An investor's guide to kwara state
www.kwarastate.gov.ng www.tradeinvestnigeria.com
KW AR
TradeInvest Kwara
A
TE GOVE STA R ENT NM
2010/11
NIG E RIA
Dear Investor,
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wara State is open for investment and this information brochure has been specially designed to assist you in realising your objective of investing in our state. The publication is intended to equip you to take quick industrial and commercial decisions on your projects. It highlights the state’s potential in terms of its abundant natural resources in the form of overviews of the various key economic sectors, as well as providing details of specific investment opportunities in these sectors. You will also find guidance as to the steps you should take to ensure a smooth take-off of your business ventures in the state. The Kwara State Government, in its effort to stimulate the overall development of the state, is committed to creating an enabling environment for investors and has introduced a number of incentives. These include assistance with obtaining land, the provision of all required infrastructure (roads, electricity, water) and various tax incentives. Details of these incentives are also provided in this brochure. It is our hope that you will find this investors’ guide most beneficial as you plan your investment strategy into Kwara State.
His Excellency Dr Bukola Saraki Governor, Kwara State 1
TradeInvest Kwara 2010/11
TradeInvest Kwara 2010/11 www.kwarastate.gov.ng www.tradeinvestnigeria.com
Introduction
Kwara State – open for business
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Message from the Governor, His Excellency Dr Bukola Saraki
Welcome to Kwara State – The State of Harmony
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Kwara State’s peaceful population, natural resources, infrastructure and proactive investment-attraction policies make it an attractive destination for investors
An excellent investment destination Kwara State is the only Nigerian state to have received two consecutive positive ratings from ratings agency Fitch
New investors in Kwara State
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A number of private-sector companies have successfully invested in Kwara
Doing business in Kwara State
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Kwara State welcomes investors with a comprehensive set of policies and guidelines
Growth of commercial sector infrastructure
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Three key facilities are set to improve the commercial landscape in Kwara State
Sporting facilities
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Kwara State is pursuing sporting excellence through the establishment of world-class facilities
Firm foundations for investment
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Kwara State offers excellent supporting infrastructure aimed at creating an environment that is conducive to investment and business
Power generation in Kwara State
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Kwara State’s reliable power supply is creating a favourable environment for investors and business
Ilorin International Airport Cargo Terminal
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The Cargo Terminal at Ilorin International Airport will provide a huge boost for importers and exporters
Economic sectors Agriculture
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With vast areas of arable land and good supporting infrastructure, Kwara State’s agriculture sector offers many investment opportunities
Case study: The New Nigerian Farmers
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Kwara State’s New Nigerian Farmers initiative is spearheading an agrarian revolution in the state and nationwide
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Industry and solid minerals
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Generous natural and mineral resources, good power supply and a progressive government have laid the foundations for the industrialisation of Kwara State
Case study: Furniture manufacturer invests in Kwara
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An investment by a South African company in a furniture factory bears witness to what is possible in Kwara State’s manufacturing sector
Infrastructure
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Kwara State offers a range of business and investment opportunities in the provision of infrastructure
Property development Property developers are capitalising on the Kwara State success story
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Housing Private-public partnerships in housing development in Kwara State offer excellent opportunities to private investors
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Education Education in Kwara State is focused on providing students with real skills that can be utilised to boost economic growth
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Healthcare Kwara State Government is committed to providing high-quality healthcare to its citizens
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Tourism
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Kwara State has a large number of tourist sites that can be further developed by investors
Case study: Asa Dam Conference Centre and Resort
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The Asa Dam Conference Centre and Resort is an exciting multi-purpose development that provides a unique mix of hotel and private accommodation with plentiful commercial and retail opportunities
TradeInvest Kwara www.kwarastate.gov.ng
TradeInvest Kwara is published by Africa Investment Publishing Special project advisor (Kwara State) Fela Ibidapo, Special Assistant to the Executive Governor on Investment Editorial and production Project manager (Nigeria): Raymond Obialo Contributor: John Young Photographs: Jaco Maritz, Raymond Obialo, Kwara State Government, Matthew Bowden Map: Nicole Bannister Design and layout: Indio Design Administration Managing director (SA): Clive During Publishing director: Chris Whales Distribution: Julie Kirby Printing: CTP
Africa Investment Publishing Ltd (Nigeria) Company registration number: 685785 Address: 4th Floor, Adamawa Plaza, Plot 1099, 1st Avenue, Central Business District, Abuja, Nigeria Tel: +234-9-523 1409 Fax: +234-9-523 1437 Africa Investment Publishing (Pty) Ltd South Africa company registration: 2003/024/127/07 Address: Sunclare Building, 21 Dreyer Street, Claremont, Cape Town, South Africa Tel:+27 21 657 6200 (South Africa) Fax: +27 21 674 6943 (South Africa) Directors: Richard Pembroke, Clive During, Chris Whales www.tradeinvestnigeria.com Copyright: TradeInvest Kwara is an independent publication published by Africa Investment Publishing. Full copyright to the publication vests with Africa Investment Publishing. No part of the publication may be reproduced in any form without the written permission of Africa Investment Publishing. Disclaimer: While the publisher, Africa Investment Publishing, has used all reasonable efforts to ensure that the information contained in TradeInvest Kwara is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness or completeness of the information. Africa Investment Publishing will not accept any responsibility for the loss or damage suffered as a result of the use of any reliance placed on such information.
