6th June, 2014
Funsho Arogundade
In spite of the seeming challenges inhibiting foreign investments in Nigeria, Jean-Francois Van Boxmeer, CEO, Heineken International, parent company of Nigerian Breweries plc, has revealed that the high rate of return on investment has made Nigeria one of the most appealing destinations for investors globally.
Van Boxmeer, who was the Co-Chair at the World Economic Forum Africa, held recently in Abuja, said Nigeria is in a strong position to outwit competition in the struggle for investments because of her huge population and growing middle class.
“Nigeria’s young population has huge potentials complemented with the high spirit of the people. Even though Nigeria being a very diverse country, like India, but somehow you have a fighting spirit which unifies you and this I think is a great asset for a people to do business with,” he said.
Van Boxmeer also stressed that the efforts of successive governments give investors enormous confidence about the Nigerian economy. According to him, the country in the past decades has improved a lot, making significant efforts to diversify from oil.
“What I observed is that, a lot of efforts have been made in the development of other industries, not only the manufacturing industry but also telecommunications, IT, and banking which has had its ups and downs. But you do have a domestic banking sector which is so strong,” he stated.
On the strength of Nigerian Breweries plc, his company’s subsidiary in Nigeria, Boxmeer said Heineken International saw the analysis on Nigeria’s economic prospect, and the company resolved to improve her presence in the country, hosting her second largest operations after Mexico.
“We have been in this country for so many years and we have always seen that the potential was perhaps beyond the international image of the country. So we have been building our position of leadership. Nigerian Breweries plc has been in this country for decades and wants to continue that leadership.
“We are investing ahead of the curve. If you don’t believe it or you are over-conscious, you will lose the market share. But if you observe that you have the potential, then you have to invest ahead of the curve,” the Heineken boss explained.
He also spoke extensively on Nigerian Breweries plc innovation with local raw materials like sorghum and cassava in their production in Nigeria.
“I hope that within the coming years, Nigerian Breweries will be ahead in Heineken’s commitment in Africa to have by 2020, 60 per cent of our raw materials locally sourced. And with sorghum, there has been major investment in improving the yields and that would be beneficial for all sorghum farmers in Nigeria, same goes for cassava,” he concluded.