[size=14pt]Goldman’s Mboweni says Nigeria may be Africa’s new economic ‘Gold Rush’ [/size]
Tuesday, 12 October 2010 01:00

Nigeria will be the next “gold rush” on the continent as investors take advantage of a booming economy, former South African central bank governor, Tito Mboweni, has said. [b]Nigeria’s gross domestic product will overtake South Africa’s in the next three decades, Mboweni, who is now an adviser for Goldman Sachs Group Inc., said in an interview in Johannesburg. Its economy of $169 billion compares with South Africa’s $286 billion, according to World Bank data.

“Nigeria is going to be Africa’s growth story for the next 15 to 20 years,” Mboweni said after returning from a visit to Nigeria’s capital, Abuja, and the commercial hub, Lagos, as part of a delegation from Goldman Sachs. Nigeria is targeting economic growth of 10 percent in the coming years as it boosts spending on power plants and attracts more investment, finance minister, Olusegun Aganga, a former Goldman Sachs executive, said on September 3. The government is preparing to sell its first Eurobond of $500 million this year. Goldman Sachs, which doesn’t have an office in Nigeria, is bidding to advise on the sale of state-owned power-generation and distribution companies, the Bureau of Public Enterprises said on August 31. The government hasn’t said who will manage the Eurobond sale yet. [/b]

Mboweni is also chairman of Nampak Ltd., Africa’s biggest packaging maker, which is benefiting from its business in Nigeria, he said. Nampak manufactures bottles for Guinness beer and cigarette packages in the country. Nigeria has previously failed to convert its oil wealth into economic development. In its latest crisis, Central Bank Governor Sanusi Lamido Sanusi, who took office in June last year, fired the chief executive officers of eight of the 24 commercial lenders and pumped N620 billion ($4 billion) to bail out 10 of them as the industry risked collapse. Sanusi said on September 21 that the economy will probably expand 7.78 percent this year, up from 6.96 percent in 2009.

There are a number of good, young technocrats in Nigeria’s government who will help sort out the “chaos” in the country, Mboweni said. A former labour minister in President Nelson Mandela’s first cabinet in 1994, Mboweni, 51, left the South African Reserve Bank in November after a decade at its helm, declining President Jacob Zuma’s offer to serve a third term. He was named chairman of AngloGold Ashanti Ltd., Africa’s biggest gold producer, on February 24, three weeks after he was appointed to the same position at Nampak.

The Reserve Bank of South Africa is doing a “good job,” Mboweni said. Interest rate increases between June 2006 and June 2008 helped to curb price gains, he said. Inflation has been inside the central bank’s 3 percent to 6 percent target range since February, easing to an annual 3.5 percent in August.

Mboweni was criticised by South African labour unions for not cutting interest rates fast enough in 2009, which they said prolonged the economy’s first recession in 17 years. He lowered the benchmark rate six times to 7 percent between December 2008 and August 2009. His replacement, Gill Marcus, has cut the rate by 1 percentage point since then.

In his new role at Goldman Sachs, Mboweni said he has met with foreign investors, who raised concerns about calls from the youth wing of the ruling African National Congress to nationalise the country’s mines. His response to them is that the “center will hold” in the ANC, he said.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=14324:goldmans-mboweni-says-nigeria-may-be-africas-new-economic-gold-rush-&catid=85:national&Itemid=340

Good things are happening.
Bomb detractors are evil.

thank God for GEJ.
our messiah.

Nigeria’s gross domestic product will overtake South Africa’s in the next three decades, Mboweni, who is now an adviser for Goldman Sachs Group Inc., said in an interview in Johannesburg. Its economy of $169 billion compares with South Africa’s $286 billion, according to World Bank data.

Our GDP can overtake SA's in much less than a decade, if we properly engage the masses, become ideologically driven and sort out our power problems.
There is a lot in the above, from federal structure to educating and interacting with the population; fleshing it out will take pages. But we can literarily explode economically once the right steps are taken.

Beaf:

Our GDP can overtake SA's in much less than a decade, if we properly engage the masses, become ideologically driven and sort out our power problems.
There is a lot in the above, from federal structure to educating and interacting with the population; fleshing it out will take pages. But we can literarily explode economically once the right steps are taken.