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The Olam Nigeria cashew-nut processing facility at Ogbondoroko is one of the high-profile investments that Kwara State has attracted in recent years.
The State of Harmony Kwara State’s peaceful population, abundant natural resources, well-developed infrastructure and proactive investment-attraction policies have made it an attractive destination for investors.
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wara State is one of the 36 states that make up the Federal Republic of Nigeria, Africa’s most populous country. Kwara State shares a boundary to its west with the Republic of Benin and has as its northern boundary, the Niger River. The capital city of Ilorin is situated 306km inland from the coastal city of Lagos and 500km from the federal capital, Abuja. Major towns include Offa and Jebba, located on the Niger TradeInvest Kwara 2010/11
River. Other towns include Patigi, Erin-Ile, Iloffa, Adeleke Igbewere, Ejidongari, Osi, Lafiagi, Gure, Afon, Kaiama, Isanlu-Isin, Omu-Aran, Egbejila, Ilota, Iponrin and Igbaja. Kwara State was created in May 1967, as one of the first of 12 states to replace the nation’s four regions. Originally the state was known as West Central State but the name was changed to Kwara, a local name for the Niger River. The size of the state has been reduced over the years, as new states have been created within the
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federation. The total landmass of Kwara State today is 32 500 square kilometres. Kwara State is known as ‘The State of Harmony’ on account of the peaceful relations that exist among its multicultured and diverse population of about 2.5 million people. Followers of the three great religious faiths to be found in Nigeria, Islam, Christianity and traditional, coexist within the state. Governor Bukola Saraki of the People’s Democratic Party began his first term of office in 2003 and won re-election in 2007. He is a
medical doctor with extensive experience in financial controls and budgeting. After qualifying and working as a doctor in the UK (Cheltenham College, London Medical Hospital college and University of London), he began working at Societe Generale Bank in 1989. He worked for two years as Special Assistant to the President of Nigeria on the budget and chaired a national committee on non-oil revenue generation. For his work as Executive Governor of Kwara State, Governor Saraki has won several awards, including Best
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INTRODUCTION a
gor nta
Ko
Kainji Reservoir
Tegina
Wawa Yashikera
BENIN
Zungeru
Kaiama
Kosubosu
Eban
u Ek
i
h Tes
Okuta
Mosi
NIGER STATE
er ig N
Jebba
Ogudu
Ilesa
Gbararo
Mokwa
KWARA STATE
Kisi
Likpata
n
u Aw Igbeti
Share Alapa
Ago-Are
Ofiki Road
Ideji
Lafiagi Pategi
Igporin
Panpo
North-South Road
Bida
Bode-Shadu
Kukaragi
Ilorin
Erufu
Oke-Odde
fe O
Igbaja
OYO STATE Ajasse Ogbomoso
Railway
Ofa
Egbe
Okuku
KOGI STATE
River
Ilorin
Capital Airport
OSUN STATE
EKITI STATE Osogbo
Governor in Africa, presented by the Kenneth Kaunda Foundation in 2006. States in Nigeria enjoy a high degree of autonomy. Each state, for example, can set industrial policy and independently seeks to attract investment. This is normally located within a broader national policy and must naturally comply with federal rules (with regard to import duties, for example). Energy policy is the sole preserve of the federal government although this is changing as the option of using Independent Power Producers (IPP) becomes more attractive. Each state is divided into Local Government Areas (LGAs) and, in the case of Kwara, there are 16 such LGAs.
Omuo
Kabba
of the Niger River which run through hills and valleys, none of which rise to any great height. The western section of the state is at a slightly higher altitude than the eastern. This is a summer rainfall area, with an annual rainfall range of 1 000mm to 1 500mm. The months of December and January coincide with the cold and dry harmattan period. Average maximum temperatures vary between 30°C and 35°C.
