The dti strategy for Nigeria

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The dti strategy for Nigeria

• Presented by
• Mrs. Hester Obisi
• 18 September 2006

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TABLE OF CONTENTS

• Objectives.
• Intro.
• Challenges
• Econ Overview
• SA trade with West Africa
• Methodologies
• Stakeholders
• Critical Projects.
• Impact Areas/Expected Outputs.

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OBJECTIVES

• Through constant engagement and discussions,
  deepen our understanding of the Nigerian Economy
  and the business climate
• To strengthen economic, cultural and social
  relations with Nigeria,
• To identify opportunities presented by the
  Nigerian economy and develop penetration
  strategies,
• To investigate and negotiate Non Tariff barriers,
• Develop a deliberate export promotion strategy
  for manufactured exports to Nigeria,
• Facilitate capacity building initiatives between
  institutions, government and civil society
  associations in both countries,
• Encourage the development of JV partnerships
  between businesses in both countries,

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OBJECTIVES CONT.

• Explore possibility foe MOUs between regional,
  national and bi-national Chambers,
• Co-hosting of events in both countries,
• Develop a joint consultative forum between the
  two countries consisting of government, business,
  and civil society,
• Develop a SA Nigerian Joint Business Council,
• Attract Nigerian Investment into SA,
• Assist and cooperate with Nigerian society in the
  new industrialization drive

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INTRODUCTION

• West Africa comprises 16 out of the 53 countries
  in Africa.
• Has a population of 245 million (1998)
• West Africas population accounts 2 out of
  every 4 Africans 50 of those living on the
  continent
• Between 1960 and 1995, the population of West
  Africa increased by 130 million people.
• At an average growth rate of 3 per annum, the
  population of West Africa is expected to reach
  430 million in 2020. 40 of the population of
  West Africa lived in urban areas as of 1990 and
  the proportion is growing rapidly
• Poverty incidence in West Africa ranges from
  12.2 in Cote dIvoire to 88.2 in Guinea Bissau
  (using the international extreme poverty
  threshold of US1 a day).
• Strategic countries Nigeria, Ghana, Senegal,
  Cote dIvoire, Guinea, Mali, Niger, Liberia,
  Sierra Leone,etc
• Divide along linguistic line Anglo-,
  Luso-,Francophone

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INTRODUCTION CONT

• Using US2 a day portrays several West African
  countries coming within high poverty bracket
  49.4 in Cote dIvoire to 96.7 in Guinea Bissau,
  with oil-rich Nigeria having 90.8 and 90.6 in
  Mali ( M. Chambas, 2004
• Prolonged military rule in West Africa has
  generated deep-seated political instability
• It has also fanned a growing culture of
  militarism
• Combined with other factors, not least among
  them, deep-seated economic decline and widespread
  youth disaffection, has propelled several
  countries in the sub-region into full-scale war
  (Adebayo Olukoshi, 2001).
• Conflict in the region contribution enormously to
  economic decline.

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INTRODUCTION CONT

• West African countries have demonstrated a
  national capacity and willingness to undertake
  fundamental economic and political reforms
  Ghana, Nigeria, Senegal
• Political liberalization is being pursued with
  emphasis on democracy and the rule of law
• There is commitment on the part of African
  leaders to adopt NEPAD as the framework for
  long-term development
• Regional Institutions ECOWAS and UEMOU(West
  African Monetary Union) promote econ growth
• Duplicating functions
• Regional Integration encounter problems
  political instability, lack of good governance,
  insufficient diversification of national
  economies, absence of reliable infrastructure

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CHALLENGES AND RISKS

• Demographic aspects
• Migratory flows, predominance of youth in the
  society, increasing urban dynamics, balancing of
  settlement areas, educational systems and food
  security, management of pandemics, etc
• Socio Economic Aspects
• Economic Liberalization, economic growth, poverty
  alleviation, attainment of Millennium goals,
  private sectors role, development of regulatory
  framework and micro finance for informal sector,
  access to global markets, regionalization of
  markets, lack of socio economic infrastructure,
  debt burden, impact of overseas development
  assistance, low foreign direct investment, etc
• Socio Cultural Aspects
• Evolution of womens rights and their
  representation in society, access to information,
  changing configuration and the role of the media,
  new information technologies, development of
  African expertise, cultural identity,
• Socio political, institutional and geopolitical
  aspects
• The democratisation process, crises and conflict
  management, new modes of governance, the
  emergence of political parties and civil society
  organizations, strengthening of regional
  institutions,etc.

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ECONOMIC OVERVIEW WEST AFRICA

• Econ growth in WA estimated at 3.8 in 2004 and
  7.2 in 2003.
• Decline was caused by demand side, poor
  performance of primary and service sectors
• Supply side, slowdown in consumption levels.
• Growth in region dependant on agriculture and oil
  industry in Nigeria.
• 2004, Buoyancy noted in transport, tourism and
  communication sectors,
• Stability in macroeconomic management in
  countries.
• Unfavorable market conditions, low prices for raw
  materials, and socio economic conditions led to
  poor performance of states.

