Some financial experts have predicted that agricultural sector will drive economic activities in the country post COVID-19.
This, according to them, was in view of the various intervention funds injected into the sub-sector by the federal government.
Speaking at the EFG Hermes first virtual investor conference held recently, the Head of Frontier Research, EFG Hermes, Kato Mukuru, said production of basic consumables like what to eat would drive the economy.
According to him, “It is really hard when to call the peak or timing of the peak of the crisis for a country without a scientific model, hopefully Nigeria will peak August and done by the end of September, 2020.
“Agriculture will drive the recovery process very fast because of the various Central Bank of Nigeria facilities that support funding agricultural products. There is a massive need for Nigeria to reduce its import bill and bulk of it is basic products.”
Earlier, commenting on the conference, Chief Executive Officer, EFG Hermes Holding, Karim Awad said, “The conference is being held in the middle of significant global economic changes as the COVID-19 pandemic continues to have effects, with special challenges facing Frontiers Emerging Markets (FEMs).
“Lockdowns and the resultant decrease in global trade earnings, coupled with a contraction in portfolio inflows have strained several countries’ financial positions.”
Despite current challenges facing frontier and emerging markets, the co-CEO of the Investment Bank at EFG Hermes, Mohamed Ebeid, believes the changes in the macro picture might create new opportunities for countries, markets and companies.
“Investors and executives will nevertheless have to navigate a changed landscape, where previously more-or-less hidden structural trends come to the fore and accelerate.”
Reiterating the role agricultural sector will play in the post COVID-19 in the face of FEMs opportunities, Mukuru noted that, “there is so much more that can be done in terms of processing and distribution.
“We will begin to see more investments in retails, household products, supply chains, cold storage facilities for farmers, it is going to be a new and dynamic Nigeria and what people need will be critical in the post pandemic era.”