The South East Business and Investment Summit Group (SEBIS) has highlighted several significant factors impeding investment in the South Eastern states of Nigeria. According to Dr. Ifedi Okwenna, Executive Secretary of SEBIS, these challenges include:
- Limited Government Support: Inadequate backing from local and federal governments hinders the growth of businesses.
- Restricted Access to Finance: Many entrepreneurs struggle to secure funding for their ventures due to stringent lending criteria.
- High Interest Rates: Elevated borrowing costs deter potential investments, making it difficult for businesses to thrive.
- Lack of Financial Literacy: Many investors and entrepreneurs lack the necessary financial knowledge to manage and grow their businesses effectively.
- Absence of Sustainable Business Structures: A lack of well-established business frameworks and infrastructures further complicates the investment landscape.
Dr. Okwenna explained that these issues, compounded by perceptions of growing insecurity and unfavorable business environments, have discouraged investors from considering the region. Once a vibrant economic hub, the South East has seen a decline in its investment attractiveness compared to other Nigerian regions.
Historical Context and Current Trends
He pointed out that the scars of the nearly three-year civil war have left the region economically devastated, causing a significant outflow of human and financial resources. Moreover, the lack of cooperation among the five subnational governments in the South East has hampered collaborative economic development initiatives.
Despite outperforming other regions in critical human development indicators—such as having the lowest poverty rates and a higher per capita GDP—Dr. Okwenna noted that the region’s economic performance has not kept pace with its potential. South Easterners, traditionally known for their strong presence in trade and commerce, are increasingly choosing to invest outside their region due to better business conditions, infrastructure, and opportunities for skill development in other parts of the country and beyond.
He lamented the decline of key markets like Onitsha and Aba, which were once among West Africa’s largest and most bustling trade centers. “Unfortunately, the South East may have lost this edge, as many find it more attractive to invest outside the region,” he added.
Upcoming South East Business Summit
In response to these challenges, the upcoming South East Business and Investment Summit, set to take place in Enugu in December 2024, aims to address these issues head-on. The summit is expected to attract over 1,000 business leaders, investors, and innovators from around the world, with an additional 10,000 participants joining virtually.
Dr. Okwenna described the event as a crucial opportunity to reshape business and investment in the South East, stating, “This will be the most important business meeting in the South East and a key driver for corporate and economic transformation in the region.” The summit seeks to provide a platform for dialogue and collaboration that could reinvigorate the region’s economic landscape and restore its former prominence as a center of trade and commerce.