Nigeria NGE ETF

[beacon]

G20 welcomes African Union as permanent member at Delhi summit
https://www.cnbc.com/2023/09/09/g20-...-union-au.html

Great for Africa (and Nigeria) trade and economic stability, and another step in the direction of a more stable multi-polar world.

Nigeria joined the huge Africa Continental Free Trade Agreement (AfCFTA) over four years ago, when it was formed to boost manufacturing across 55 members of the African Union (AU) - together in a single market of 1.2 billion people - by removing trade barriers such as tariffs across Africa, but Buhari then closed borders to end smuggling - which increased inflation. Nigerian non-oil exports peaked at 1 Trillion Naira (~ $2.5bn) in 2019, and never recovered post Buhari's border closure.

Now, with Nigeria leading ECOWAS and Tinubu speeding up reforms and re-engaging on regional security and fellowship, Africa and Nigeria should benefit again. Manufacturing is 10% of AU's combined GDP of ~$3.5 trillion, but Africa also has 30% of the world’s mineral reserves, 12% of the world’s oil, 8% of the world’s natural gas reserves, 40% of the world’s gold, and 90% of its chromium and platinum – both valuable metals. 63% of world’s cobalt production comes from DRC. DRC and Rwanda are the world’s largest producers of tantalum (50% together), etc.

If Tinubu can also secure some bilateral agreements or FTAs out of G20 in 2023, Nigerian Naira should start to take-off. Meaning the NGE NTA should rise, and the pay-off at the imminent NTA distribution should be larger. The arbitrage opportunity just keeps getting better and better.