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Are Special Economic Zones the key to African growth?

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By Chris Whales, Publisher at the Journal of African Business

Atlantis SEZ north of Cape Town is targeting industries in the green economy. GRI Wind Steel South Africa is making wind towers in the blue building. Credit: ASEZ

December 2022 saw the celebration of 30 years of Special Economic Zones in Nigeria. A joint event was hosted by the African Union (AU) and the Africa Economic Zones Organization (AEZO) under the theme, “African Special Economic Zones: Engine for Resilience and Accelerator for Sustainable Industrial Value Chains Development.”

The meeting doubled as the 5th African Union Symposium on Special Economic Zones and the 7th edition of the AEZO Annual Meeting and was held in the Nigerian capital, Abuja.

An indication of the importance of the event is seen in the other partner organisations: United Nations Conference on Trade and Development (UNCTAD), the United Nations Industrial Development Organization (UNIDO), the African Development Bank (AfDB) and the German Agency for International Cooperation (GIZ).

The first African Special Economic Zone (SEZ) was launched in 1970 by Mauritius and by the end of the decade both Ghana and Senegal had followed suit. According to African Economic Zones Outlook (2021), more than 200 SEZs are currently operational in 47 African countries while a further 73 projects.

Nearly 150 000 hectares is devoted to SEZs on the continent while over $2.6-billion in investments has been made into a wide variety of sectors such as agro-processing, manufacturing and services.

Carnegie Mellon University Africa has relocated to a site within Kigali Innovation City, a zone which aims to promote digital innovation and entrepreneurial activity in Rwanda. Credit: CMU-Africa

Carnegie Mellon University Africa has relocated to a site within Kigali Innovation City, a zone which aims to promote digital innovation and entrepreneurial activity in Rwanda. Credit: CMU-Africa

Nigeria has moved on rapidly from that first foray into SEZs. Today there are six zones established and run by the federal government that serve as export-processing zones: Calabar Free Trade Zone (CFTZ), Kano Free Trade Zone (KFTZ), LADOL Free Zone, ALSCON Expert Processing Zone, Onne Oil And Gas Free Zone and the Maigatari Border Free Zone.

Altogether, licences for 52 free trade zones have been granted by the Nigeria Export Processing Zones Authority (NEPZA) but not all of them are active. Lagos has secured 18 of the licences and the Lagos Free Zone, administered by Singapore-based Tolaram, and the Eko Atlantic Free Zone are among the best known of these.

Kenya is another country with a strong focus on SEZs. A Special Economic Zones Authority (SEZA) oversees 14 SEZs in eight regions. The recently launched Konza Technopolis outside Nairobi caters to the information, communications and technology (ICT) sector.

Although the term Special Economic Zone is widely used, a number of different types of economic zones are in operation across the continent. These include SEZs, Industrial Parks (IPs), Free Trade Zones (FTZs), Export Processing Zones (EPZs) and other zones. This is why the continental body is called the Africa Economic Zones Organization.

The goals of SEZs vary from place to place, but three main motivations can be identified: to promote industrialisation or beneficiation of local resources; to boost a particular sector that has additional potential or which is not performing to expectations; to bolster and grow local economies and small, medium and micro-enterprises (SMMEs).

Textile manufacturing centre, Benjamin William Mkapa SEZ at Dar es Salaam.

Textile manufacturing centre, Benjamin William Mkapa SEZ at Dar es Salaam. The BWM SEZ was the first government-owned industrial park. Credit: Export Processing Zones Authority (Tanzania).

Industrialisation

By locating SEZs strategically in particular economic corridors and near agricultural or mineral resources, planners aim to promote agro-processing or mineral beneficiation.

Some zones are targeting energy, and more specifically renewable energy. In Egypt, the Suez Canal Economic Zone (SCZONE) in 2022 signed a preliminary agreement with Indian company ReNEW Power for 220 000 tons of green hydrogen production, with an investment value of approximately $8-billion.

This was the eighth such agreement that SCZONE has so far signed with the aim of localising and manufacturing green fuels. Some of the other partners include Maersk, Scatec and EDF Renewables.

Sector enhancement

It is to boost a particular sector that the South African province KwaZulu-Natal has announced plans to create a third economic zone. The Dube TradePort SEZ is located at the main regional airport and naturally deals in logistics and the import and export of agricultural products but also has manufacturing elements, while the port-based Richards Bay Industrial Development Zone plays to its strengths as a deepsea port and is intended to become an energy hub.

