Significant optimism in Nigeria due to a pledge to invest US$700 million in property and agriculture
Old Mutual Investment group (OMIG) consists of four base businesses; Old Mutual Emerging Markets (OMEM), Old Mutual Wealth (OMW), Nedbank and Old Mutual Asset Management (OMAM), all of which have been changing people’s lives across Africa for the better since 1845.
Following a recent review a few years ago and the resulting commitment to simplify the business, the group has been experiencing a high level of change. Whilst there are a number of synergies between the four base businesses, the recent review established that the separation of the four businesses would not only benefit the shareholders but also improve the overall performance of each business. The separation is expected to be completed by the end of 2018.
Committed to expanding its investments in Africa
In August 2016 the Old Mutual Investment Group (OMIG) confirmed its intention, in partnership with the Nigerian Sovereign Investment Authority (NSIA) to invest US$700 million in Nigeria’s hospitality, retail, commercial and agricultural sectors.
The agreement signed on August 12th, 2016 detailed two separate investments, one in real estate and one in agriculture, with the US$700 million being shared between these two sectors. The commitment states that US$500 million will be invested into the hospitality, retail and commercial sectors, whilst the remaining US$200 million will be spent improving Nigeria’s food security and ensuring that all opportunities to grow the sector are taken, guaranteeing increased rural economic development.
A shared vision
The Old Mutual Investment Group (OMIG) and the Nigerian Sovereign Investment Authority (NSIA) both believe that there are significant opportunities in the real estate and agricultural sectors of Nigeria. Their shared vision includes their commitment to ensuring that they fully capitalize on these investments, in order to be able to ensure the country can deal with the challenges of unemployment, poverty and the continuing growth of its population in coming years.
Diane Radley, the CEO of the Old Mutual Investment Group (OMIG) believes this new partnership with the Nigerian Sovereign Investment Authority (NSIA) is absolutely essential and takes advantage of their shared experience and local knowledge. At the time of signing, she said: “As the largest manager of real assets in Africa, we have a deep belief in the opportunities in agricultural and real estate investment across the African continent. Our dealings with agriculture as an asset class has shown that it has already gained huge momentum globally, but is still in its infancy in Africa. This presents a significant investment opportunity for both local and international investors,”. She later added that, “Together we believe we can add significant value to both our clients as well as the development of the Nigerian economy as we continue to be committed to sustainable, long-term investing.”.