The sectors, according to the experts, that would attract more investments and patrons after the pandemic subsided are Agriculture, Digital payments, health, consumer goods and capitalised financial institutions among others.
This was disclosed by experts during a virtual investors conference organised by EFG-Hermes and attended by Nairametrics.
Head, Frontier research, EFG-Hermes, Kato Mukuru, explained that the sectors will be investors delights post-COVID, as more investments would be attracted to them and they are essential products/services consumers can not do without. He said,
“The good thing about COVID-19 is that it has forced new sectors to come through. More local and foreign investors will be going into food cultivation, processing, storage and distribution to take advantage of the expansion in the industry.”
Mukuru added that Nigeria’s biggest financial institutions would also attract new investments and customers as most lenders are deficient in capital and many will need capital to stabilise after the pandemic.
“There are clients that are looking at very good opportunities and we are discussing with them. I know a local investor who is looking to do hospitals post Covid-19. We have started that dialogue,” he added.
The lockdown introduced by the Federal Government created opportunities for some operators in the digital payment space, as many moved from cash to digital payments.
Also, a crash in the price of crude oil, the nation’s major revenue earner intensified effort by the government to diversify income sources by supporting investments in agriculture and processing industries.
Despite current challenges facing the Frontier Emerging Markets (FEM), Mohamed Ebeid, co-CEO of the Investment Bank at EFG Hermes, explained that changes in the macro picture might create new opportunities for countries, markets and companies.
He said, “We do see the prospect of some relief from immediate pressures, with an easing of FEM portfolio outflows expected as major central banks continuing to implement large expansionary programs.
‘We could also see a floor put under commodity price drops as major oil producers solidify their commitment to large output cuts. Investors and executives will nevertheless have to navigate a changed landscape, where previously more-or-less hidden structural trends come to the fore and accelerate.”
Ebeid added that the main objective of the Virtual Investor Conference was to provide participants with first-hand insights from key international players, spurring further investment in FEMs.