Logistics Kwara’s central location has resulted in it sometimes being called the ‘Gateway’ state. Ilorin International Airport has undergone major upgrades and is now not only a passenger airport but a major cargo hub. Not only is Kwara State well situated within Nigeria, with connections south to the key harbour of Lagos and to the capital city of Abuja to the north-east, but it is well sited regionally within West Africa and within a relatively short international flight
Geography Kwara State comprises rainforest in the southern parts with wooded savannah covering the larger part of the state. The soil is fertile and the state is well watered by the various tributaries TradeInvest Kwara 2010/11
Isanlu
Omu-Aran
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INTRODUCTION
from Europe and the US. There is an extensive network of well-maintained roads. Kwara is working on maximising its potential through the building of truck stops and logistics hubs. The Jebba Dam is an important source of water and hydro-electric power.
be in Europe within hours. This again opens up many other potential avenues to be explored, for example, in the cultivation and exportation of cut flowers, a very lucrative enterprise.
People, skills and culture The principal groups residing in Kwara State are the Yoruba, Nupe, Bariba and Fulani. The skilled craftsmanship of the people of this central region has been evident for centuries. The largest and most important pottery workshops in Nigeria can be found in the capital city of Ilorin. Proponents of the craft of traditional textile weaving are also very prominent: the Aso Oke style of hand-loomed cloth-making is world renowned. The Yoruba are the largest population group in the south-western part of Nigeria while the Fulani comprise a significant proportion of the population of the north. Former Nigerian president Olesegun Obasanjo is a Yoruba; former president Umaru Yar’Adua was a Fulani. The Yoruba stem from an ancient civilisation, the Oyo Empire, that came into existence in the eighth century with its headquarters in Ife, in what is now the neighbouring state of Osun. Historian Robin Hallett has described the bronze and
Unique selling point Kwara State is known for its peaceful character, its innovation and its strong educational sector. In recent years it has come to be known as the home of commercial agriculture, as a result of the New Nigerian Farmers initiative. Also known as the Shonga project, after the name of the town close to where the commercial farming is being practised, the New Nigerian Farmers initiative has got Nigerians and foreigners talking about Kwara State in a new way. Kwara State has changed in the public eye from being a ‘civil service’ state to being the state where the Shonga farmers are succeeding. Kwarans believe this could happen on a broader scale in the Federal Republic of Nigeria, a land of immense agricultural potential. Milk products and rice currently make up US$1.2-billion of the nation’s US$4-billion food-importation bill – a situation that well-organised commercial agriculture has the potential to reverse. In support of the Shonga project, processing facilities have been built, for example a dairy and a poultry abattoir. Refrigeration facilities and transport infrastructure form the next stage in the value chain. The upgrading of Ilorin International Airport was the key to the long-term success of this project. With a long-haul cargo airport, wellequipped with state-of-the-art refrigeration facilities, Kwara State is now in a position to target the European and USA markets. The state’s location (within Nigeria, West Africa and in the international context) is being optimally exploited. The fresh produce currently being produced can
Modern cassava processing facilities are being built throughout Kwara State as part of a drive to turn the state’s natural plentiful resources into food and marketable products.
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INTRODUCTION
The New Nigerian Farmers in Kwara State are already
Kwara State’s capital Ilorin is slowly but surely
producing their own brand of milk and yoghurt drinks.
transforming into a vibrant commercial city with good infrastructure.
Connecting
terracotta works of art known as the Ife heads as one of the ‘supreme artistic achievements of mankind’. Oyo was at the height of its powers in the middle of the 18th century and was a trade conduit between the south and north. The Nupe Kingdom was located to the north of the Niger River. According to Hallett, they were ‘industrial specialists’, with skills including glass-making, weaving, tailoring, blacksmithing and iron mining. One of the traditional skills of the Nupe is in the making of elaborate carved stools, using only one piece of wood. The Bariba people were once part of the Borgu Kingdom and about 80% of this group now live in neighbouring Benin. The rich and varied cultures of Kwara State can be viewed at places such as the Esie Museum, Ogunjokoro and the Imoleboja Rock Shelter. The Pategi regatta is a popular attraction, with boat owners proudly displaying their vessels and fishing and swimming contests. The Esie stone images are an important cultural artifact while various festivals are not only important to local communities but would prove fascinating to visitors. The Awon and Egungun festivals are just two examples. The tragic end of explorer Mungo Park’s expedition down the Niger River is commemorated at Jebba where his boat is on display and there is a monument. TradeInvest Kwara 2010/11
The modern Kwara State is an outward-looking polity. Ilorin International Airport is just one symbol of this attitude. The recently opened branch of the Nigerian Stock Exchange is another. The state’s governor has addressed meetings in the USA and the UK, advising Kwarans in the diaspora of the opportunities back home and encouraging them to solicit investments in their home state. Companies such as Kwara Ethnix Designs (the furniture manufacturer) have their eyes on the London market for their high-quality products, utilising Ilorin International Airport to transport their goods.
