African capital markets and investment landscape are quite bullish for investors; greater returns of 30 percent dividends or even more on average investment have been chronicled. With this rosy development, African capital markets have been noticed by many money managers and portfolio strategists around the world.
Investors have become increasingly attracted to Africa as it has begun to demonstrate strong economic growth, an emerging middle class, greater political stability and improved government balance sheets. The total value of deals in Africa by investors has tripled to US$183 billion in the past decade, with deal volumes up 109 percent.
The Nigerian Stock Exchange (NSE) is without exception; its returns have been phenomenal particularly since the strategic intervention of Aliko Dangote.
It has been over a year since the council of 15 members of the NSE unanimously elected Dangote as president of the stock exchange. Under the direction of the billionaire entrepreneur, bullish Nigerian stocks are attracting more investment both local and foreign; Nigerian Stock Exchange capitalization has appreciated by N5.183 trillion (US$32.3 billion), from N6.712 trillion (US$41.8 billion) to N11.895 trillion (US$74.1 billion).
“No other Nigerian has done more than Aliko Dangote for entrenchment, consolidation and promotion of capitalism, market economy and free enterprise particularly in Nigeria and Africa in general. The great thing about Dangote is his commitment to Nigeria and Africa. Most of his investments are in Africa and with that he has shown that Nigeria and other African countries can be lucrative for investments due to large returns from them,” as was noted by Emeka Chiakwelu, Principal Policy Strategist at the Africa Political & Economic Strategic Center.
The great leap of capitalization of the stock exchange has been attributed to splendid and great leadership rendered by Dangote. Every investor has gained from the bullish NSE including Dangote that has seen his fortune raised to US$20 billion, when his majority stocks of 93 percent in Dangote Cement appreciated by three-fourths in the first quarter of 2013.
Dangote has invested heavily in Nigeria and Africa at large, he recently pledged to invest a further US$ 15 billion on the continent by 2018, and his charities are working to improve living standards and ameliorate poverty that has engulfed parts of the continent.
For the realization of the African century, Africa will need investors who are willing to seize the numerous business opportunities offered on the continent. Aliko Dangote has led by example, and considering the amount of innovation being churned on the continent, there will be many more in the medium to long term future.
The Africa Political & Economic Strategic Center is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa. More information can be found at the center’s website located at www.afripoll.org.
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