The new SEZ will have a specific focus on the clothing and textile sector and be located in towns like Newcastle and Ladysmith where enterprises in those sectors already exist.

A focus on the automotive sector defines Morocco’s Tangier Automotive City and the Tshwane Automotive SEZ in South Africa.

Supporting SMMEs

In Mozambique a mining company, Kenmare Moma Mining, has helped establish the MozParks Topuito Agro-Industrial Park in Nampula Province as an innovation centre to support startups in getting access to the value chain. MozParks, the other partner in the venture, is the developer and operator of agro-industrial parks.

As a recent AEZO newsletter noted: “In emerging markets, where they account for 90% of all firms and 50% of all jobs created, SMEs constitute the backbone of the global economy. The impact is greater in Africa, where SMEs employ almost 80% of the labour force on the continent. Although SMEs are a substantial economic force, there is still a lot of room for expansion.”

Africa and the world

The AEZO is a continental association which was founded in 2015 and now has 82 members representing 42 African countries. In 2022, the process of economic zones and their representative bodies working together went global. In May 2022, UNCTAD met with seven global, regional and national associations representing over 7 000 SEZs to launch a global alliance.

The Global Alliance of Special Economic Zones (GASEZ) aims to drive the modernisation of these zones across the world and maximise their contribution to the UN Sustainable Development Goals (SDGs). UNCTAD Secretary-General Rebeca Grynspan said, “The United Nations 2030 Agenda for Sustainable Development provides an opportunity for Special Economic Zones to attract investment by putting SDGs at the forefront of their value proposition.” source

Read GlobalAfricanetwork:

https://www.globalafricanetwork.com/featured/are-special-economic-zones-the-key-to-african-growth/

SEZ provides solid base of operations for operations targeting western SADC

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The SEZ designation application is in its final stages. Post-SEZ designation the project will initiate Phase 1 (2023-2024) of the project which will be the SEZ construction and development.

JUNE 9, 2024

Economic zone targets western SADC for operation

The Special Economic Zone (SEZ) designation application is in its final stages. Post-SEZ designation the project will initiate Phase 1 (2023-2024) of the project which will be the SEZ construction and development.

The Namakwa Special Economic Zone – gearing the western SADC up for economic growth

The proposed Namakwa SEZ is being developed to be an industrial hub for the West Coast of Africa and a catalyst for industrialising the western SADC area.

It is located in the small mining town of Aggeneys. Aggeneys is in the Khai-Ma Local Municipality within the Namakwa District Municipality of the Northern Cape Province of South Africa. Aggeneys is 66 km from Pofadder (headquarters of the local municipality) and 110 km from Springbok, where the office of the district municipality is located.

The Vision is “to be the Catalyst for Economic Growth and Integration throughout western SADC.”

Value Proposition

The value proposition of the Namakwa SEZ is based on the existence of the Gamsberg Zinc Mine (pictured above) and the proposed building of a smelter by Vedanta Zinc International. These would be the anchor tenants of the SEZ.

It is proposed that a smelter be built to treat zinc concentrate produced at Gamsberg. The zinc concentrate produced at the existing concentrator plant will be treated in the smelter using the conventional roast-leach-electrowinning (R-L-E) process.

The SEZ designation application is in its final stages where we envisage that the final and complete designation shall be granted by the Department of Trade, Industry and Competition (dtic) in September 2022.

The anchor investor of the SEZ will be Vedanta Zinc International which is already running the Gamsberg Zinc Mine and intends to build a smelter. (Photo: Kevin Wright/Vedanta Zinc International)

Various domestic and international investment partners have indicated a keen interest to invest in the Namakwa SEZ with industries that include but are not limited to mineral beneficiation, construction, agriculture, green energy production, petrochemical, transport, engineering supplies, localisation and SMME development.

The Namakwa SEZ development is “the game changer” for minerals beneficiation in South Africa and the Northern Cape Province, providing a “turn-key solution” to industrialisation.

Post-SEZ designation the project will initiate Phase 1 (2023-2024) of the project which will be the SEZ construction and development.

The Northern Cape Provincial Government, with support and guidance provided by the dtic, is fully aligned to the establishment of the SEZ and has committed all efforts and energy to make a real success of this project.