Industry The preferred method of growing the state’s industrial capacity is through public-private partnerships (PPPs). The state provides site services and associated support. Among the several current success stories are: Kwara Ethnix Designs, the Olam Nigeria cashew-nut processing facility, Dangote Flour Mills and the Chellarams motorcycle assembly plant. With the state’s excellent natural resources, good infrastructure and the positive support and encouragement of the state government, the outlook for industrial and commercial investors is very good.
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INTRODUCTION
Education and research
Nigeria to voluntarily subject itself to a federal government benchmarking exercise in accountability and transparency.
For any state to be competitive in industry, it needs a good educational infrastructure and in that sense, Kwara State is well served. Kwara State University was inaugurated in 2009, joining the University of Ilorin (a federal institution) and Al-Hikmah University as the leading tertiary institutions in the state. Other facilities include Ilorin Federal Polytechnic at Offa, a Federal Training Centre in Ilorin and State Colleges of Education at Ilorin and Oro. Ilorin also hosts the Kwara State Polytechnic and a School of Nursing. Two important religious centres of learning are the College of Arabic and Islamic Legal Studies and the United Missionary Theological Seminary. The town of Offa is home to Adesoye College. The University of Ilorin Teaching Hospital is the main medical institution in the state, supported by specialist and general hospitals, rural health centres and health clinics. An aviation college located close to Ilorin International Airport aims to offer high-quality pilot training and the Kwara Football Academy is another specialist institution. Research institutes include the National Centre for Agricultural Mechanisation and the Agricultural and Rural Management Training Institute (ARMTI). Another Ilorin-based institute doing important work is the Niger River Basin Development Authority, which oversees issues pertaining to development in the broader region.
nigeria Nigeria is a federal republic with an executive president. The National Assembly comprises the 360-member House of Representatives (selected from constituencies around the country) and a 109-member Senate. Each of the country’s 36 states nominates three senators, and one senate seat is allocated to the Federal Capital Territory, the area that controls the nation’s capital city of Abuja. Nigeria’s legal system is based on English law and two types of customary law, ethnic and Islamic. Some northern states have chosen to introduce Sharia law. Kwara State is not among them. The Supreme Court of Nigeria is the country’s highest court. After a long period of military rule, Nigeria has been civilian led since national elections were held in 1999. Subsequent national elections have been run in 2003 and 2007. Nigeria’s population is estimated to be in the region of 149 million, representing a massive potential market for goods and services. Population estimate: 149 million Size: 924 000 square kilometres Agricultural land: 81% Major languages: English (official), Yoruba, Igbo, Hausa Currency: Naira (May 2010: US$1 = N150) International dialling code: +234 Internet domain: ng
A new way of doing business The administration of Kwara State has instituted special measures to control expenditure and prides itself on transparency in its account keeping. Fitch Ratings has given the state good ratings on two consecutive occasions. A Budget Monitoring and Price Intelligence Unit (BMPIU) monitors all state budgets and scrutinises all quotations. Kwara State was the first state in
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Kwara State is the only Nigerian state to have received two consecutive positive ratings from ratings agency Fitch. This is just one of the many good reasons why Kwara State stands out like a beacon as a prospective destination for serious investors.
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hen Nigeria’s telecommunications sector was opened up to competition in 2001, the response from the world community of investors was fairly tepid. One of the companies to win a mobile phone licence at that time, MTN, is now a continental giant; its current Nigeria subscriber base of more than 20 million is ample testimony to the good sense of investing in Africa’s most populous country. Since 1999, Nigeria has held three national elections and democratic values are taking hold in the Federal Republic. Periodic unrest has been fairly localised, either in the north or in the Niger Delta. Kwara State has proudly lived up to its reputation as the State of Harmony, where the major religious communities have good relations with one another. The centrally located Kwara State is ideally situated to serve Nigeria: it is just north of the megalopolis of Lagos, trucks travelling northsouth pass through the state and it has road connections to Abuja, Kaduna and Kano beyond. In addition, Kwara has been investing heavily in its infrastructure, not least in the upgrading of Ilorin International Airport, which is now a fully fledged international facility able to handle significant volumes of cargo. The airport investment is the central plank of the state’s twoTradeInvest Kwara 2010/11
pronged strategy to grow the economy. The first component is to promote commercial agriculture. This in turn will produce enough produce to sustain an export-driven strategy. The entire value chain is being addressed and investors are being encouraged to get involved at the level of farming (like the successful Shonga farmers who are already producing dairy products, crops and poultry), beneficiation (the state needs processing plants of every sort), transport (trucking and storage) and exportation to foreign countries. Ilorin International Airport’s location allows for relatively short flights to the USA and the UK. Typically, the go-ahead planners of Kwara State are not going to sit around and wait for pilots to be trained elsewhere; instead, the state has inaugurated a top-flight aviation college to be located in Ilorin.