MR BEAF WELL SAID

mbulela:

thank God for GEJ.
our messiah.

ROTFLMAO! What has that got to do with GEJ? Nigerians sef . .

Our over population is attracting investors  . . .  let's hope out state of lawlessness doesn't end up driving them all away!  

Beaf:

Our GDP can overtake SA's in much less than a decade, if we properly engage the masses, become ideologically driven and sort out our power problems.
There is a lot in the above, from federal structure to educating and interacting with the population; fleshing it out will take pages. But we can literarily explode economically once the right steps are taken.

True and with the right leadership too. Our problems are not all about lack of electricity. What about security of human lives and properties, what about good roads and accessibility, what about marketability?

Whilst this is welcome news, lest we forget that this was the same case when we had the Oil boom. If you dont manage your affairs properly we are unlikely to see the benefits or feel the impact. Nigeria has been enjoying relative oil boom with high oil prices, how has that interpretted to better services and life for the average Nigerian.

We must not get distracted by this, but first focus on getting the right leadership in place with the vision to maximise the prospective potentials of this new said Economy.

Some might argue that GEJ is not the man

Between halving poverty in 5 years like Ghana is doing http://allafrica.com/stories/201009160905.html
and being Africa's New Economic Gold rush in whatever years. . . . . .

I know which one i'd pick.

I LOVE GJ !!!

You guys have forgotten the kind of self centered leaders you have, the bad eggs among them will always be out to frustrate the effort of the young and dynamic technocrats, the above statement is not automatic, we need to play our own role.

Beaf:

[size=14pt]Goldman’s Mboweni says Nigeria may be Africa’s new economic ‘Gold Rush’ [/size]
Tuesday, 12 October 2010 01:00


“Nigeria is going to be Africa’s growth story for the next 15 to 20 years,” Mboweni said after returning from a visit to Nigeria’s capital, Abuja, and the commercial hub, Lagos, as part of a delegation from Goldman Sachs. Nigeria is targeting economic growth of 10 percent in the coming years as it boosts spending on power plants and attracts more investment, finance minister, Olusegun Aganga, a former Goldman Sachs executive, said on September 3. The government is preparing to sell its first Eurobond of $500 million this year. Goldman Sachs, which doesn’t have an office in Nigeria, is bidding to advise on the sale of state-owned power-generation and distribution companies, the Bureau of Public Enterprises said on August 31. The government hasn’t said who will manage the Eurobond sale yet. [/b] . . . .



http://www.businessdayonline.com/index.php?option=com_content&view=article&id=14324:goldmans-mboweni-says-nigeria-may-be-africas-new-economic-gold-rush-&catid=85:national&Itemid=340

It will be great if Goldman Sach's offers the country the advise (as they have proposed), wishes the country well, bids Nigeria farewell and just hopes for the best for her (Nigeria). Question is, will they and other multinationals do as they initially propose?! ! !

tell us something new

nigeria has always had 'potential' , its turning it into wealth where we get it wrong

Mboweni is also chairman of Nampak Ltd., Africa’s biggest packaging maker, which is benefiting from its business in Nigeria, he said. Nampak manufactures bottles for Guinness beer and cigarette packages in the country. Nigeria has previously failed to convert its oil wealth into economic development. In its latest crisis, Central Bank Governor Sanusi Lamido Sanusi, who took office in June last year, fired the chief executive officers of eight of the 24 commercial lenders and pumped N620 billion ($4 billion) to bail out 10 of them as the industry risked collapse. Sanusi said on September 21 that the economy will probably expand 7.78 percent this year, up from 6.96 percent in 2009.

beaf who had nothing but invective for thet bloody sharia banker with firing squad wet dreams has been strangely silent , eben as he handily credits the mans achievements (AMCON) to the messiah

Ujujoan:

ROTFLMAO! What has that got to do with GEJ? Nigerians sef . .