Downstream investment

Non-ferrous metals such as zinc have characteristics that make them immensely useful in a wide range of downstream applications. Resistance to corrosion and their non-magnetic qualities are among the reasons for the wide range of uses to which they can be put.

It is envisaged that investors wanting to take advantage of the by-products of the mine and the smelter will be attracted to the Namakwa SEZ. Various wastes and by-products will be generated by the smelter that could be useful to investors.

Waste includes: Iron cake stabilized (dry), Jarofix; effluent treatment plant cake (dry); evaporation pond salts (dry); and cellhouse sludge (dry).

By-products include: manganese cake (dry); Cu-Cd cement (dry); Co-Ni cement (dry); and sulphuric acid (wet). Investors in this category include businesses in the follow sectors:

Sulphuric acid (including pharmaceutical, automotive batteries and paper bleaching) Fertilisers, Explosives, Paints

Read Globalafricanetwork: https://www.globalafricanetwork.com/manufacturing/namakwa-sez-zinc-smelter/

Expand African operations through new SEZ in North West Province

The Bojanala Special Economic Zone offers a diversity of industrial, business and investment opportunities.

JUNE 15, 2024

Special economic zone poises to transform South Africa’s North West region

The Bojanala Special Economic Zone (SEZ) in the North West Province of South Africa, is poised to transform the region into a sustainable beneficiation hub for mineral processing (PGMs).

The transformation would also cover agro-processing and the manufacturing of capital equipment and renewable energy components.

Organisations operating in these sectors are invited to explore the benefits of establishing or expanding operations with the Bojanala SEZ and contact the SEZ below for more information.

Why Bojanala SEZ

Access to Infrastructure

88 factories available, 7.2% of total land for SEZ

Adequate water volumes available: Vaalkop Dam – 20 km from site (160 mm pipeline)

Sewerage: 200 mm pipeline to the existing waste water treatment works

Electricity supply: 11 MVA current. New substation at Ledig under construction.

Access to Transport Logistics Infrastructure

Rail (1 km from site with unutilised sidings) – Transnet Freight Rail part of PSC

Air (Pilanesberg Airport = 19 km)   

Road (along R510 connecting to N4).

Access to Markets

Platinum Group Metals is the major product of the mining sector in the North West, as the province contributed 40% of world’s platinum and 55% of the platinum in South Africa in 2017.

The North West Province also produces 70% of the country’s dimension stone and granite, 32% of chrome and 20.7% of South Africa’s gold. Other minerals produced in the province include diamonds, vanadium, slate, limestone, nickel, silica, manganese, phosphate, fluorspar and zinc.

Sectoral Focus:

Mineral Beneficiation

Renewable Energy

Capital Equipment

Agro-Processing

Bojanala SEZ geographical location and layout.

SEZ Incentives and Benefits for Investors in Bojanala SEZ

Corporate Tax of 15%

Accelerated allowance on buildings and improvement to buildings

Salaried employees (below R6 000) to receive wage allowance

Capital allowance – plant and machinery imports

Special customs and VAT incentives

Retain status for 10 years

Sunset clause until 2024.

The North West Development Corporation (NWDC) is facilitating the planning and development of the Bojanala Special Economic Zone on behalf of DEDECT and the provincial government.

More: Globalafricanetwork https://www.globalafricanetwork.com/manufacturing/bojanala-special-economic-zone-north-west-province-south-africa/

Bangladesh Economic Zones seek to improve living standards of host communities

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With the support of local and international agencies, the Bangladesh Economic Zones Authority (BEZA) is smarting to improve living standard of people residing nearby a special economic zone at Araihazar upazila in Narayanganj.

To this effect, BEZA has inked a memorandum of understanding (MoU) with Bangladesh Special Economic Zone (BSEZ) Limited, Sumitomo Corporation and BRAC.

BEZA Executive Chairman Shaikh Yusuf Harun, Managing Director of BSEZ and Sumitomo Corporation Taro Kawachi and Executive Director of BRAC Bangladesh Asif Saleh signed the MoU at a ceremony held at the BEZA headquarters in the city on Tuesday.

The MoU aims to provide the people residing in the BSEZ neighbourhood with required training in tune with the demand for manufacturing, construction and other sectors through Technical, Vocational, Education and Training (TVET) framework.

The collaboration will provide pre-primary and primary education among people residing around the BSEZ, which is also known as Japanese Economic Zone.

