Mckinsey: Africa Needs $2.6tn Investment in Infrastructure

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The Global Chief Executive Officer, Mckinsey & Company, Dominic Barton, has disclosed that about $2.6 trillion investment was required to bridge Africa’s infrastructure gap, and noted that investors who needed to be relevant should be in Nigeria and other African countries.
 
Barton’s remarks came just as President of the Dangote Group, Alhaji Aliko Dangote said experience had proven that Nigeria’s business environment is conducive for investment, admonishing Nigerians who prefer investing outside to have a rethink.
 
Speaking on the theme “Unlocking Job Creating Growth” at the 24th World Economic Forum on Africa (WEFA) in Abuja yesterday, Barton said Africa’s major challenge was infrastructure which would require about $2.6 trillion investment to address.
 
Barton said addressing the infrastructure problem was driver required for development and inclusive growth, noting that the continent’s resources were far beyond the abundant natural resources.
 
On the huge unemployment rate in Africa, he disclosed that experience across several African countries had shown that much emphasis was placed on theoretical education, pointing out that what was needed was “education for employment”.
He said what should be done was to acquire skills, adding that only about 30 per cent of educated  youths seeking employment were equipped with the requisite skills.
 
Barton also acknowledged that the continent was awash with great entrepreneurs and innovators, advising that a conducive environment where people can start and grow businesses was required in Africa
 
In his remarks, Dangote said it was erroneous for anyone to have the notion that the business environment is not conducive for investment, arguing that if the environment was bad, he would not have succeeded.
 
To underscore his position on Nigeria’s good business environment, Dangote said for somebody like him to have gone into the agricultural sector where he knew nothing about and is succeeding was enough testimony.
 
He stated that Nigeria is replete with immense opportunities, recalling that with a tax holiday of about five years and other incentives in the country, a a determined and focused  investor could not ask for more in the midst of other latent resources waiting to be unlocked.
 
He recalled that when he wanted to go into manufacturing in 1996, interest rate was at about 42 per cent and 90 days money, adding that his group decided to generate its own power, noting that a lot has changed positively in the country since then.
He regretted that some Nigerian investors chose to keep their money outside the country, adding: “We have to invest at home to encourage foreigners to come.”
 
 
Dangote said his group was investing $16 billion in Nigeria in the next four years.
 
Dangote posited that  the growth required in Africa  was the one that will benefit everyone “and not the 5 per cent  growth that is widely reported.”
 
Less than 10 per cent of arable land in Africa, he said was being utilised for agriculture thus leaving room for large cultivable arable land., urging foreign investors to do business in Africa because "there is a lot you can get, Africa is the place to invest with a guaranteed 30 per cent returns on investment."
 
In his opening remarks, Founder and Executive Chairman of the World Economic Forum, Klaus Schwab said the hosting of the 24th WEFA was a demonstration of the global confidence in Nigeria, and noted that “we cannot allow the forces of evil to dictate our agenda.”
 
He the presence of over 1,000 participants from over 70 countries of the world underscored the confidence of the global community in Nigeria irrespective of the challenges, and called for a minute’s silence for the abducted schoolgirls in Borno State and their parents.
 
Schwab said while African economies are growing, the growth should be inclusive to make it sustainable, calling for the devotion of attention on agriculture, health care, good governance as well as good practices
 
At the plenary, the urgency of creating jobs was laid bare as it was disclosed that 112 million workers will enter Africa’s labour force by 2020,  a wake-up call for job creation,
As  huge opportunities exist to create jobs in agri-business, healthcare and infrastructure, Africans were called upon to invest in internally to build confidence among investors.
 
It was also pointed out that building Africa’s human capacity through education, as well as vocational and technical training is key.
 
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