Tuesday, August 03, 2021
/ 11:24 AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV
A stable and predictable policy and regulatory environment will attract private capital into Nigeria, unlocking more opportunities and improving socio-economic activities. Yolande Tabo, the Investor Relations Principal, Convergence Partners made this observation while contributing to the conversation around leveraging private capital to support Nigeria's digital economy.
According to her the World Bank in a recent statement said about $100bn in fresh capital is required to bring Sub-Saharan Africa to an acceptable level of digital access by 2030. 75% of the funds would come from private capital.
She also noted that investments in digital infrastructure would unlock opportunities, alleviate poverty, enable access to services, support enterprise development, and enable economic growth in Africa.
The Convergence Partners official said a 10% broadband increase in Africa, would translate to a 2.5% addition to the GDP in the region. The Nigerian telco, sub-sector contributes over 10% to Nigeria's GDP, largely driven by private capital from mobile network operators.
She acknowledged that Nigeria is a strategic market and home to tech talent, with rich demography and a remarkable entrepreneurial spirit.
Discussing further she said, "fixed investments like infrastructure funds require long-term and patient financing, which is why private equity funds provide a good source of support".
She said tech companies like Rack Centre and Ink Digital have benefitted immensely from the investments of the Convergence Partners, through its "Digital Infrastructure Fund".
The Convergence Partner's Digital Infrastructure Fund will invest in accelerating Nigeria's opportunities in leveraging the fourth industrial revolution (4IR), through 5G, the internet of things (IoT), and Data Centers to drive development and socio-economic transformation.
Looking at policy steps she said issues around foreign exchange risks should be managed effectively to incentivize private capital investments into the country.