HOUSTON Rangers Ferguson Jenkins Jersey , TEXAS — Gaddy Fankeng has chosen Nigeria for its first chemical plant, announcing on Thursday that he is working with some investors to build a $25 million chemical plant in Port Harcourt, two weeks after returning from Nigeria. Gaddy Fankeng, Co-Founder and CEO of Global Chemliquidations Llc, believe that Africa is a significant growth market that no consumer products business can afford to ignore. Gross national income per capita in many African countries is already greater than in China or India, gross domestic products (GDP) is comparable to Brazil and, at 16% compound per annum, consumer spending is rising rapidly. But hand in hand with this enormous opportunity goes enormous complexity. Even the global companies that are already established here recognize that capturing the opportunity in Africa is going to be a long, and complex, journey and the easiest way to penetrate the chemical market is to partner with established companies such as Global Chemliquidations: a reliable and well known distributor of quality and affordable chemicals in the region. According to the medias, Global Chemliquidations have been able to generate competitive advantage by influencing consumer preferences, building brand loyalty and shaping industry structure. According to Mr. Gaddy Fankeng, “Companies that have yet to build a presence in the chemical industry in Africa need to move fast if they are to enjoy the same advantages. Having the “right” approach in place is essential. But deciding what “right” looks like is a matter for judgment that will require companies to understand the specific characteristics of Africa’s varied markets, think differently and think long term.”

To help understand Mr. Gaddy Fankeng decision, let’s take a look at the Nigerian Economy and Industry Overview.

The Nigerian Economy

Over the last few years, the Nigerian economy has experienced a series of reforms and restructuring of its key sectors. Such reforms include the financial, petroleum, power sector, among others. The financial sector reform has been the most noticeable as the banks and insurance companies have been mandated to recapitalise in line with government regulatory requirements. The telecommunications industry also experienced a major transformation when the general system for mobile telecommunications (GSM) was introduced in 2001. The deregulation of the downstream petroleum sector and privatization of many previously government-owned parastatals also represent some of the many structural changes that have been made in recent years.

The size of the Nigerian economy as measured by the country’s GDP has increased by a compound annual growth rate (CAGR) of 20.68% (in nominal terms) between 2001 and 2006. A noticeable trend in the economy’s growth pattern is the increasing contribution of the non-oil sector, particularly the agricultural and manufacturing sectors to the nation’s GDP. It is expected that in the years ahead, other key sectors such as construction, consumer goods and tourism may begin to play more important roles in overall economic growth and development. As the on-going economic reforms continue to trickle down into other segments, and baring any unforeseen circumstances, we expect a much more balanced and self- sustaining economy in years to come.

Furthermore, consumer prices (year on year) declined sharply in 2005 due to the application of strict monetary and fiscal policy measures. With single digit inflation already being experienced, the economy is gradually moving towards a more stable and investor friendly position. This decline in inflation figures is further aided by the boost in agricultural production which has led to the general rise in the food supply resulting in reduced price level. Government’s favorable monetary and fiscal policies have also contributed to the favorable consumer price index position.

The capital market has experienced a phenomenal growth over the past couple of years. The deluge of public offerings and rights issues have increased the overall level of activity in the market with volumes and values attaining unprecedented levels. The CBN enforced recapitalization drive (for banks) in 2005 is largely responsible for the bullish trend that has been experienced in recent times. With the Pension reforms having had its desired effect through the injection of fresh capital into the market by the PFAs and increase in private equity investments, the level of capital market activities have increase tremendously.

The country has experienced 8 years democratic rule for the first time in its recent history and for the first time in the post-independence period, political power has been successfully transferred from one civilian government to another. Furthermore, the country has retained its BB- credit rating by S&P and Fitch and has continued to receive rave reviews both as a result of its ongoing reforms and agendas. Sustainability of these initiatives will however remain a major challenge for the new administration in the years to come.

Industry Overview

The chemical and paints industry has been in existence for a number of years. The industry has gone through various levels of development from the manual based processes to more technologically advanced production methods. However, the level of development of the sector in Nigeria is still low when compared to other countries with more advanced technical know-how. Countries like the US, Mexico and the United Kingdom have more developed paint making processes and as such derive more revenue from paint making.

The Nigerian paint sector is a highly competitive one. There is free entry and exit due to the rather ‘friendly capital required’ to set up a business. Also, op Roger Fe. Cheap Hoodies   Cheap NFL Jerseys China   Cheap Football Hats   Cheap NBA Shirts China   Wholesale Jerseys   Wholesale Shirts   Wholesale Hats   Wholesale Hats   Wholesale NFL Jerseys From China   Wholeasale NBA Jerseys