Our over population is attracting investors  . . .  let's hope out state of lawlessness doesn't end up driving them all away!  

dude is being sarcastic na. you should know the op is basically tying the comments in the thread to the greatest thing since sliced bread, presido extraordinaire GEJ the man who sweeps HOT 234next chicks off their feet with a single glance , the hero who foiled the independence bomb blast singelhandedly, and who has already saved nigeria

oyb:

tell us something new

nigeria has always had 'potential' , its turning it into wealth where we get it wrong

beaf who had nothing but invective for thet bloody sharia banker with firing squad wet dreams has been strangely silent , eben as he handily credits the mans achievements (AMCON) to the messiah

dude is being sarcastic na. you should know the op is basically tying the comments in the thread to the greatest thing since sliced bread, presido extraordinaire GEJ the man who sweeps HOT 234next chicks off their feet with a single glance , the hero who foiled the independence bomb blast singelhandedly, and who has already saved nigeria

I believe the average !diot can see who started the thread. Go take your medication.

Nigeria can overtake SA in less than 10 years?

What a joke.

People need to start learning that one of the most influential cores of change is the installation of a new operational culture (mentality).

It would take more than a generation for the fcked mentality of Nigerians to change (and an accompanying change in the retarded people occupying the power class) before such immense acceleration can take place.

A country where a powerful woman from a millionaire family still wants to steal more than the national health budget is going to be able to change in less than 10 years?

F me Lawd!!!

I happen to have met Mr Mboweni twice since staying in SA. He is a very intelligent and humble man. He and former minister of finance Trevor Manuel helped boost SA’s economy during their years in office. I do believe that the man is making sense with what he has said but it won’t come easy. If Nigeria is to overtake SA economically, the government has to work very hard. SA and Nigeria are not in the same league. You need to have visited SA to know that it is way superior to any African country in many ways. All we need in Nigeria is a good leader, unfortunately we don’t have that yet so I find it difficult to see how Nigeria can overtake SA. Modern day Nigeria is built on a system that is severely plagued with corruption. I mean if you have bullet deserving thieves like Cecilia Ibru living la Vida loca in a hotel/hospital instead of a kirikiri dungeon how can Nigeria ever move forward. There is no discipline in our government talk less of the private sector.

^^ Fact.

I recall a saying by Lee kuan Yew, the founding father of modern Singapore, widely aclaimed for transforming Singapore into the financial and industrial powerhouse that it is today, that more than economics, more than politics, a nations faith is determined by it's culture.

Couldn't agree more.


Cultural transformation, rebirth is long overdue. Unless drastic measures are put in place today to genuinely confront excessive public / private sector curruption and waste, even an exponential growth in national revenues is unlikely to have the desired effect, resulting in a net "near zero" benefit to the overal economy.

omojand:

^^ Fact.

I recall a saying by Lee kuan Yew, the founding father of modern Singapore, widely aclaimed for transforming Singapore into the financial and industrial powerhouse that it is today, that more than economics, more than politics, a nations faith is determined by it's culture.

Una see?

Great people think like me.

Just thinking about it.

A country that cannot even have an efficient censor is going to accelerate efficiently in under 10 years?

How are the going to plan for public amenities? How will private business be able to operate optimally?

Fck me Lawd!!!

Nigerians who live abroad doesnt want any good thing to happen in Nigeria, they criticise and argue blindly on every issue that bothers on development. Why? If IMF says Nigeria's economy is the fastest growing in Africa, they are the first to say it is a lie, but when any bad thing happen abroad, they are the first to wish it happen in Nigeria. Why cant they just leave Nigeria and Nigerians alone to bear the sufferings by themselves?

Morons should not have a right to talk on NairaLand.

playmode:

I happen to have met Mr Mboweni twice since staying in SA. He is a very intelligent and humble man. He and former minister of finance Trevor Manuel helped boost SA’s economy during their years in office. I do believe that the man is making sense with what he has said but it won’t come easy. If Nigeria is to overtake SA economically, the government has to work very hard. SA and Nigeria are not in the same league. You need to have visited SA to know that it is way superior to any African country in many ways. All we need in Nigeria is a good leader, unfortunately we don’t have that yet so I find it difficult to see how Nigeria can overtake SA. Modern day Nigeria is built on a system that is severely plagued with corruption. I mean if you have bullet deserving thieves like Cecilia Ibru living la Vida loca in a hotel/hospital instead of a kirikiri dungeon how can Nigeria ever move forward. There is no discipline in our government talk less of the private sector.

No corruption in South Africa?

Take away the white man, will you still say what u said about superiority?

