NIGERIA: G.E. VISITS NIGERIA TO DISCUSS INVESTMENT

UNCLAS ABUJA 002324 SENSITIVE SIPDIS DEPT PASS TO USTR- AGAMA, USTDA - FITTS/MARIN, EXIM - JRICHTER AND AID AFR/SD - CURTIS DOT FOR FAA MEL CINTRON E.O. 12598: N/A TAGS: ECON ENRG EAIR ELTN EFIN ERTD EINV NI SUBJECT: NIGERIA: G.E. VISITS NIGERIA TO DISCUSS INVESTMENT OPPORTUNITIES SENSITVE BUT UNCLASSIED - NOT FOR DISTRO OUTSIDE USG ¶1. (SBU) Summary. On November 12, 2008 the Ambassador met with a 23 member international delegation, plus 10 in-country staff, from General Electric's 12 business units to discuss potential for investment opportunities in Nigeria. GE expressed interest in increasing its investments in Nigeria, which the Ambassador encouraged. The GE hopes to focus in railways, electricity generation and health care sectors. The Ambassador encouraged GE to engage with the National Assembly, State Governors and non-governmental organizations as they move forward. End Summary. GE EXPANDING INVESTMENTS IN AFRICA -------------- ¶2. (SBU) Ambassador Sanders met with a 23 member international delegation, plus 10 in-country staff, from General Electric (GE) on November 12, 2008 in Abuja. The delegation represented all twelve business units of the company and was led by the new President and CEO for Sub-Saharan Africa Lazarus Angbazo and GE's Country Manager Doere Akobo. GE is also visiting Kenya, Mozambique, and Angola during their trip to Africa. The purpose of the visit was to examine potential business. The GE team met with Nigerian government officials, non-government organizations, academics, and private companies. Following the visit, the team will prepare recommendations for potential investment and invite key Nigerians to participate in discussions at the John F. Welch Leadership Development Center in Crotonville, New York in early 2009. FOCUS ON NIGERIA -------------- ¶3. (SBU) In a private meeting, the Ambassador welcomed GE and encouraged their investment in Nigeria. Lazarus replied that GE has taken a big step with its first ever focus on sustainable investment in Nigeria. The Ambassador noted that other investors, especially from China and India, are numerous and very engaged in Nigeria. In the past, U.S. investors have tended to focus on fully developed projects that do not require project development. The Ambassador thanked GE for its involvement in the rail and electricity sectors and encouraged more. ¶4. (SBU) In response to a question on contracting and partnership frameworks, the Ambassador explained U.S. companies should draft very clear contracts and well-developed arbitration sections. The Ambassador underscored that the current administration requires all ventures and partnerships be approved through the National Assembly and has overturned several from the previous administration that had not. ¶5. (SBU) The Ambassador encouraged GE to engage in public private partnerships (PPP) because PPPs have resulted in useful information sharing, collaboration and buy-in from key participants. She also suggested that GE engage with the National Assembly, State Governors, State Commissioners and non-government organizations because collaboration was one of the key components to success in Nigeria. The Ambassador stressed the importance of pro-active engagement with the governors, and related that the USG has had success in the health sector because of this pro-active engagement with state governors. ¶6. (SBU) Comment: Since the beginning of 2008 the Mission has advocated with GE for the company to increase investment ties with Nigeria. GE's business units are competitive in the railway, energy and health sectors and could provide the company with increased revenue and goodwill. The visit is a positive first step and hopefully the planned discussions with a Nigerian delegation to NY in early 2009 will lead to concrete plans to increase investments in Nigeria. End Comment. ¶7. (U) This cable was coordinated with Consulate Lagos. SANDERS