Sani dangote ppt new

IN COLLABORATION WITH

WHY AFRICA

UNDERLYING POTENTIALS IN AFRICA •

AREA OF UNCULTIVATED ARABLE LAND IN SUB-SAHARAN AFRICA TODAY:

200 million hectares •

THIS REPRESENTS

50% OF UNCULTIVATED ARABLE LAND TODAY

Source: World Bank, DB Research

AFRICA ON THE MOVE… AFRICA Today

AFRICA Tomorrow

• $1.6 Trillion

•$2.6 Trillion

Africa’s collective GDP

Africa’s collective GDP in 2020

•Over $900 Billion

•$1.4 Trillion

Africa’s combined consumer spending.

•Africa’s combined consumer spending in 2020.

1 billion

•Currently about people live in Africa

•Today, around 1/3rd of SSA’s population lives in urban areas

•1.2 billion people will live in Africa by 2025

•By 2035, about

1/2 of its

population will live in urban areas Source: McKinesy and Company

Land -Water- Agriculture - Urbanization

Source: FAO, World Bank

AFRICA AGRICULTURAL IMPORTS

In 2011, SSA imported $43bn worth of agricultural commodities

.

During the 2007-08 food crisis when rice and wheat prices reached record highs, several African countries experienced riots.

Wheat, Rice, Oil Palm & Sugar ACCOUNT for

40% of total IMPORTS in 2011

Source: World Bank

AFRICA: Imports Vs Exports

Source: World Bank

NIGERIA TOTAL 36 State

LARGEST ECONOMY IN AFRICA

Population: 170Million +

Nigeria Ecology, Soil & Climate •

Nigeria General Rainfall precipitation range: 500mm (North) – 4000mm (South) Temperature Variance: 17°c - 38°c+

•

Ecological Zones, Soil Types, Rainfall & Potential of Areas – They are 4 Soil types classified by 3 associated (climatic) zones – ACROSS 3 Main Regional Belts 1.

Northern Zone: – Belt Divide: Arid / Semi-Arid & Northern Guinea / Southern Guinea Savannah – Soil: Sandy soils – Temperature: 20°c - 38°c – Rainfall: 500mm – 1500mm – Potentials: Feedstock, Tomato, horticulture, rice etc Source: FAO

Nigeria Ecology…

2.

3.

Middle Belt Zone: Interior zone of laterite soils / Derived Savannah Climate – Soil: laterite soil – Temperature: 21°c - 35°c

– Rainfall: 1000mm – 2500mm – Potentials: Cassava, Rice, Horticulture, Citrus etc..

Southern Belt Zone – – – –

•

Belt Divide: Arid / Semi-Arid & Northern Guinea / Southern Guinea Savannah Temperature: 20°c - 38°c Rainfall: 1500mm – 4000mm+ Potentials: Feedstock, horticulture, rice, millet,

Special Zones – Alluvial soils Zones • Soil: Alluvial • AREA: Water lying areas, Altitude of 1,200m+ • Rainfall: 2000mm – 3000mm+ • Temperature: 21°c - 38°c • Potential: Oil Palm, Banana’s, Plantains, Cocoa, Rubber, Pineapples etc –

Mid-Altitude Region • AREA: JOS / TARABA / ADAMAWA STATE • Climate: Tropical Savannah • Rainfall: 1400mm – 1800mm+ • Temperature: 11°c - 25°c • Potential: Tea tress, Potatoes, Lettuce & Vegetables etc

SOIL TYPES ACROSS THE BELTS

RAINFALL PER ANNUM

SOURCE: FAO

KANO CASE STUDY •

The North savannah lands represents 80 % of the vegetation zones.

•

Kano is one of main Agricultural hubs

•

Infrastructure – New 33Kv Power lines – Challawa Gorge Dam: 930millions of cubic metres, covering 10,117 hectares – DAWANAU Market: largest grain market in West Africa, 64million cubic meters of grain storage capacity This area is great for – Tomato - Livestock - Horticulture - Groundnut – Rice - Maize - Sorghum - Millet cowpeas Neighboring Potentials – Cotton - Gum Arabic

•

•

Source: FAO

INFRASTRUCTURE AND INITIATIVES • 17 DAMS ACROSS 12 STATES • CO-OPS – FADAMA Farmers association