So, because you have met this man, thats the only reason we should beleive what he said?

Crime wise, between SA and Nigeria, which one takes first grade? u can talk about corruption but not about crime in South Africa.

LouisThoru:

Nigerians who live abroad doesnt want any good thing to happen in Nigeria, they criticise and argue blindly on every issue that bothers on development. Why? If IMF says Nigeria's economy is the fastest growing in Africa, they are the first to say it is a lie, but when any bad thing happen abroad, they are the first to wish it happen in Nigeria. Why cant they just leave Nigeria and Nigerians alone to bear the sufferings by themselves?

Morons should not have a right to talk on NairaLand.

You are retarded!!!

Conjecture-throwing slowpoke!

Who said anything about or against fastest growth?

What the f do you know about development?

Let me hear you.

Call me a cynic, but Mboweni's positive comments might simply be aimed at currying government business from Nigeria, with a consequent fat bonus for Mboweni as a result. All this is happening because an ex Goldman Sachs employee works for the government and will likely swing the deal Sach's way.

Government 'aiming' for growth is nothing new and cannot be the reason for such optimism, they've been 'aiming' for decades with no results on the ground. . . the 'young technocrats' (i.e Aganga) aren't even certain of being retained after the elections next year so again hoping on them to achieve growth is unrealistic.

PS - Saga stop responding to Louis Thoru. . . .he is the latest reincarnation of Tumfulu the class idiot.

I have no problem with Nigeria's growing population.

debosky:

Call me a cynic, but Mboweni's positive comments might simply be aimed at currying government business from Nigeria, with a consequent fat bonus for Mboweni as a result. All this is happening because an ex Goldman Sachs employee works for the government and will likely swing the deal Sach's way.

Government 'aiming' for growth is nothing new and cannot be the reason for such optimism, they've been 'aiming' for decades with no results on the ground. . . the 'young technocrats' (i.e Aganga) aren't even certain of being retained after the elections next year so again hoping on them to achieve growth is unrealistic.

PS - Saga stop responding to Louis Thoru. . . .he is the latest reincarnation of Tumfulu the class .

We need to state infusing techniques for critical thinking in Nigeria's educational system.

It is just glaringly lacking when discussing with Nigerians that are not naturally intelligent.

Nigerians who live abroad doesnt want any good thing to happen in Nigeria, they criticise and argue blindly on every issue

This statement is at best unqualified and mis-informed. We must learn to be measured in our communication and avoid such blanket generalizations.

I reside abroad (and doing fantastically well by the way). However, nothing will please me more than seeing my country transformed into a stable, progressive entity. We all stand to benefit - directly or indirectly - from a prosperous, stable Nigeria.

Abeg somebody should get me paddy Lo, olodo people don hijack this thread.

Saga please take am slow slow on the guy, though you are a bit harsh on him, i still think you are right in this argument, but try to respect people , retarded can make a tamed animal go wild.
slow slow

^^^ I don hear.

It is quite irritating to see people chatting crap coming to insult one when you are actually giving them education they should be grateful for.

I am giving quality opinions for free, when I should be paid like famous speech-makers like Tony Blair and Bill Clinton.

For what its worth, i really hope 9jer's development occurs a lot quicker than anticipated, for SA to get a good challenge locally. That way whatever political party that will be running the SA governmet will be exposed and learn to be more competitive than maintain the status quo.

We all know that when one is at the top, alone, it doesnt really show their agility and the real stuff they are made of until somebody comes to smacks them down.

For me this would be a great thing indeed' SA needs to move forward and past this never ending racial war, and maybe begin a healthy and sensible war on economic development with other African nations.

I am obviously not being naive to the fact that real competition and the yardstick is outside the continent. I just think its about time this continent starts talking growth on its own terms.

Call me a dreamer but I am tired of being part of a continent that just cant help itself for ish!

Cultural change will certainly help but I think the main import of Mboweni's statement still holds.

Despite the many shortcomings and our valiant efforts at regressing, it will take a series of catastrophes
to not grow at a useful clip over the next decade.

Knock on wood.

mbulela:

thank God for GEJ.
our messiah.

Thank God for Obasanjo for paying off the crippling $36 Billion foreign debt. GEJ does not even feature in this.