Assets Kwara State has a very good education system, with several universities, a teaching hospital and research institutions maintaining the state’s high reputation in this field. Investors will find it easy to find suitably qualified staff. The state is richly endowed with agricultural and mineral resources. The primary focus at the moment is on promoting investment in
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Transparent and accountable
agriculture and agri-processing, but substantial opportunities exist in the solid minerals sector as well. Kwara has very good support services including hotels of international standard, banks, communications networks and data banks. A branch of the Nigerian Stock Exchange recently opened in Ilorin. The unreliability of electricity supply has long been an obstacle to concerted investment in Nigeria. While this situation has not been entirely solved at national level, Kwara State has taken steps to secure a regular supply of power, particularly for its industrial estates. The work done on the Ganmo substation has had the effect of ensuring close to 24 hours of electricity per day, and this will continue to improve.
Fitch Ratings has given Kwara State positive ratings on two consecutive occasions: AA- for national long term and B+ for long-term local currency. This was based on the state government’s prudent budget management. Tradingmarkets.com reported in 2009 that other positive factors were the administration’s new debt-management office, the consolidation of the state’s own-revenue source and the establishment of a trust fund to build reserves. Kwara was the first Nigerian state to be assigned a credit rating by an international rating agency such as Fitch.
Major sectors A number of companies have already set up operations in Kwara State. Some are primary industries such as a major national producer of flour, others are in soap, detergents and pharmaceuticals, and there is a furniture factory that has been restored so well that it is now regarded as one of Nigeria’s top companies. A significant investment came to fruition in June 2009 when Jebba Paper Mills started rolling again. This facility is the only producer of kraft paper in the whole of the ECOWAS region. Cashew processing and motorcycle assembly are other companies that are rapidly expanding the variety – and scope – of Kwara State’s manufacturing capacity. Sectors in which Kwara hopes to attract investment include: • Agriculture • Agri-processing • Minerals • Manufacturing • Industry • Education • Infrastructure • Property • Tourism
Incentives The Kwara State Government extends a number of incentives to serious investors. These include the provision of land and infrastructure, tax holidays and assistance with obtaining financing. In addition, the state is willing to construct infrastructure such as roads to facilitate development. A recent example of this was the completion of a N2.9-billion irrigation project in support of the Shonga farming initiative. Investors willing to participate along with government in public-private partnerships (PPPs) will find a willing partner in the Kwara State administration. Another area where the state has made things easier for investors is in respect of the Certificate of Occupancy (CoO). In some parts of Nigeria this document – and the difficulties associated with obtaining it – became a major obstacle to development. Kwara State is now able to produce a CoO within two weeks and businessmen can start planning and building quicker than before.
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new investors in
kwara state
A number of private-sector companies have successfully invested in Kwara.
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wara State has become an investment destination of choice – with a wide variety of commercial and industrial enterprises choosing to set up new businesses in the thriving state. The investment-friendly policies of the state government, coupled to Kwara’s strategic
position, plentiful natural resources and welleducated workforce, are contributory factors in persuading entrepreneurs and corporations to set up their enterprises in the state. In recent times, a number of companies have chosen Kwara as the place to build their brands and grow their businesses.
New grain silos such as these at Oke-Oyi ensure that agri-processing plants receive a regular supply of feedstock to keep their machinery working to optimal capacity. This is part of the strategy of the Kwara State Government to support the industrialisation of the state through agri-processing.
