With an infrastructure gap estimated to hit $878 billion by 2040 coupled with an economy projected to grow to over $650 billion by 2022, Nigeria’s medium to long term prospects look optimistic and the country will attract more investments, the Founder/ Group CEO, Quantum Global Group, Jean-Claude Bastos De Morais, has predicted.
Bastos De Morais made this prediction in an interview published in the current edition of the financial magazine, “Banker Africa”.
He stated that the estimate of Nigeria’s infrastructure gap by 2040 is based on forecasts of an annual Gross Domestic Product (GDP) increase of 4.1 per cent and a population that is rising by 2.4 per cent per year at current trends.
He stated that infrastructure has been and continues to be one of the most attractive segments for investments in Africa, adding that right across the continent, roads, airports, dams, ports, railways and telecommunications networks have been coming to life and giving significant logistical capabilities to African economies.
Bastos De Morais, whose firm has a net equity of $3billion, disclosed that the Group has a dedicated $1.1 billion infrastructure fund targeted at investments in greenfield and brownfield infrastructure and industrial base assets across Sub Saharan Africa.
He said: “Despite the current global volatility, Africa remains one of the most exciting markets to invest in due to its growth potential and young population. We have also seen African Governments putting a special emphasis on diversifying away from hydrocarbons and natural resources. Improvements in commodity prices and Africa’s expected economic recovery will drive further investments into the continent, particularly in the Western African region.
“Nigeria and Angola will benefit from The Organisation for Economic Co-operation and Development (OECD’s) forecasts of around $58- $60 per barrel in 2018, easing public expenditure pressures. Private Equity investors and other State players such as China will also benefit from a potential uptick in public sector spending on important infrastructure works and we may see greater appetite for PPP’s and general private capital in government-led projects.”
Citing Quantum Global Research Lab, he pointed out that Gross Domestic Product (GDP) figures have recovered across most of West Africa in 2017 and are in some cases forecast to surge in 2018, noting that improvements in commodity prices and the region’s expected economic recovery will drive further investments into the Western African region.