• SCHEMES & INITIAVES – WORLD BANK Sponsored FADAMA Farmers Association

• Nigeria imports Avg $150Billion foods Source: FAO

MAP of NIGERIA’S AGRO-ECOLOGICAL ZONES

Source: FAO

FINANCIAL OUTLOOK

NIGERIA CURRENTLY

NIGERIA BY YEAR 2035

$510 billion 24% of GDP is from  GDP of

agriculture

$1.6

trillion  Agriculture is

40% of

GDP

40 million

160 million

Nigerians in consumingclass households

130 million

 almost live below the Empowerment Line

 GDP of more than

Nigerians in consumingclass households

120 million Nigerians to move above the Empowerment Line

Source: World Bank

NIGERIA ‘NUMBER 1’ Nigeria is ‘’Number 1’’ Destination for FDI in Africa Key Takeaways Nigerian FDI vs. Other Sub Saharan African Countries Measure: % of 2011 FDI

Nigerian FDI vs. Other West African Countries Measure: Billion of USD

Source: Mckenzie

•

Nigeria accounts for 50%+ of all FDI in West Africa



Globally Nigeria ranked 23rd in Foreign Direct Investment inflow.



In 2011, Nigeria BECAME leading FDI destination in Africa: as a result of improved investment policies e.g., Privatization of the power sector, ATA,SCPZ

ECONOMIC AND POLITICAL STABILITY IN NIGERIA CHALLENGES NOT A PROBLEM

Despite challenges posed by localized security challenges e.g. Boko Haram, Corruption, etc, Nigeria remains Africa’s largest democracy, with a stable 3 tier federal government system Source: Mckenzie

OPPORTUNITIES & CHALLENGES

AGRO AND AGRO PROCESSING IN NIGERA

CURRENT CHALLENGES

POTENTIAL OPPORTUNITIES

INCENTIVES

Unorganized farmers

170m+ population (2.8%) Annual growth rate Over 53% of working class Nigerians are farmers living in the Rural Areas.

FADAMA Initiatives by World Bank helping to organize farmers into selfformed cooperatives

Low Agricultural Yield

Availability of Fertile arable land (84 million ha ) and abundant water resources over 200billion cubic metres of water

Partnership with Syngenta, Dupont and Other Agro Input Companies by Min. of Agric

Poor Road Network and Unavailable Power Supply

Post Harvest Losses and Lack of Storage Facilities

Creation of Staple Crop Processing Zones to bridge infrastructural deficit in Rural Areas SCPZ facilities, Increased Value addition and Processing Capacities

Inadequate funding and high interest rates

CACs NIRSAL Bank of Agric

Land Policy

99years Leasehold agreement

Single Digit Funding

POLICIES

A T A

INITIATIVES DRIVING POLICY

PRIVATE FIRMS LEADING THE WAY NIGERIANAGRIBUSINESS GROUP STAPLE CROP PROCESSING ZONE

INCENTIVES

• Single digit loan for 10yrs+ • 3 New privately owned fertilizer plants of (5mill Tonne /annum) • Available quota for expatriates • 100% Dividend Repatriation • 99 years leasehold • INVESTMENT FRIENDLY: 0% Tax • 100% Business ownership

Source: Ministry of Agriculture

ECOWAS REGION: POTENTIAL NIGERIAN MARKET

KEY CROPS RICE COTTON MAIZE COCOA OIL PALM HORTICULTURE

Population 340MILL+ Combined GDP: $1,322BILL+

ECOWAS / WEST AFRICA

Source: ECOWAS Source: Ecowas

AGRO PROCESSING… • Processed foods, beverages, fruits & vegetables represent over 80% value of Global food markets.

• Activities can provide farmers or SME ability to expand and have access to higher-value markets

• Nigeria expects USD 1.5 for agriculture in 2014.

bn of foreign investment

KEY ADVANTAGE  Available land  fast-growing consumer markets Source: World Bank

NIGERIA PRINCIPAL CROP DATA WHEAT DATA 4,500,000.00 4,000,000.00 3,500,000.00

Tonnes/annum

3,000,000.00

Production

2,500,000.00

Consumption

2,000,000.00

Imports

1,500,000.00 1,000,000.00 500,000.00 2011/12

RICE DATA

2012/13

2013/14

6,000.00 5,000.00

Tonnes/annum

4,000.00

Production

3,000.00

Consumption Imports

2,000.00 1,000.00 2011/12

2012/13

Source: USDA

2013/14

NIGERIA PRINCIPAL CROP DATA OIL PALM 1,600,000.00 1,400,000.00 1,200,000.00

Tonnes/annum

1,000,000.00

Production Consumption

800,000.00

Imports

600,000.00 400,000.00 200,000.00 2011/12

SUGAR

2012/13

2013/14

1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00

Tonnes/annum

Production Consumption

800,000.00

Imports

600,000.00 400,000.00 200,000.00 2011/12

2012/13

Source: USDA

2013/14

A-T-A Agricultural Transformation Agenda •A Federal Government initiative •Designed and implemented by the Ministry of Agriculture and Rural Development •Allows for private-led Agri-business companies to maximize the agricultural value chains •The Government will create an enabling environment for its successful implementation Source: Ministry of Agriculture

