Search

 

Cablegate: Nigeria: Opic Supported Investment Funds in The

VZCZCXRO4116
PP RUEHMA RUEHPA
DE RUEHOS #0147 1130557
ZNR UUUUU ZZH
P 220557Z APR 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC PRIORITY 9870
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9586
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS LAGOS 000147

SIPDIS

SIPDIS

DEPT PASS TO OPIC FOR APATEL, BPEARCE

E.O. 12958: N/A
TAGS: EINV ECON NI
SUBJECT: NIGERIA: OPIC SUPPORTED INVESTMENT FUNDS IN THE
REGION: GEF AFRICAN CONSUMER FUND

REF: A. STATE 27714

B. LAGOS 549
C. LAGOS 99

1. Summary: The objectives of OPIC,s supported GEF African
Consumer Fund are compatible with the Government of Nigeria's
desire for more and longer-term equity investment in private
companies operating in sectors that do not traditionally
receive funds. More private equity funds are needed for
investment in companies operating outside the financial,
infrastructure, energy, housing, and telecom sectors because
these other sectors have limited and short-term local funding
sources. Mission Nigeria encourages OPIC to support GE
African Consumer Fund. End Summary.

2. The Central Bank of Nigeria (CBN) had mandated that ten
percent of all private equity funds must be invested in small
and medium size enterprises (SMEs); however the CBN recently
discontinued this requirement. As a result, some banks have
pooled funds that had been set aside to fulfill this mandate
into a common fund called the Small and Medium Enterprise
Equity Investment Scheme (SMEEIS). Early in March 2008, the
Bankers' Committee, made up of the 24 consolidated banks,
replaced SMEEIS with the new Micro Credit Fund (MCF) and put
the unused funds from the SMEEIS into the MCF.

3. To ensure a flow of credit to SMEs, banks also have the
option to contribute five percent of their before-tax profit
to a pooled fund created to support microfinance banks. In
addition to the SME equity schemes organized by banks, four
well-known major private equity funds currently operate in
Nigeria. One of the firms, Capital Alliance (CA), has
established a management team to vet SMEs' readiness for
equity investment and when necessary to assist SMEs fine-tune
their operations to qualify for CA's funds.

4. Comment: As it stands, Nigeria's private equity market is
fledging, and more private equity funds are needed for
investment in companies operating outside the financial,
infrastructure, energy, housing, and telecom sectors (reftels
B and C) because these other sectors have limited and
short-term local funding sources. Mission Nigeria encourages
OPIC to support GE African Consumer Fund. End Comment.

5. This cable was cleared with Embassy Abuja.
BLAIR

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC