Cablegate: Opic-Supported Investment Funds in the Region:
PP RUEHMA RUEHPA
DE RUEHOS #0099 0731332
ZNR UUUUU ZZH
P 131332Z MAR 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC PRIORITY 9808
INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS LAGOS 000099
STATE PASS OPIC BILL PEARCE
E.O. 12958: N/A
TAGS: EINV ECON NI
SUBJECT: OPIC-SUPPORTED INVESTMENT FUNDS IN THE REGION:
REF: A. STATE 16442
B. LAGOS 76
1. In response to reftel A, financial capital is needed to
meet Nigeria's growing demand for middle income housing.
Although Nigeria's middle-class is relatively small,
affordable housing is in short supply across the country.
Nigerian banks are well capitalized, but housing competes for
funds with a myriad of other infrastructure needs.
Consequently, outside financing will be necessary. Nigeria
is targeting a GDP growth rate of 10 percent per year with
the goal of becoming one of the world's top twenty economies
by 2020. While those are admittedly ambitious goals, the
Government of Nigeria understands the need for private sector
funding to develop its currently inadequate infrastructure.
Nigeria has not yet passed legislation on land reform,
non-judicial foreclosure, or securitization that would
support mortgage development (reftel B). The objectives of
this fund are compatible with the government's desire for
more private sector involvement in funding its development.
2. African Capital Alliance is a well-known Nigerian private
equity fund with an American citizen director who has
extensive experience in Nigeria.
3. Mission Nigeria encourages OPIC to support CAPIC Fund.
4. This cable was cleared with Embassy Abuja