Clive Carpenter is Vice Chairman of the Business

Clive Carpenter is Vice Chairman of the Business Council for Africa in London and is its Nigeria Desk Officer. He lived in Nigeria for many years and, although now based in the UK, travels to Nigeria frequently and is a firm advocate of Nigeria’s many opportunities for trade and investment.

Africa’s time has come and Nigeria, the ‘giant of Africa’, is leading the continent in terms of investment opportunities.

Africa’s population presently stands at around 1 billion and all over the continent there is evidence of economic acceleration. This is being facilitated by a general cessation of armed conflicts, structural reforms, higher prices for natural resources and increasing political stability. This economic growth is coming at a time of unprecedented global financial turbulence. The average growth rate across the continent is around 5% as compared to zero or even negative growth being seen in the UK, Europe and the USA.

Africa is not one country but 53 and they all have different cultures, challenges and opportunities. Among those countries currently offering some of the best investment opportunities is Nigeria, a country blessed with a plethora of raw materials but also a country which is grossly misunderstood and badly misrepresented by the media. Over the next 5 years and beyond, Nigeria is expected to enjoy a period of robust economic expansion, averaging around 7% annual growth.

For potential investors from the UK, the history between Nigeria and the UK is an added bonus – a common language, educational, legal and financial linkages and a large Nigerian diaspora in the UK. It has to be remembered that the UK does not have these links with China or Latin America.

Of course, as with all opportunities there are also risks but they can be managed. You need to know your market – do your homework carefully and get to know those you can trust and those best avoided. Take your time before you make a move. Yes, you will need patience and tenacity. Africa, and Nigeria in particular, is not the UK. Understand and respect the different cultures and do not seek to change what you do not like but accept it whilst adhering to your own values, morals and integrity. Respect and understand the different religions. When it comes to corruption remember that it takes two to tango. Good honest business can be done in Africa and is being done. Corruption is not mandatory and if you are a UK citizen remember the UK Bribery Act!

Investors will need to think about local partners, registration of a local company, legal advice and various other technicalities. But all this is now easily and speedily handled by Nigeria’s Investment Promotion Commission (NIPC) which has a One Stop Investment Centre. They will facilitate the whole investment process for you.

The UK coalition government views Africa as a priority and at the top of its list of countries it is working closely with is Nigeria. Economic growth creation, employment creation and security are receiving particular attention. UK exports to Africa stood at £16 billion in 2011 and Nigeria offers tremendous scope for growth in this area mindful of its rapidly growing middle class with money to spend. UK exports of goods to Nigeria are currently estimated to be worth nearly £1.5 billion and the export of services being for a similar value. With a population exceeding 165 million, higher than any other country in Africa, the opportunities for economic growth can clearly be seen. The agricultural sector will become increasingly important for Nigeria in the next few years as the country seeks to curtail massive food imports which are not sustainable.

Whilst many countries other than the UK are now taking Nigeria seriously the historic links between the UK and Nigeria give the UK a special opportunity. As the late President Yar’Adua stated “The U.K. is Nigeria’s preferred partner”.

In June 2011, British Prime Minister David Cameron visited Nigeria and saw for himself the tremendous opportunities that exist there. As he said “Which country is predicted by some to have the highest average GDP growth in the world over the next 40 years? You might think Brazil, Russia, India or China. No. Think Africa. Think Nigeria.”

The Business Council for Africa (BCA) in London exists to encourage better business in Africa for the benefit of its over 450 members and for the sustainable economic development of the countries concerned. With representatives in over 25 African countries, BCA is there to help you understand Africa’s challenges and to connect you to the right people across the continent. Read all about us at www.bcafrica.co.uk