The people will also be provided with the opportunity to avail financial services like loans, savings, microcredit and insurance through digital platforms.

Workers employed in different industrial units and local people will also get amenities like skill development programs, health care and day-care facilities.

BEZA officials said the BSEZ has already started undertaking different social programmes under its Corporate Social Responsibility (CSR).

Speaking on the occasion, BEZA executive chairman said the construction of BSEZ has already started contributing to socio-economic development and employment generation in the localities.

The cordial support of the local people will accelerate the development of BSEZ, he added.

The Japanese Economic Zone — the first government to government EZ — is being established on 1,000 acres of land to accommodate foreign investment, specially the Japan-based companies.

Some 300 acres of land has already been developed. The BSEZ is expected to fetch in around $1.0 billion of investment from Japanese brands.

Read in Today.thefinancialexpress

https://today.thefinancialexpress.com.bd/trade-market/beza-teams-up-with-bsez-sumitomo-brac-1717526992?utm_source=newsletter&utm_medium=email&utm_campaign=world_fzo_weekly_news_june_11_2024&utm_term=2024-06-11

Special economic zones key to  industrialisation drive – experts

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Ghana bets on Special economic zones to spur industrialisation, create jobs

The Special Economic Zones (SEZs) have become special initiatives of Ghana to boost industrialisation, drive exports and create jobs.

The Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana and Kiel Institute for World Economy (IfW) said in the National Policy Forum on ‘Special Economic Zones: A Force for Industrialisation?’

The report pointed to the vital role SEZs can play in economic transformation, if implemented with supporting policies aside calling for ensuring that the benefits were widely shared and integrated with local economies.

.“Special economic zones epitomise the convergence of strategic planning, policy initiatives, entrepreneurial spirit and more. They offer a haven where businesses can thrive, unbound by constraints of conventional regulations,” said Dr. Humphrey Ayim-Darke, President-Association of Ghana Industries (AGI).

However, he cautioned that while SEZs offer “immense potential, they are not without challenges and controversies”. Fostering sustainable, inclusive growth requires addressing inherent issues, Dr. Ayim-Darke stated.

The studies underscored the need for investing in infrastructure within and around SEZs to facilitate business operations and attract investment. This can increase per capita consumption and reduce poverty levels for local communities.

Implementing inclusive policies to support small enterprises and promote gender equality in SEZ employment is also crucial for shared prosperity, the findings indicated.

Michael Oquaye Jr., CEO-Ghana Free Zones Authority, highlighted the tangible impacts SEZs are already having on industrialisation and job creation.

“In 2020, enterprises in Ghana’s free zones directly employed about 29,567 people. This number has risen to 35,399 by 2023 – a remarkable 19.7 percent increase, illustrating the zones’ significant contribution to employment,” Mr. Oquaye said.

He added that SEZ companies generate nearly 500,000 indirect jobs while capital investments in the zones increased from US$140million in 2020 to US$143million in 2023 after a pandemic-related dip. Export revenues from SEZs also grew from US$1.5billion to US$1.7billion over the same period.

To further drive SEZ growth and local integration, the Authority is promoting Ghanaian firms’ participation – with 36 percent of 258 licenced SEZ companies now wholly local-owned.

“The Authority has witnessed a surge in applications by companies in the service sector, employing digitalisation to export services and earn foreign exchange,” Mr. Oquaye noted.

Ghana has over 7,000 acres designated as SEZs, including the Tema Export Processing Zone and new sites like Adhenia. However, with Tema at full capacity, government is pushing Adhenia as its new industrial anchor.

Highlighting safeguards, Mr. Oquaye said the Authority is cracking down on abuse of SEZ incentives, with only two plastic raw material companies approved last year after allegations of violations.

“All free zone enterprises must comply strictly with regulations prohibiting unauthorized goods removal for use outside zones,” he warned, citing legal provisions for sanctions.

Looking ahead, improving data monitoring and enhancing educational opportunities are key to better evaluate SEZ impacts and equip workers for higher-paying SEZ jobs to improve wage equity.

Dr. Ayim-Darke emphasised the urgency of capitalising on SEZ opportunities, especially with the Continental Free Trade Area creating an integrated African market.

“We are at the crossroads of this era. One wonders how Africa will benefit if we do not take this opportunity seriously,” he stated. “I hope in the next era industrialisation will be actualised based on such research.”

