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Passing Over Nigeria For Ethiopia And Egypt At The BRICS Summit: Key Lessons




The Oasis Reporters


August 25, 2023

 

 

 

 

 

 


By Greg Abolo



I watched snippets of the BRICS meeting in South Africa on Satellite television, especially when Cyril Ramaphosa, the South African president, announced with a serious looking face, the names of the countries that would join an expanded BRICS by their summit next year as permanent members.


Ramaphosa, on behalf of the group saw Ethiopia, and passed over Nigeria, the biggest economy in Africa.


Is he saying that the largest black African nation is big and not significant?


Picking Egypt is quite understandable, at least that is a serious country. It had no electricity, a veritable sector for powering growth, and made it a possibility. Nigeria is still at the darkest stages of darkness, knowing not what to do.

 


Something really must be wrong.


Here’s Prof Ndubuisi Ekekwe, @ndekekwe on the matter:



“Surprising that BRICS did not pick Nigeria: “The choices by the current members — Brazil, Russia, India, China and South Africa — contained a few surprises, the biggest being the addition of Iran, which joined three other Middle Eastern states: Saudi Arabia, the United Arab Emirates and Egypt. Argentina and Ethiopia rounded out the half-dozen nations tapped for inclusion…” New York Times.



Let us shoot for G7 and convince the US, UK, Japan, Canada, France, Germany and Italy to expand to G8 for #Nigeria! Seriously, there is a huge penalty on perception; Nigeria is not having the best right now. That Iran can make a list along with Ethiopia should activate a moment to search the soul of Nigeria.”


We once speculated about another group, MINTs (Mexico, Indonesia, Nigeria, Turkey).

What Are the MINTs (Mexico, Indonesia, Nigeria, Turkey)?
MINT (Mexico, Indonesia, Nigeria, Turkey) is an acronym that refers to a group of countries with the potential to realize rapid economic growth. The respective countries were selected based on specific demographic, geographic, and economic factors.


IT’S KEY TAKEAWAYS:


MINT is an acronym for Mexico, Indonesia, Nigeria, and Turkey.


Fidelity selected these countries in 2011 based on their potential for future growth based on certain geographic, demographic, and economic factors.



The MINTs were the successors to the BRIC countries—Brazil, Russia, India, China and South Africa—and chosen for the same reasons.


Despite their potential for rapid economic growth, MINTs may suffer from corruption, political instability and economic crises.

So, Nigeria is neither here nor there. But it will get somewhere, if it fixes it’s house in order.


Understanding MINTs (Mexico, Indonesia, Nigeria, Turkey)


The acronym is similar to BRICS, which refers to the economies of Brazil, Russia, India, China and South Africa. MINT was coined by Fidelity Investments and popularized by Jim O’Neill, a British economist with Goldman Sachs who had created the term BRIC.



MINT refers to four countries: Mexico, Indonesia, Nigeria, and Turkey. Fidelity selected these countries in 2011 as a group that they expected would show strong growth and provide high returns for investors over the coming decade. The grouping was based on various factors such as the countries’ large populations, favorable demographics, and their emerging economies.


When compared to the BRIC countries (Brazil, Russia, India, and China), MINTs have noticeably smaller economies. BRIC is a group of emerging-market economies that enjoyed strong growth for a number of years. As the BRIC countries’ growth slowed (with the exception of China), investors turned their attention to MINTs, which analysts touted to be the next countries with a rapidly growing economy.



Despite their prospects for ranking in the top 10 global economies by 2050, investing in MINTs doesn’t guarantee profits. MINTs still suffer from corruption and political instability, after struggling with significant problems in the past. For example, Turkey faced an economic crisis around the year 2000, and the International Monetary Fund bailed the country out in 2001. Despite the upheaval, analysts consider the country a viable investment, particularly since Turkey implemented changes specifically designed to prevent the recurrence of the problems that originally led to the crisis.



Requirements for MINTs
Fidelity used a variety of qualifying factors when selecting countries ripe for economic investment. Some qualities are common to all the MINTs. For example, a young population, which makes for a strong workforce, typifies MINTs. MINTs’ legal systems and regulations are business-friendly, and their governments promote pro-growth policies.



Fidelity chose countries that were geographically well-positioned for trade and not overly dependent on a single industry. Fidelity included Nigeria, for example, because of its natural resources, large population, well-regulated and well-capitalized banks, and opportunities to expand retail credit. Fidelity included Indonesia because the firm considered the country’s large workforce to be a significant economic asset.



Fidelity also focused on counties that it believes may become major exporters of both raw and finished goods in the future although Nigeria, Mexico, and Indonesia are already major oil exporters. Investors hope that MINTs fulfill their promise and show strong growth in GDP and stock prices.





Additional resources : Twitter
Professor Ndubuisi Ekekwe
Investopedia





Greg Abolo

Blogger at The Oasis Reporters.

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