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Nigeria, Africa’s biggest oil producer, will be the next “gold rush” on the continent as investors Economic Growth, Earnings Outlook
take advantage of a booming economy, former South African central bank Governor Tito Updated 36 minutes ago

Mboweni said.
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Nigeria’s gross domestic product will overtake South Africa’s in the next three decades, Published 42 minutes ago

Mboweni, who is now an adviser for Goldman Sachs Group Inc., said in an interview in
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Johannesburg on Oct. 8. Its economy of $169 billion compares with South Africa’s $286 billion,
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according to World Bank data.

“Nigeria is going to be Africa’s growth story for the next 15 to 20 years,” Mboweni said after
returning from a visit to Nigeria’s capital, Abuja, and the commercial hub, Lagos, as part of a
delegation from Goldman Sachs.

The West African nation, the continent’s most populous with 140 million people, is targeting
economic growth of 10 percent in the coming years as it boosts spending on power plants and
attracts more investment, Finance Minister Olusegun Aganga, a former Goldman Sachs
executive, said Sept. 3. The government is preparing to sell its first Eurobond of $500 million
this year.

Goldman Sachs, which doesn’t have an office in Nigeria, is bidding to advise on the sale of state-
owned power-generation and distribution companies, the Bureau of Public Enterprises said on Related Videos

Aug. 31. The government hasn’t said who will manage the Eurobond sale yet. Greenspan Speaks on
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Oct. 8
Mboweni is also chairman of Nampak Ltd., Africa’s biggest packaging maker, which is benefiting
from its business in Nigeria, he said. Nampak manufactures bottles for Guinness beer and
Play Video
cigarette packages in the country.
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Banking Crisis

Nigeria has previously failed to convert its oil wealth into economic development. In its latest
crisis, central bank Governor Lamido Sanusi, who took office in June last year, fired the chief Play Video

executive officers of eight of the 24 commercial lenders and pumped 620 billion naira ($4 Holland Interview on
billion) to bail out 10 of them as the industry risked collapse. Sanusi said on Sept. 21 that the JPMorgan's 3rd-Qtr Profit

economy will probably expand 7.8 percent this year, up from 7 percent in 2009.

Nigeria has oil production capacity of more than 3 million barrels a day, Oil Minister Diezani Play Video
Alison-Madueke said on Sept. 27, making it the Organization of Petroleum Exporting Countries’
sixth-largest supplier. Oil accounts for more than 80 percent of government revenue, according
to the Finance Ministry.

http://www.bloomberg.com/news/2010-10-11/goldman-sach-s-mboweni-says-nigeria-ma... 10/14/2010
Goldman Sachs's Mboweni Says Nigeria May Become Africa's New `Gold Rush' - Bloom... Page 2 of 3

Market Snapshot
There are a number of good, young technocrats in Nigeria’s government who will help sort out U.S. Europe Asia

the “chaos” in the country, Mboweni said.

NIKKEI 9583.51 +180.00 (1.91%)

‘Good Job’ TOPIX 836.95 +14.30 (1.74%)

HANG SENG 23673.80 +216.13 (0.92%)

A former labor minister in President Nelson Mandela’s first Cabinet in 1994, Mboweni, 51, left
the South African Reserve Bank in November after a decade at its helm, declining President Stocks on the Move

Jacob Zuma’s offer to serve a third term. He was named chairman of AngloGold Ashanti Ltd.,
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Africa’s biggest gold producer, on Feb. 24, three weeks after he was appointed to the same
position at Nampak. Stocks Gain on China Economy, U.S. Earnings

Mboweni, who is a patron of the South African Ballet Theater, is currently raising $130 million
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for a planned specialist children’s hospital in Johannesburg. Forever, CBRE Says

The Reserve Bank of South Africa is doing a “good job,” Mboweni said. Interest rate increases Biden, Obama's Traveling Salesman, Makes Hard
Sell to Voters
between June 2006 and June 2008 helped to curb price gains, he said.

Singapore to Allow Stronger Currency Even as

Inflation has been inside the central bank’s 3 percent to 6 percent target range since February,
Economy Contracts Updated 3 hours ago
easing to an annual 3.5 percent in August.
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Union Criticism
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Mboweni was criticized by South African labor unions for not cutting interest rates fast enough
in 2009, which they said prolonged the economy’s first recession in 17 years. He lowered the
benchmark rate six times to 7 percent between December 2008 and August 2009. His
replacement, Gill Marcus, has cut the rate by 1 percentage point since then. Sponsored Links

In his new role at Goldman Sachs, Mboweni said he has met with foreign investors, who raised Agribusiness banking
Speak to one of our specialists in the
concerns about calls from the youth wing of the ruling African National Congress to nationalize agriculture sector.
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the country’s mines. His response to them is that the “center will hold” in the ANC, he said.
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led by Julius Malema, argued at the meeting that South Africa didn’t derive enough benefit from
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To contact the reporters on this story: Gordon Bell in Johannesburg at gbell16@bloomberg.net;
Nasreen Seria in Johannesburg at nseria@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at

phirschberg@bloomberg.net.

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