Culled from thebftonline

Special economic zones key to  industrialisation drive – experts

World FZO Board of Directors’ Meeting: Key Highlights and Updates


On May 23, 2024, under the chairmanship of Dr. Mohammed Al Zarooni, the World Free Zones Organization (World FZO) held its first quarter Board of Directors’ meeting virtually via Microsoft Teams at 17:00 GMT.

During the meeting, Dr. Al Zarooni briefed the Board on the outcomes of his recent engagements with the World Trade Organization (WTO), the Organization for Economic Co-operation and Development (OECD), and the World Customs Organization (WCO).

Following this, the CEO presented a detailed management update.

A significant milestone of the meeting was the approval of the 2024 financial budget. Additionally, KPMG presented the 2023 financial statements and audit report, which received Board approval.

Committee updates were also a focal point, with the respective Chairpersons outlining their committees’ structure, scope, and activities:

·     Srikanth Badiga: Finance Committee

·     Jeffery Tafel: Policy and Governance Committee

·     Dr. Manuel Francisco Pedro: Membership Committee

·     Martin Dovat: Knowledge Committee

·     Cesare Zingone: Events Committee 

Furthermore, the Board reviewed the progress of the preparations for the World FZO World Congress 2024, set to be held in Dubai at Madinat Jumeirah from September 23 to 25, 2024.

The next Board of Directors’ meeting is scheduled for Thursday, August 29, 2024, to review the second quarter operations of World FZO. source worldfzo.org

OGFZA CEO: Nigeria’s IOCs Shift Focus to Deeper Waters, Sustainable Energy

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by Joseph Adam

Mr. Bamanga Jada, the Chief Executive Officer of the Oil and Gas Free Zones Authority (OGFZA), has addressed misconceptions surrounding the departure of international oil companies (IOCs) from Nigeria.Thank you for reading this post, don’t forget to subscribe!

Contrary to media reports, Jada clarified that rather than leaving the country, IOCs are strategically divesting into deeper waters and selling off offshore operations. He emphasized that these companies have a longstanding presence in Nigeria, spanning decades, during which they have played a significant role in developing local capacity and transferring technology to Nigerians.

During a televised interview in Lagos, Jada highlighted that IOCs are shifting their focus towards cleaner and more sustainable energy sources, particularly gas exploration in deeper waters within Nigeria’s oil and gas industry. He noted that companies like Shell are reducing investments in hydrocarbons to prioritize environmental concerns, aligning with global efforts to mitigate emissions and promote environmentally friendly energy sources.

Moreover, Jada expressed confidence in Nigeria’s ability to manage onshore downstream petroleum operations, emphasizing the government’s commitment to enhancing the ease of doing business. He cited ongoing discussions with key government officials to improve the efficiency of special economic zones, aiming to attract more investment and bolster infrastructure development.

In terms of specific investments, Jada mentioned that major companies like Shell and Total are actively involved in transitioning to cleaner energy solutions. These companies have pledged substantial investments in gas production, signaling their endorsement of the government’s economic policies and commitment to sustainable development initiatives.

Overall, Jada’s remarks underscored the continued presence and investment of IOCs in Nigeria’s energy sector, highlighting a strategic shift towards cleaner energy sources and technology transfer to support the country’s economic growth agenda. source naija247news.com

Govt extends export benefits under the Rodtep scheme to SEZ units.

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The government on Friday extended export benefits under the RoDTEP scheme to companies in the special economic zones (SEZs) and export-oriented units (EOUs).
The commerce ministry said that amid global economic uncertainties and supply chain disruptions, extending RoDTEP benefits to the uncovered sectors like AA (advance authorisation), EOUs, and SEZ units will help the exporting community in handling the international headwinds.
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“The government has announced the extension of the RoDTEP scheme support to additional export sectors i.e. Advance Authorisation holders, Export Oriented Units and Special Economic Zones export units,” the ministry said.
This decision comes in recognition of the significant contribution these sectors make to India’s exports, constituting about 25 per cent of the total shipment The government, in August 2021, announced the rates of tax refunds under the export promotion scheme — Remission of Duties and Taxes on Exported Products (RoDTEP) — for 8,555 products like marine goods, yarn and dairy items.
As SEZs and EOUs were kept out of the scheme in the list notified at that time. The industry was demanding to include them in the scheme.
Under RoDTEP, various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates are in the range of 0.3 per cent to 4.3 per cent.
Since its inception in January 2021, the scheme has already provided support amounting to Rs 42,000 crore to more than 10,500 export items, the ministry said.
“In the current financial year, the scheme has a budget of Rs 15,070 crore with an additional increase of 10 per cent in 2024-25,” it said adding that “keeping budgetary allocation in view, the extension of the scheme to additional sectors is presently till September 30, 2024”.
The extension is aimed at enhancing India’s export competitiveness in international markets.
Key sectors, such as engineering, textiles, chemicals, pharmaceuticals and food processing, stand to benefit from the measure.
The primary goal of RoDTEP is to refund taxes and duties that are not rebated under any other scheme. This includes various central, state, and local duties/taxes/ levies that are incurred in the process of manufacturing and distribution of exported products but are not refunded through schemes like GST (Goods and Services Tax) or Duty Drawback scheme. source business standard.com

