Obasanjo Seeks End to Global Food Shortage - Former President, Chief Olusegun Obasanjo, has called for collaboration between governments and investors in Africa to avoid the threatening global food shortage in the continent. Obasanjo made this call, just as the Managing Director and Chief Executive Officer, Assets Management Corporation of Nigeria (AMCON), Mr. Mustapha Chike-Obi, disclosed that the Liquidity Ratio of Nigerian banks currently stands at over 70 per cent, saying that banks now have plenty of money to lend to the economy. Liquidity Ratio measures a firm's ability to meet its short-term financial obligations. They both said this while making their separate presentations at the second annual, "Pan-Africa 1:1 Investor Conference," organised by Renaissance Capital in Lagos Wednesday.

The former President insisted that the looming shortage in the Nigeria and other countries in Africa was a reality, stressing that the situation can be alleviated with adequate investment in agriculture.

Obasanjo whose speech was titled: "It's Time for Africa," informed the gathering of international investors that: "We have over 150 million mouths to feed in Nigeria you can never go wrong if you invest in feeding some of them."

He explained further: "Despite the significant operational challenges and the risk premium investors have to bear, interest among investors remains high. It is now Africa's time! Global executives and investors can no longer afford to ignore the continent's immense potential in every area of business and investment. Thus, with political and social issues properly settled and put behind us, Africa is all set to become the next big investment destination.

"Many Africans are joining the ranks of the world's consumers. Africa, with its surging middle class population, will create more demand for local products, sparking a cycle of increasing domestic growth."

The former President argued that the next decade would be the decade of emerging economies, stating that emerging economies will continue to add more to global growth than all the developed countries combined.

"After many years of economic immobilism, the continent's economies experienced a marked acceleration in growth during the past ten years, with real Gross Domestic Product (GDP), increasing by 5.2 per cent annually, compared with 2.3 per cent in the 1990s. Africa's economic pulse has quickened, infusing the continent with a new commercial vibrancy.

"Each sector is treading upward. Be it telecom, banking, retail or construction. The resurgence has come about in spite of the fact that most African countries are still facing serious challenges such as poverty, disease, and high infant and maternal mortality," Obasanjo noted.

Chike-Obi who said that banks have enough funds to lend, however, called for the creation of bankable projects and products for proper bank lending.

The AMCON boss expressed dissatisfaction over litigations that emerged in the process of recapitalising the rescued banks, which according to him may delay the process.

He added: "I don't think anybody involved in the process is happy with the delay, but we would continue to push on with the process. AMCON's mission is to do whatever it can to help the economy at large. If our economy is growing at 10 per cent per year for three years, I guarantee you that I can sell all the assets that I acquired in the process, which is my interest."

Obinna Chima

This Day/19/05/2011