Sonnie Ayere, founder of Dunn Loren Merrifield in 2009. Under his leadership, Dunn Loren Merrifield reveals the context of the Nigerian financial market and the African financial markets. In an interview with Financial afrik, he focuses on performances and prospects for 2021

Sonnie Ayere was named the best CEO of the decade in 2020 and DLM Capital won the “Innovative Investment Bank of the Year 2020" award at the Business Day Financial Institutions Award. According to him, in 2021, African stock markets behaved in a manner reflecting frontier markets that had lost significant value over the years in favor of a higher-yielding flight to security assets.
“African stock markets grew significantly in 2020; driven by the resumption of global growth long hampered by the pre-pandemic trade war between China and the United States and the slowdown in global economic activity on par with other countries following the outbreak of Covid-19. Investors looking for value found African financial assets at a significant discount to global markets. The global low-return environment has driven retail and institutional fixed income investors to invest in equities in Nigeria as benchmark interest rates have fallen,” he explained.
According to Sonnie Ayere, the relatively low depth of the market is threatening activity in a context of low foreign currency reserves by African central banks. With each downward cycle in commodity prices, it is characteristic to see a corresponding decrease in the value of the currency for most African countries. That is why he will say, that the year 2021 marks the beginning of a coordinated response to the pandemic that has hit the global economy. “We see 2021 bringing an era of new growth to industries that have struggled in the past... We want to focus on areas that need funding. We expect the low-return environment to provide short-term financing opportunities, continuing to develop debt markets across Nigeria,” he said. Businesses will evolve, driven by new growth areas, such as technology and rationalization or the possible exits of businesses or entire industries