A Nigerian-based economy analyst has outlined what Africa needs to do if it wishes to attract significant levels of external investment.
Speaking at the recent Royal Institution of Chartered Surveyors (RICS) Summit Africa 2019 in Johannesburg. Dr Ayodele Teriba, CEO of Economic Associates, revealed the steps that Africa need to take in order to develop further.
Dr Teriba (pictured) stated: “African countries need to strive for improved levels of liquidity, which is intrinsically linked to growth and stability. Africa needs to effectively run the global liquid race to court investors,”
This years summit was sponsored by Broll Property Group, and boasted a powerful line-up of over 18 influential speakers, attracting more than 250 executives and professionals from within the built environment sector across the continent.
Presenting on the macroeconomic outlook of Sub-Saharan Africa, Dr Teiba believes that liquidity is the “magic bullet” to continue attracting further investment in the continent.
Dr Teriba remarked: “Over the years, Africa’s peers have learnt to grow the economy, deepen domestic liquidity, stabilise exchange rates and deepen external liquidity… It’s time for Africa to learn from other leading economies and boost liquidity levels on the continent,”
However, despite emphasising the need for external and internal liquidity, Dr Teriba is keen to stress that a balance between the two must be struck in order to stability achieve growth, noting: “Africa must ensure that there is adequate international and external liquidity to restore growth and stability and the sequencing of the strategy is vital.”
In his wide-ranging speech, Dr Teiba also urged African governments to “engage the Diaspora” and encourage African’s outside of their home country or the continent, to invest in Africa.
Citing the examples shown by the diaspora embracing China and India, Dr Teriba notes that: “Leading emerging markets have recognised the role of the Diaspora as catalysts of financial globalisation… These governments have Diaspora bonds to attract record levels of private-to-government remittances from non-resident citizens,”
Teriba confesses that Nigeria has been one of the countries that he feels have been “left out” of this conversation, stating that in 2006, China and India each attracted US$7 Billion more than Nigeria, while each country “now attracts US$50 billion more than Nigeria,”
Highlighting the importance of the diaspora Dr Teriba acknowledged that: “Nigeria must join the race for massive private-to-government remittances from its non-resident citizens and narrow the gaps between it and China and India,”