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Dangote Flour Mills The Dangote Group is one of the largest corporations in Nigeria. It is a diversified group with an historical emphasis on foodstuffs and agri-processing. Cement production, logistics and real estate are some of the other areas that the multi-billion-naira company now operates in, but it remains one of West Africa’s biggest processors of agricultural goods. Dangote operates five flour and semolina mills in different locations through- Dangote Flour Mills is one of the biggest industrial concerns in Kwara, employing 450 people. out the Republic of Nigeria. Annual production of flour is approximately 1.6 million metric tonnes. to investment when Dangote made the The flour mill operation in Kwara is wholly decision to invest. The chief reasons cited by owned by the Dangote Group of Companies. the company for the original decision to locate The mill, located along Asa Dam Road, was its plant in Kwara were: established in 2003, and the factory went into • Nearness to raw materials full production in July 2006. The major product • Conducive enabling environment is flour with spaghetti and macaroni also being • Government support and encouragement made on site. The installed capacity is 27 trailer• Provision of adequate infrastructure loads of finished product every day. Up to 30 such as land, water, good roads trailer-loads of wheat are needed as feedstock and electricity on a daily basis. • Availability of market for the The feedstock is sourced from within the drier finished products. parts of Kwara State where wheat is cultivated Jebba Paper Mill (MINL Ltd) and from other regions in the northern parts Jebba is a medium-sized town in the northern of Nigeria. part of Kwara, situated on the southern bank Dangote Flour Mill employs about 450 of the Niger River. The town represents the workers which indicates that the company is northern-most point of the river that is performing well. Demand for the flour produced navigable throughout the year. The main by the mill is high and sales figures have been railway line from the coast to the north runs very positive in recent years. through the town. Kwara State Government provided incentives Until 1994, one of the town’s most important and a generally conducive environment
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industries and employers was the Nigerian Paper Mills, which was the property of the federal government. When the company closed its doors, the regional economy was negatively affected. In 2007, private investment company MINL Ltd agreed to take over the assets of the company from the state (and change the name to Jebba Paper Mills). It agreed to invest heavily in upgrading the plant’s machinery to get it up and running and to give it modern capabilities. Jebba Paper Mills represents a strategic national asset as there are very few specialised paper-production companies in the country. Specifically, Jebba Paper Mills is the only producer of kraft paper in the whole of West Africa. The first phase of the plant upgrade cost N3-billion while the total cost of the overhaul will be approximately N12-billion. The plant boasts the most modern electronic controls and systems, all overseen by state-of-the-art computers. Grammage is automatically
controlled, as are factors such as moisture and other quality measurements. Hydraulic and flow circuits have been altered to expand capacity as well. The company’s commitment to using scrap paper to create its product, apart from the obviously positive environmental implications, has the added benefit of increasing indirect employment opportunities for collectors of scrap paper. The plant’s 2 000 full-time employees are all drawn from the local areas surrounding the facility. The upgrading of the mill has had a very positive effect on the regional economy and the paper mill company has supplied piped water to several local communities.
Olam Nigeria
Olam Nigeria Ltd has a significant presence in Kwara State and constitutes an important partner in the state’s drive towards industrialisation and food self-sufficiency. Olam Nigeria is a subsidiary of the Singaporebased Olam International, an agricultural products and food ingredients multinational with 8 000 employees in 56 countries. Through the Olam company, Kwara is connected to a distribution network of more than 4 000 customers in 60 markets around the world. In Kwara, Olam has established a cashew-processing plant at Ogbondoroko which produces exclusively for the export market. At least 5 000 local farmers are involved in harvesting the raw product, which the company then Olam Nigeria recently commissioned a major rice-processing plant in purchases for beneficiation. Kwara. The company already runs a concern that produces high-quality Plans to increase rice production cashew nuts for the export market. in Kwara and Nigeria received a big TradeInvest Kwara 2010/11
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boost with the opening of Olam’s 40 000-metric-tonne capacity rice processing factory at Patigi in late 2009. Olam declared that it wanted to produce more than 20 000 metric tonnes of rice per year by 2010, from its facilities scattered throughout Nigeria. The Federal Government of Nigeria has a stated aim of making the country selfsufficient in the production of rice and the establishment of rice-processing factories Tuyil Pharmaceutical’s manufacturing plant is located in the Kwara State is clearly an important part capital, Ilorin. of that process. The federal government has a Rice fine chemicals are agri-related and Kwara Intervention Fund Scheme and Kwara State State has many of the relevant resources. is one of the chosen sites for the roll-out of Tuyil Pharmaceutical decided to locate a this programme. manufacturing plant in Kwara State because Tuyil Pharmaceutical of the peaceful environment and infrastructural Tuyil Pharmaceutical is a major company in advantages such as a good road network and the pharmaceutical sector, with a presence in adequate supplies of water and electricity. all parts of Nigeria. The decision of Tuyil to Business Monitor International believes that begin production in Kwara has extra signifisigns for private-sector involvement in African cance, given the importance of pharmaceutical healthcare are very good after the World Bank’s production in the national economy. The federal International Finance Corporation (IFC) unveiled government is very aware that Nigeria’s a US$1-billion support package for the developpharmaceutical industry is relatively small ment of private healthcare on the continent. and the installed capacity only caters for about Although Nigeria is introducing a national health 50-75% of the nation’s drug needs. The country insurance scheme, BMI suggests that the is still largely dependent on the importation of increasingly popular concept of health savings drugs. As a result, a ban on the importation of a accounts (HSAs) could provide a solution for number of drugs has been instituted in order to many millions of Nigerians, particularly those stimulate local production. employed in the informal economic sector. The raw material requirements of the sector An aspect of Tuyil’s corporate social investcan be classified into heavy and fine chemicals. ment was revealed in 2009 when it donated While the heavy chemicals are mainly minerala building for the use of the secretariat of the and petrochemical-based, most of the Association of Resident Doctors in Ilorin.