A-T-A GOALS

INCENTIVES -

Substituting import Implementation of the SCPZ plan Attract Major Investors in to Agriculture

Introduction of tariffs/higher duties on Agricultural imports - CBN Intervention scheme/BOI: Access to long-term single digit loans - Steady and reliable power supply - Ready available talent - Dry port: easier and faster to clear goods

Source: Ministry of Agriculture

-

-

Value Addition minimize the impact of local currency depreciation Add $4Bill+ to economy/ CREATE 100,000 - 250,000 Cost effectiveness of food processing Full Investment commitments made by: Flour Mills of Nigeria, Dangote Group, Syngenta, Indorama, AGCO, Belstar Capital, and other companies

Staple Crop Processing Zones: Locations and Value Chains Master Plans: completed 7 Model SCPZ sites/corridors across five value chains, with plans to expand

Sokoto Katsina Kebbi

Jigawa

Yobe

Zamfara

Borno

Kano

Bauchi

Kaduna

SCPZ Value Chains Gombe

Niger

Adamawa

Horticulture

Cassava

Sorghum

Fisheries

Livestock (To be added)

Plateau

FCT

Kwara

Rice

Nassarawa Oyo Osun Ogun

Taraba

Ekiti Kogi

Ondo

Benue

Enugu Edo

Lagos

Anambra Delta Bayelsa

Cross Ebonyi River

Imo Abia Rivers

Akwa Ibom

Model SCPZ State Locations Priority SCPZ State Locations with Completed Master Plans

Potential Additional SCPZ State Locations for Livestock

Source: Ministry of Agriculture

DANGOTE PROJECTS

DANSA AGRO ALLIED PLANTION PINEAPPLE PROJECT Planted about 27,000 tonnes of Smooth Cayenne pineapple on 300 hectares of land.

About 1 million units of MD2 pineapple suckers have been imported and planted in the nursery area as a trial, prior to the commencement of commercial planting in mid 2014.

Installed Capacity of the Pineapple Processing plant is 80Tonnes per day. Expansion plan for the Factory will take its capacity to 400Tonnes daily.

DANGOTE TOMATO PROJECT (DANGOTE FARMS)  Single largest tomato paste factory in Africa  Projects • •

1,200 tonnes (cpd) tomato processing plant: CONSTRUCTION Ultra-modern 120 million seedling capacity greenhouse

UNDER

 Targets •

Produce fresh and processed tomato products (i.e. paste, purée, etc.)

 Location: Kano State, Kadawa Area  Access • • •

26,000 hectares+ of irrigated land 33kV Power Line Kano – Kaduna High Way

Investment & Payback

This investment will substitute import years.

within it’s the First 3

TRANSFORMING AGRICULTURAL VALUE CHAIN IN TOMATO

CURRENT LOCAL PRACTISE

NEWLY INTRODUCED IMPROVED METHODS

TOMATO PROCESSING PLANT

•

DANSA AGRO ALLIED PLANTATION: OIL PALM PROJECT Location: Cross River State, Nigeria.

•

Area:

•

Stage of Development: Planting and continuous land preparation

•

Milestones: –

•

50,000 hectares

established 1000ha nursery which was given out to out-growers at the secondary stage of the Nursery(Ready to plant Seedlings)

Additional 100,000 hectares of Oil Palm farm-land establishment is ongoing

VALUE ADDITION IN OIL PALM

• Projected Production: » Peak Yield 1.5 million MT of Fresh Fruit Bunches » Palm Oil Refinery 400 MT/ day » Out-grower Scheme

INTEGRATED SUGAR REFINERY  Location  Across 4 States  Area : 250,000HA     

Capacity Sugar : 2,000,000 Tons Ethanol : 200 million Litres Cogeneration : 650 MW Animal feed : 500,000 Ton

Estimated cost  Factory $1Billion  Plantation $800 million

 Employment Potential Plantation  Permanent 50,000  Seasonal 150,000 • Factory  Permanent 10,000  Seasonal 10,000  General Administration 5,000  Out-growers Employees 100,000

DANGOTE RICE  Location:  Area : 150,000 ha 

Capacity  Paddy Rice: 1,500,000 Tons  Milled Rice : 1,000,000 Tons  Rice bran

 Co-generation to meet factory energy demands

Project cost:  Factory $1Billion  Plantation $850Million  Admin $50Million

   

Employment Potential Out-growers:  60,000 (30% of farmers) Plantation Permanent 6,000 Seasonal 15,000

Factory  Permanent 5,000  Seasonal 5,000  General Administration 1,000

AFRICA – NIGERIA: LAND OF ENDLESS POSSIBILITIES

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