info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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Nigeria has surpassed South Africa to become Africa's largest economy. With more than 200 million people, it is the largest market on the African continent, with a population almost twice the size of Ethiopia (110 million) or Egypt (102 million).
Investment by the United States in Nigeria is also growing, foreign direct investment stock from the United States into Nigeria was $5.8 billion in 2017, up 32.8 percent since 2016. However, a significant chunk of U.S. FDI in Nigeria and the continent goes into the resources sector.
A Chinese-designed smartphone will work on local networks, enjoy long battery life, run the right apps—and come at an affordable price. Despite recent political hiccups, Huawei is the dominant supplier of communications and networking equipment on the continent. Africans benefit from the firm's low-cost vendor financing, ultra-advanced technology, and turnkey service for modern network installations.
Nigeria is famous for its power shortages. With only about 5GW of grid power available (on a good day), it's no surprise that there is an estimated 20GW of captive, backup, and household-level power installed by the private sector.
But this isn't just a risk. It's also a business opportunity.
In 2011, Nigeria privatized the power generation and distribution portions of its electricity industry. Performance is well below expectations so far, thanks to gas supply shortages, below-contract tariffs, and poor cash collection. The opportunity? Most manufacturers run their own captive power plants—and they're investing in advanced gas-fired turbines, high-efficiency production equipment, and renewable energy capacity. Households need prepaid electric meters, energy-efficient appliances, and more cost-effective standby generators.
The continent is becoming a big beneficiary of China's large-scale investment in renewables—which are now vastly cheaper than they were just a decade ago. In Nigeria, solar, wind, and mini-hydro are rapidly filling in the gaps where grid power is unavailable. Local micro- or mini-grids can deliver power to light homes, charge phones, refrigerate medicines, preserve harvested produce, and bring the internet to schools.
African financial-technology entrepreneurs are testing innovative—and potentially disruptive—services. Where regulations allow, entrepreneurs and mobile operators are introducing low-cost mobile payment, investment, insurance, savings, loans, and cross-border money transfer services using the latest technology.
In Nigeria, as elsewhere in Africa, the financial services sector is undergoing a transformation. Mobile money accounts are increasingly popular, led by M-PESA in Kenya. Mobile money has boosted economic activity and brought millions into the financial services sector.
