General Electric (GE) a diversified blue chip American conglomerate, plans to make Nigeria a hub for its African businesses as it moves to grow its presence in the region.
GE specialises in developing technology solutions for infrastructure projects in oil and gas, power generation, healthcare, transportation, rail transportation and aviation.
The company had revenues of over a $150 billion in 2011.
GE’s intention to make Nigeria its Africa hub was disclosed by the President and CEO of GE Nigeria, Lazarus Angbazo, in an exclusive interview with BusinessDay at the weekend.
“The reason we are focusing on Nigeria is that it is big, it has tremendous upside opportunities compared to other African Countries,” Angbazo said.
“Compared to Nigeria’s GDP of $270 billion or budget ($31 billion) it is easy to understand the scope of GE operations globally,” said Angbazo.
However less than 2 percent of GE revenues came from Africa, with Nigeria contributing about 25-30 percent of Africa’s contribution to GE, or between $700m - $900m for 2011.
Angbazo said it is essential to grow Africa’s contribution to GE’s global business.
In Nigeria, where the cost of funds approaches 30 percent for most businesses, Angbazo said GE would be willing to invest in some of the power generating and healthcare projects and provide the initial funding that is critical to getting such projects off the ground. “If a project is viable and sustainable, we would be willing to commit up to 15 percent capital on the project. We will leverage our relationship with other financials in the world for our customers, both local and international banks,” he said.
According to him, GE plans to bring in technology, experience, a network of partners, tremendous wherewithal, transparency and an ethical way of doing business.
GE earlier in the year signed an MoU with the Federal Government in the power sector, to support the development of 10,000 megawatts of power over 10 years, which requires GE’s commitment and specific investment in the power sector.
The company also signed a similar MoU in the healthcare sector, to support the establishment of diagnostic centers and specialist hospitals in Nigeria.
“We are currently working on those and they require very significant and specific investments from GE,” Angbazo said.
GE operates as a technology and financial services company worldwide.
The company’s energy infrastructure segment offers wind turbines; gas and steam turbines and generators and integrated electrical equipment and systems.
The company’s healthcare segment provides medical imaging and information technologies, medical diagnostics, patient monitoring systems, disease research, and drug discovery, biopharmaceutical manufacturing technologies, and remote diagnostic and repair services.
The company was founded in 1892 and has its headquarters in Fairfield, Connecticut, USA.
Source :businessdayonline.com
