Nigeria Economic Research Highlights

Nigeria Economic Research & Views

How agri-tech start-ups are driving investment in emerging markets

Even as global funding levels drop, agri-tech start-ups remain a key driver of investment in emerging markets as they work to make farming greener, more productive and more climate resilient. Global investment in agri-tech start-ups totalled $10.6bn in 2022, down 13% from 2021 – a record funding year for global start-ups – but ahead of the 2020 figure of $7bn. This matched a general downwards trend in venture capital activity, as investors became more cautious amid global headwinds and deepening fears of recession...

Shifting oil market creates export opportunities for emerging markets producers

With EU bans on Russian oil and oil-product exports set to go into effect this year in response to Russia’s ongoing war in Ukraine, emerging market producers are poised to gain larger shares of an evolving market. EU bans against Russian oil products such as diesel were rolled out earlier this month, following bans on Russian seaborne crude oil exports that began last December. Last week, Patrick Pouyanné, CEO of France’s TotalEnergies, said that there is...

African start-ups were a bright spot in the global funding ecosystem in 2022

As rising borrowing costs and recession concerns weighed on global venture capital investment in 2022, Africa’s start-up ecosystem attracted record funding. While most regions experienced double-digit declines in start-up funding last year, Africa posted gains in total investment volume, deals and number of investors. Start-up funding on the continent grew by roughly 5% in 2022, compared to a decline of 62% in Latin America and 39% in Asia Pacific. Globally, venture capital funding was down 35% at $445bn, albeit still well...

Nigeria targets agro-processing as a future growth driver

As Nigeria looks to restructure its economy to be more diversified and sustainable, agro-processing is emerging as a key tool to improve agricultural value added while also bolstering the sector’s status as a driver of economic growth. As in many African countries, agriculture has long been an important part of Nigeria’s economy – not only in terms of food production, but also in terms of its economic impact and contribution to the overall workforce. However, the discovery of oil in the 1950s and the subsequent development...

The role of industrial zones in SME growth in emerging markets

As governments across Africa look to bolster the economic potential of small and medium-sized enterprises (SMEs), industrial parks and special economic zones (SEZs) are emerging as key enablers of their development. SMEs are the backbone of the global economy, particularly in emerging markets, where they make up 90% of all businesses and create 50% of all jobs. The impact is higher in Africa, where SMEs employ around 80% of the continent’s workforce. But while SMEs are a major economic driver, there is also significant room for...

How fintechs are revolutionising remittances in emerging markets

A number of remittance-focused financial technology (fintech) start-ups are gaining traction in emerging markets. In doing so, they are making inroads on market share that was formerly the preserve of established providers. Remittances have grown in importance in recent decades, to the point where they now constitute the largest source of foreign income for many developing economies. Remittance flows tend to be more stable than broader capital flows. They also tend to be countercyclical, increasing during downturns or...

Why the moment for investing in Africa is now?

On March 17th 2021, the webinar “Why Invest in Africa Now? - The Africa Advantage” event, organized by the Dubai Chamber of Commerce and Industry took place. Looking to increase awareness about FDI opportunities in Africa, especially targeting investors from the UAE, this webinar had among its speakers Bernardo Bruzzone, Oxford Business Group´s Regional Editor for Africa. M. Bruzzone made a presentation about Investing in Sub-Saharan Africa, highlighting opportunities in the Infrastructure, Renewable Energies...

Is Nigeria’s start-up ecosystem the key to the country’s coronavirus recovery?

A recent report has highlighted the significant potential of Nigeria’s burgeoning tech start-up scene, but also outlined a series of limitations that need to be addressed for the segment to emerge as a true engine of the country’s recovery from Covid-19. As OBG has explored, Fourth Industrial Revolution technologies have taken root across sub-Saharan Africa, with many states leveraging digital solutions in order to drive their coronavirus recoveries. Nigeria is a frontrunner in this regard. For example, Lagos is home to one of...