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Kwara State welcomes investors with a comprehensive set of policies and guidelines.
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wara State offers many opportunities for investors in a wide range of sectors. To facilitate such investment, the administration of Kwara State has developed a comprehensive set of policies and guidelines. These outline the principles upon which the investment regime of the state is founded and give specific guidance as to what assistance will be rendered to prospective investors. Kwara State is eager to welcome new investors, and has already done much to smooth the way for new projects to be started. Industrialisation is a way of achieving meaningful economic growth, social progress and general development. The numerous contributions that industrialisation can make to the overall development of a nation have caused the Kwara State Government to regard it as a priority. The government is also aware that the state has much to do to achieve a sufficient level of industrial development. Consequently, it has introduced a number of measures and policies which are aimed at transforming the state from an essentially consumer state to an industrialised one. These policies are:
• Promoting massive tourism, industrial, commercial and cooperative activities especially through the encouragement of private-sector initiatives. • Encouraging local/foreign, private/public capital investments in all spheres of tourism, industry and commerce, especially those related to the resource endowment of Kwara State. This would be done through direct state participation or the creation of a favourable atmosphere for their operations. • Encouraging the development of indigenous technology, especially through the use of adaptive and/or copy technology. • Promoting the establishment of small-scale industries and cooperative projects, especially those that are agro-based. This is to further stimulate industrial growth in the rural areas while at the same time bringing about the expansion of the agricultural sector, particularly through Farmers’ Cooperative Societies. • Vigorously promoting the development of export-oriented industries and programmes to generate foreign exchange that could be used to bring about the expansion of the industrial and commercial sectors to further generate new employment opportunities. • Promoting commercial enterprise generally and providing an efficient distribution network for all cooperative and commercial activities. • Developing the state’s tourism potential. • Promoting the development of the service
Industrial policy The policy objective of the Kwara State Government is to ensure the rapid industrialisation of the state through the provision of a virile industrial base. The government aims to achieve this through: TradeInvest Kwara 2010/11
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introduction
industry (repairs and maintenance) and those companies supplying components and parts.
location of a plot allocated to him/her informs the Bureau of Lands. The Bureau in turn will inform the Ministry of Commerce, Industry and Cooperatives of the complaint and the necessary actions being taken. An investor who is allocated an industrial/commercial plot and who fails to develop his plot within one year of such allocation, automatically forfeits his/her allocation.
Investor guidelines The appropriate authorities
• T he Bureau of Lands and Physical Development demarcates appropriate areas in various towns or Local Government Areas (LGAs) in the state as layouts for commercial use or as industrial estates. Within this bureau, there is an Industrial/Commercial Plot Allocation Unit. • The Ministry of Commerce, Industry and Cooperatives is adequately informed of decisions pertaining to the demarcation of industrial estates so that such information can be disseminated to interested investors. All three of these bodies work hand-in-hand for quick allocation of plots to interested investors. • The Ministry of Commerce, Industry and Cooperatives has studies on raw materials available in the state for interested investors.
Industrial incentives Apart from setting priorities in its investment promotion efforts, the state government has introduced a package of incentives to prospective investors. These incentives will assist the industrialist in taking the right decision with respect to the choice of location of his industry in the state. These incentives include: • Provision of infrastructure: The Government has provided industrial and commercial layouts/ estates that are fully serviced with the necessary infrastructure in all Local Government Areas: access roads, water supply, electricity and drainage. Where telephone facilities are available in a town, telephone lines will be extended to the layouts/estates therein. • Plot allocation: Industrial and commercial plots will be allocated promptly on approval of the project. • Certificate of Occupancy (CoO): Certificate of Occupancy will be issued within 30 days of agreement by all the parties involved in the processing. • Joint financing of project: Joint financing by government agencies is guaranteed subject to their independent assessment of the project. • Rebate on ground rent: Rebate is granted on ground rent and other fees to reduce the financial burden on investors. • Raw material data: An in-depth survey of the available raw-material potential of Kwara State is obtainable from the Raw Materials Research and Development Council (RMRDC) at a token fee.