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ECONOMIC OVERVIEW WEST AFRICA

• Econ growth in 2004 The Gambia (7.1) Sierra
  Leone (7.2), Senegal (6), Cape Verde (5),
  Ghana (5.2)
• Poorest performance Mali (1.5), Cote dIvoire
  (1), Guinea (2.6) and Togo (2.9)
• Nigeria biggest economy at 57.9 of GDP in West
  Africa.
• Nigeria recorder a growth rate in 2004 and
  contributed 2.27 to WA GDP.
• Share of economy in WA Nigeria (57), Cote
  dIvoire (17), Ghana (14), Senegal (7), and
  others (5)

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• SELECTECT MACRO ECONOMIC INDICATORS

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SA TRADE WITH WEST AFRICA

• South Africa major trade partners in terms of
  exports Nigeria and Ghana (70 of R 5 017443)
  30 others
• Nigeria (45)/ Ghana(25)
• Total Imports into SA Nigeria (76.2) Others
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• SA investment into following sectors
•  Nigeria - Telecommunications, Information
  Technology
• Oil and Gas, Agriculture, etc
• Ghana - Mining, Retail, Infrastructure
• Ivory Coast - Telecommunications,
  Agriculture,etc
• Mali - Mining, Infrastructure, ICT
• Senegal Transport,
• Others Agriculture, Banking services
•              

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SA TRADE WITH WEST AFRICA SWOT

• Strengths
• Ø            Abundant resources
• Ø            Strategic location to major markets
• Ø            Availability of manpower
• Weaknesses
• Ø              Population explosion
• Ø              Lack of skills and know how
• Ø              Urban migration
• Ø              Lack of good governance
• Ø              Weak Institutions
• Ø              Duplication of institutions
• Ø              Lack of policy coherence and
  political commitment
• Ø              Dependence of aid from colonial
  masters
• Ø              Business environment lack of
  compliance to International Best Practice
• Ø              Corruption
• Opportunities
• Ø            Fostering of JV partnerships for
  investment opportunities
• Ø            Development of rural landscape
• Ø            Capacity building for institutions
  and government agencies

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NIGERIA GEOPOLITICS

• Strongest Economy in West Africa
• Religious, cultural and tribal tensions
• Government presence in the economy
• Delegations of power
• Manipulation of information, policies, etc.
• Expose to Energy politics China and America
• Formidable players in peacekeeping efforts in
  Africa
• World interest in natural resources in Nigeria
• Niger Delta tension Vigilantes
• Strong alliances with various economic powers,
  e.g. America and France
• Monopolistic environment

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NIGERIA ECONOMIC INDICATORS

• GDP 174.1 billion (2005 est)
• GDP growth rate - 6.2
• GDP contribution per sector Agri (26.9),
  Industry (48.7), Services (24.4)
• Foreign Direct Investment 21.3 of GDP -
  37.08 billion
• Industrial production rate 3.8
• Oil production 2.451 bpd
• Exports - 52.16
• Export Commodities - petroleum and petroleum
  products, cocoa and rubber
• Export Partners USA (49.2), Brazil (9.5),
  Spain (7.5)

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NIGERIA ECONOMIC INDICATORS

• Imports- 25.95
• Import commodities- machinery, transport
  equipment, etc
• Import partners- China (10.5), US (7.4), UK
  (6.9), France (6)
• Debt- 32.45
• Population- 131 859731 million (July 2006 est)
• Population growth rate- 2.38
• Average 5 children _at_ mother
• Country divided into 36 states
• Cote dIvoire, Benin, Ghana, Senegal, export
  partners in WA
• Zim, DRC, Western Zahara, Uganda, SA, Mali import
  partners in Africa

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NIGERIA REVENUE

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NIGERIA BREAKDOWN OF EXPENDITURE
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NIGERIA BREAKDOWN OF EXPENDITURE
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SA NIGERIA RELATIONSNo 1 import partner in
Africa, No 3 Export partner in Africa
SOUTH AFRICAS TRADE WITH NIGERIA 2003-2005
SOUTH AFRICAS TO 10 EXPORT-IMPORT TO NIGERIA
2005
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STRATEGIC THRUST FOR DTI ENGAGEMENT WITH NIGERIA

• Develop a coordinated comprehensive strategy for
  Economic Cooperation with Nigeria
• Increase SA diplomatic profile in Nigeria
• Encourage and Spearhead the development of an
  African Identity
• Increase trade and economic relations with
  Nigeria
• Increase engagement and involvement in
  peacekeeping in the continent in collaboration
  with Nigeria
• Foster trilateral and multilateral partnerships
  for the development of the region
• Encourage development of energy and mineral
  resources in the region

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STAKEHOLDERS

• Regional Economic Communities.
• Multilateral institutions.
• Development Agencies.
• Civil Society.
• COTTI other units within DTI.
• DTI Counterparts in other countries.
• IRPS Cluster.
• Embassies.
• Industry Associations.
• Export Councils.
• Provincial Economic Agencies.

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STAKEHOLDERS (CONTD)

• SMMEs.
• State Owned Enterprises.
• Nedlac.
• Investment Promotion Agencies.
• NEPAD Secretariat

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INVESTMENT OPPORTUNITIES

• Investment opportunities sectors
• ICT, Infrastructural Development, Agriculture,
  Mining, Banking, Retail, Transport, Various
  Services Education and Training
• Cooperation
• Public Sectors Capacity building, Policy
  formulation,etc
• Private Sector JV partnerships, bilateral
  chambers and association arrangement
• Civil society Human rights, Peace and security

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IMPACT AREAS/EXPECTED OUTPUTS

• Growth Focus Increase market (PTA, FTAs),
  Infrastructure Development.
• Job Creation Inward Outward Investments
  (Nigeria/Cote dIvoire/Ghana), SDI,
• CompetitivenessLegal frameworks, standards
  administration, technology skills transfer
  through FDI.
• Equity (BEE WEE - Geographical spread) all
  technical teams/ business delegations include BEE
  WEE.
• Good Governance Integrated policy development
  processes sharing of experiences

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• I THANK U