Investment opportunities in the Lagos free zone: Sectors on the rise

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The Lagos Free Zone offers top-tier infrastructure and strategic advantages for Nigerian market investors.

By Tejaswi Avasarala

By Tejaswi Avasarala
Nigeria, Africa’s largest country, is rapidly establishing itself as one of the most promising business locations globally. Nigeria’s promising economy boasts numerous sectors that are ripe for development and investment. In this article, we’ll delve into the burgeoning business opportunities in Nigeria and provide valuable insights on how to thrive in its dynamic business climate, whether you are an experienced trader, manufacturer, or investor looking to make a strategic entry.

One interesting way new investors can access the best of the Nigerian market is through special economic zones, such as the Lagos Free Zone (LFZ). LFZ, which was established in 2012, is an 850-hectare state-of-the-art private free zone in Nigeria. Integrated with Nigeria’s deepest seaport, Lekki Port, LFZ is positioned as the premier investment destination in the region, attracting local and international investors with a deployed investment of USD 2.5 billion. Offering world-class infrastructure, facilities, and services, LFZ boasts a self-sustaining ecosystem for business operations, including grade-A warehouses, industrial factories, serviced apartments, and a comprehensive array of amenities. With its strategic location in the Lekki Industrial Corridor and a single-window clearance system, LFZ presents unparalleled ease of doing business, unlocking vast economic opportunities for foreign investors in Nigeria and West Africa.
Among the most promising sectors in Nigeria are agriculture and agribusiness. Nigeria boasts vast fertile land and a large young population, perfectly positioning it to become an agricultural powerhouse. According to the World Bank, agriculture employs about 70 percent of Nigeria’s population and contributes approximately 23.7 percent to the country’s GDP. With a diverse range of agricultural products, such as cassava, yams, rice, cocoa, sesame, and palm oil, Nigeria presents abundant opportunities for investors in the agribusiness sector.

The Lagos Free Zone provides an ideal location for investors to capitalise on these opportunities. Situated on the Lekki Peninsula, it provides access to premium facilities, land, easy access to energy, security, logistics solutions, and a sizable consumer market, all of which create a conducive environment for agribusinesses to thrive. The strategic location of the Lagos Free Zone favours the establishment of processing plants and export hubs, enabling companies to tap into international markets effectively.

Oil and solid minerals

Nigeria’s economy is heavily reliant on manufacturing and industry, with abundant natural resources such as oil, gas, and solid minerals fueling various industrial sectors. There are over 44 mineral types, including gold, coal, and limestone, found in more than 500 locations across Nigeria, presenting lucrative opportunities for investors in the mining and manufacturing sectors.

Solid minerals are one of the priority growth sectors, and to that end, the Nigerian government has established the Nigerian Solid Minerals Development Fund to finance mining projects in the country, further incentivizing investment in this sector. Technology and innovation

Nigeria’s technology and innovation industry offers exciting opportunities for investors, particularly in sub-sectors such as smart tech, fintech, e-commerce, and software development. With a youthful population eager to embrace technological advancements, Nigeria presents a fertile ground for tech startups and companies. The government’s initiatives, such as the National Information and Communication Technology Policy, aim to transform Nigeria into a knowledge-based economy, fostering innovation and entrepreneurship. The burgeoning fintech sector, driven by the widespread adoption of smartphones and digital payment services, presents significant opportunities for investment. Additionally, Nigeria’s growing middle class and increasing internet penetration rate fuel the expansion of e-commerce, creating a vast market for online retail businesses.

