General Electric (GE), a 123-year old American Conglomerate with
operations in 130 countries around the world, is gearing up to further
exploit the economic potentials inherent in sub-Saharan African markets,
especially Nigeria and Ethiopia. At the ongoing World Economic Forum (WEF)
on Africa, GE said it would increase its capital outlay to US$10 billion
over the next five years.
The conglomerate will target power, health and locomotive opportunities in
several African countries. Nigeria, its prime target, offers a ready
market with the numerous gaps in infrastructure and a new government
looking to drive “change.”
According to a report by Ventures Africa, GE’s Transport Leader in-charge
of Africa, Mr Thomas Konditi, said “We’re bullish on Nigeria. We met with
a couple of the incoming leadership and they’ve put rail right behind
power. They don’t have mines as much, so you’re going to look for more
general freight” .
According to Konditi, Nigeria transports only 0.1 percent of its freight
by rail and could boost the number of locomotives to 500, a 1900 percent
increase over the current 25 engines in the country. GE plans to
reinitiate talks with the new Nigerian government on a previous agreement
for 200 locomotives.
Over the past decade, GE has invested massively in Nigeria, the most
significant being a US$1 billion service and manufacturing facility in the
tourist city of Calabar, Cross River State. It has also engaged
partnerships with the likes of Dangote to solve the power challenges in
the country.
Jeff Immelt, GE’s CEO, has identified Africa as one of the company’s most
important growth areas, with plans to invest US$2 billion in the region by
2018 as well as double its workforce on the continent.
With these commitments to the continent, spanning the development of
facilities, supply chains and workers, the company will be suitably
positioned to tap a significant share of Africa’s economic bounties once
they materialize.