BY Princewill Ekwujuru & Onozure Dania

The Chief Executive Officer of Renaissance Capital, Mr. Stephen Jennings has expressed optimism in the economic growth of the African continent, saying he foresees greater opportunity in Africa than anywhere in the world.

Jennings, who was speaking at the Second Annual Renaissance Capital Pan_ Africa investors conference in Lagos, said, Africa’s economic success and the success right in Nigeria is widely understood amongst global investors, adding that within the next couple of years, he expects that Africa will become one of the most attractive investment destinations globally.

He said that after 20 years of running business for emerging markets, one of the biggest opportunities he saw was to produce high quality capital markets research for the world’s major emerging markets investors.

By breaking down investors deeply held prejudice against Africa, he said, they hope to accelerate their participation in the continent and to build a new business for themselves in the process.

His words, “I see the opportunity in Africa as greater than anywhere else in the world today not because Africa is different, but precisely because it is not a special case.”

“The difference with Africa is simply that the scope for catch up and convergence is greater and is likely to happen more rapidly.”

Jennings further stated that, in 2009 ,despite the massive collapse in virtually all commodity prices across the globe, Africa was the only region of the world that did not record a single quarter of negative growth.

“Just compare the performance that year, of two oil dependent and supposedly hopelessly managed emerging markets. Russia suffered a 7.5 per cent economic collapse and Nigeria achieved a stunning seven per cent growth rate,” he said.

Continuing, he said, “Africa’s macro_economic performance has improved very significantly, between the 1990s and the 2000s inflation has fallen 64 per cent; government debt by 28 per cent and fiscal deficits by 60 per cent.”

Jennings added that the process of accelerating capital flows into Africa will be reinforced by the likely massive, tidal movement of capital from the west to the emerging markets. “Total foreign capital flows into Africa increased from US$15 billion in 2000 to US$87 billion in 2007; more than 20 African countries received at least US$500 each in foreign investment in 2008,” he said.

He explained that the value of fiscal discipline, modest inflation, economic openness and private ownership are no longer in contention, adding that private sector agents have equal conviction in the effectiveness of the basic reform because of the economic transformation that has been seen so many times before around the world.

He said, “Local bankers from Lagos to Nairobi are totally aware of the boom in financial services achieved in countries as disparate as Chile, Poland and China. They fully believe they now have the opportunity to create the same success at home.

“International strategic and financial investors have also seen the economic transformation move before, so it is rapidly becoming conventional and virtually all of the world’s growth is in emerging markets and Africa is the last great frontier. For once, investors’ herd mentality is working in Africa’s favour.”