Queries
• A ll inquiries on industrial or commercial ventures must be made to the Ministry of Commerce, Industry and Cooperatives. • The Bureau of Lands and Physical Development offers the necessary forms for industrial plot application to the investor. A copy of this form is kept with the Ministry of Commerce, Industry and Cooperatives for its records. Allocation of plots
All plot allocations (industrial or commercial) are made by the Bureau of Lands with the Ministry of Commerce, Industry and Cooperatives in attendance. The Ministry of Commerce is officially notified in writing of all such plot allocations made by the Bureau of Lands. Challenges and forfeits
An investor who is dissatisfied with the size or
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TradeInvest Kwara 2010/11
introduction
Three key facilities are set to improve the commercial landscape in Kwara State.
S
ignificant opportunities exist for private operators to become involved in developing the commercial sector in Kwara State. These encompass sectors as diverse as aviation (International Aviation College), logistics (Truck Plaza), and retail (shopping mall).
College (IAC) but intends seeking private investors to take equity in the undertaking once it is up and running. The college will train pilots of all sorts. International demand for pilots is very high and demand is expected to remain strong. The number of airlines operating in Nigeria has increased exponentially in recent years. The Aviation specialist training needed for helicopter piloting (International Aviation College) (a skill very much in demand in the oil industry Kwara State is responsible for the initial financial in Nigeria) will also be offered. outlay to establish the International Aviation The final state percentage of ownership is intended to rest at 50%, with various private entities holding shares. In this way, the state will recoup some of its investment while at the same time bringing in the expertise of investors and partners. Contracts have been signed with instructors and aviation academy specialists in the United Arab Emirates with regard to the phasing in of classes and the management His Excellency Governor Dr Bukola Saraki inspects the site map of the International of the facility. Thirteen Aviation College. The governor announced in 2009 that training equipment for instructors have received the college had been ordered. The establishment of the college illustrates the training in South Africa in Kwara governor’s dual commitment to improving the state’s communications and preparation for the openexpanding educational opportunities for Kwarans. ing of the college. In a TradeInvest Kwara 2010/11
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introduction
related development, the Nigerian Air Force will establish a maintenance base in Ilorin. Italian company Alenia Aeronautics will manage the project that will be rolled out in the course of 2010. The hangar will be available to private airlines and will contribute to the development of the aviation industry in Kwara State. The maintenance hangar will help to spark developments in associated engineering and commercial fields by creating opportunities for smaller local companies to compete for subcontracts.
Retail (shopping mall) Location and extent
Kwara State’s International Aviation College takes shape. The facility
The site extends over three hectares on Fateh Road, Ilorin, in the South Local Government Area.
will be inaugurated in 2010.
furniture, household goods and pharmacy outlets. Medical doctors will have their consulting rooms in the mall and there will be medical clinics.
Ownership
The Kwara State Government intends to be a 30% shareholder in the project (N500-million, excluding the value of the land), with the balance of equity divided between various private investors. Attractive incentives are in place to make investing in the project worthwhile. The demand for formal retail is strong and good returns are expected. A SPV (Special Purpose Vehicle) will be created where the Kwara State Government and partners will form a company to be called Kwara Mall Develop Centre.
Construction and financing
Persianas Investment Limited is the state government’s partner in delivering the N3-billion project. This company was the lead developer in the consortium that built the highly successful Palms project in Lagos. Some of alliances concluded to deliver the entire project are with FCMB, Julius Berger and Chapel & Hill. Facilities
Potential tenants
The shopping mall will be enclosed with a substantial car park. It will be fully air-conditioned and fully powered up either through PHCN (Power Holding Company of Nigeria) or through an alternative energy source.
Banks, cinemas and supermarkets are in line to be the anchor tenants. Major retailer Shoprite (which has more than 950 stores across Africa) has expressed its intention to participate. Fast food restaurants include Mr Biggs, Chicken Capitol, Chicken Republic and others. Shops will include jewellery, fashion,
Projected benefits
Increased trade within the state with shoppers
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TradeInvest Kwara 2010/11
introduction
to earn excellent returns in the development of a Truck Plaza as part of the state’s broader aim of positioning itself as a regional and national transport hub. Kwara’s central location with respect to the rest of the country is enhanced by its strategic position close enough to the bustling metropolis of Lagos to ensure quick delivery of goods but far enough away from the congestion of that area to be able to ensure rapid deployment of those goods to other parts of the federation. A 90-hectare site is being developed near the Ilorin International Airport to centralise and control the through-put of trucks from all parts of Kwara State and beyond. Private developers of every sort associated with the transport, tracking and logistics sectors are sought.
A 90-hectare site is being developed near Ilorin International Airport as a Truck Plaza to take advantage of Kwara State’s strategic location. