The Central Bank of Nigeria’s governor Sanusi Lamido Sanusi predicts that sub-Saharan Africa will remain the second-fastest growing region after Asia, but feels the African region can actually catch up to Asia.
He said, “We can catch up with Asia, as the prospect of Africa as the last unexplored territory in the world and the potential of growth remain.”
However, before this can happen, Africa must place effective policies, address the infrastructure deficit, and provide an ideal investor climate.
Sanusi observed that, “If we did the same thing that the Asians, such as the Indonesians and the Malaysians, did and if we did it right, we should be able to repeat the experience.”
He predicts that Nigeria will lead the pack. He said that the West African country is poised to move to the next level with power reforms which will increase growth in manufacturing and processing, as well as its GDP.
INSEAD Knowledge asked Sanusi if the region’s instability is the main driver hindering its growth. Sanusi said that he believed these difficulties provide opportunities for people to venture in.
“I don’t think the reality of Africa is exactly the same as the perception; a lot of that is exaggerated, probably based on incomplete information,” Sanusi said.
“I’ve had many people comment on Africa who’ve never been there. They are making comments based on what they heard many years ago and they have no idea of the amount of changes that have taken place. Go to places like Mozambique, Angola, Botswana, Ghana, Senegal. A lot is happening in terms of governance, democracy, the fight against corruption, reforms. Many people are not aware of the changes in Africa.”
While Sanusi gives great examples of places that are progressing in Africa, he fails to mention Nigeria – the country he predicted to lead the way – in his attempt to thwart opinion of the instability that many African countries have.
Deputy Governor of the Central Bank of Nigeria Tunde Lemo was quoted last September by local news sources as saying that the country had lost about $100 billion to corrupt leaders.
Sanusi sacked five bank chiefs over large non-performing loans last September, and while no additional news has come from the banking fraud, this does not help an investor-friendly climate as Sanusi predicts.