Energy and power

Renewable energy presents a significant investment opportunity in Nigeria, with abundant resources such as solar, wind, and biomass. Even though Nigeria is the world’s 15th largest supplier of crude oil, the country aims to diversify its energy sources and promote sustainable practices. The Nigerian Electricity Regulatory Commission (NERC) encourages investment in green energy production to reduce reliance on fossil fuels and mitigate environmental impacts. Amongst industrial parks in Nigeria, Lagos Free Zone is spearheading the transition to a cleaner energy landscape, with initiatives such as rooftop solar systems and gas-fired generating systems fueling the zone. By leveraging renewable energy sources and innovative technologies, LFZ aims to reduce its carbon footprint and promote sustainable development.

Industrial infrastructure

The real estate and construction sector in Nigeria is experiencing rapid growth, driven by infrastructure development and urbanisation. The Lagos Free Zone, which is a premier industrial park, hosts global brands and provides premium facilities to meet the growing demand for commercial and industrial space. We are proud to serve global brands like BASF, Kellogg’s, Colgate, Arla, Dufil, and Lekki Port, amongst others, as our current tenants.

While the Lagos Free Zone provides the infrastructure, facilities, and services for investors in the zone, legislation such as the Nigeria Export Processing Zones Act (1992) provides significant tax incentives and preferential policies to encourage the expansion of industries, driving economic growth and diversification away from reliance on oil exports. Conclusion

Nigeria’s diverse economy and abundant resources present a myriad of investment opportunities across various sectors. The Lagos Free Zone, with its strategic location and conducive business environment, serves as an ideal gateway for investors seeking to capitalise on Nigeria’s economic potential. By tapping into sectors such as agriculture, manufacturing, technology, energy, and real estate, investors can contribute to Nigeria’s growth story while achieving significant returns on their investments. source: businessday.ng

We go nowhere’ – Shell refutes speculation of leaving Nigeria after meeting Bamanga Jada, MD oil and gas free trade zone

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Shell PLC has denied speculations that it was leaving Nigeria after selling its onshore business in the Niger Delta.

Contrary to claims making waves on social media, Shell, an international energy and petrochemical company, is selling its onshore business in Nigeria but is not leaving the country,

In a meeting with the Managing Director and Chief Executive Officer of the Oil and Gas Free Zones Authority (OGFZA), Alh Bamanga Jada, the Shell management team said it intended “to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy.”

Jada received the delegation from Shell Nigeria Gas (SNG) and Shell Energy Nigeria on a courtesy call on Thursday, 8th February, at the authority’s office in Maitama, Abuja.

The Managing Director of Shell Nigeria Gas, Mr. Ralph Gbobo stated in the meeting that SNG’s main business is downstream gas distribution to industries in Nigeria with a presence across the nation at Otta, Aba and Port Harcourt and currently penetrating Bayelsa state. He also stated that there is an ongoing effort to collaborate with the government of Oyo state.

He further disclosed that SNG currently distributes about 60-70 million scuffs daily, hinting to the OGFZA boss and management that SNG is now diversifying into offshore activities and gas distribution.

While announcing the changes in its Nigerian business structure, the company said, subject to following regulatory approvals, it would sell Shell Petroleum Development Company of Nigeria Limited (SPDC).

The onshore business is to be acquired by Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group. The companies are ND Western, Aradel Energy, First Exploration and Production (First E&P), Waltersmith, and Petrolin.

The SPDC is the operator of the NNPC/SPDC/Total Energies/NAOC joint venture, which comprises Nigerian National Petroleum Company Limited (55 per cent holding), SPDC (30 per cent), Total Energies (10 per cent), and the Nigerian Agip Oil Company Limited (5 per cent).

The delegation, however, made a case for the removal of bottlenecks for accessibility to enable them to carry out their enumeration exercise in the Onne/Ikpokiri Oil and Gas Free Zone in Rivers State.

Responding to the delegation, the OGFZA boss assured them of the authority’s readiness for collaboration, stating that OGFZA is responsible for promoting, securing and sustaining investments in the nation’s oil and gas-free zones.

He urged them to explore other gas hubs in the Oil and Gas Free Zones such as Liberty Oil and Gas Free Zone in Akwa Ibom State and Orashi Energy City in Imo state which has recently been declared a free zone under the regulation of OGFZA by President Bola Ahmed Tinubu.

