables, advanced oil industry and revised financial sector, it is absolutely appropriate for Nigeria because the continent has been growing at 5 percent over the last decade. Nigeria particularly has been growing at 7 percent. This makes investment through Nigeria’s capital markets one of the highest returns on investment in the world. (Ventures Africa)