He said the newly declared free zone is the largest in Nigeria with a land mass of over 140,000 hectares and a huge gas deposit. He further disclosed that Orashi Energy City has the potential to attract over US$8b of Foreign Direct Investment.

Jada then assured the visiting delegation of the authority’s commitment to remove all bottlenecks that might cause a hindrance to ease of doing business in the zones, adding that the Authority would continue to provide a conducive environment for investors operating in the zones.

Jada applauded SNG for their interest in committing more resources and investments into Nigeria and their confidence to partner with OGFZA. He clarified the notion that investors are exiting Nigeria to neighbouring countries, affirming that investors are not leaving Nigeria but rather diversifying and making new investments into more environmentally friendly energy sources, stating that gas is very critical to national development.

The OGFZA helmsman on behalf of President Bola Ahmed Tinubu and the Honourable Minister of Industry Trade and Investment, Dr. Doris Uzoka-Anite, assured the investors of the protection and security of their investments in Nigeria.

Meanwhile, in a bid to ensure additional investment in the oil and gas sector thereby driving the ‘Renewed Hope mandate’ to expand investment and also create jobs to help ease the unemployed population in Nigeria, Jada through his agency has secured a massive investment in the energy, Oil and gas sector with the introduction of APM Terminals Global who is currently constructing a $112 million state-of-the-art facility with an addition of $500 million over the next four years to boost operational efficiency and drive standard delivery in capacity and also create over 1.8million direct and indirect jobs.

This was made known at a meeting hosted by the Honourable Minister of the Federal Ministry of Industry, Trade, and Investment; Dr Doris Uzoka-Anite, on Thursday, 8 February, at the Bank of Industry head office in Abuja.

Also in attendance was Mr Olasupo Olusi, the Managing Director of the Bank of Industry; Emmanuel Nwagwu, COO of Nesgas; Frederik Klinke, COO of APM Terminals Nigeria; Keith Svendson, CEO of APM Terminals Global; Bamanga Usman Jada, MD/CEO of the Oil & Gas Free Zone Authority and a host of others.

APM Terminals Global further pledge its commitment to breathe fresh life into the oil and gas sector in support of the industrialization quest of Nigeria and also to boost local production of Oil and gas to attract Foreign Direct Investment FDI and save forex.

While addressing the meeting, Bamanga disclosed that investments and job creation in Nigeria’s oil and gas industry is something of high interest and it will also drive employment for 900,000 skilled and unskilled workers.

He disclosed that; “The Special Economic Zones have become magnets for Foreign Direct Investment FDI, thanks to Mr President’s unwavering support for enhancing productivity and building a resilient and sustainable economy.”

He further stated that other massive investments are ongoing in the oil and gas sector with the addition and construction of a 50,000 metric ton storage facility by Nesgas LPG which will be a game changer in both domestic and international LPG markets.

“The construction of this facility is projected to create over 100,000 direct employments and help launch 500,000 enterprises. This venture underscores the untapped opportunities across Nigeria and Africa and positions Nigeria as a key player in the global gas supply chain.” He said.

Dr Uzoka-Anite also applauded and welcomed their unwavering dedication to the massive growth by injecting life and hope into the Nigerian economy as she said it’s a clear demonstration of sharing the same vision to ensure more investors see Nigeria as a destination for investment with massive Return on Investment ROI due to the large population and enormous availability of natural resources in commercial quantity.

She also disclosed her readiness and that of the government to assist when the need arises.

“Our administration is committed to making doing business seamless. With our policies thereby expunging all bottlenecks, I am more than sure that in the next few months, the surge in investment in Nigeria will be on the rise. We are committed to making the ease of doing business work in Nigeria,” she stated.

Speaking on behalf of Alternative Petroleum Power Limited (APPL), Mr Emmanuel Nwagwu harped on the value of green energy. He spoke about the achievements of APPL, which is expected to export 520 metric tons of green and blue hydrogen and generate 300,000 jobs directly and indirectly.

Mr Keith Svendson disclosed that the nearly $100 million in investments that APM Terminals has made in the port infrastructure of Nigeria will assist towards sustainable energy solutions which will tap into Nigeria’s enormous natural gas reserves. He also stressed the need for the government to ensure a total overhauling and upgrade of Apapa Ports as it would enhance commercial and economic growth thereby attracting additional investment into the country. Posted by: Imo Udokang, source ogfza.gov.ng

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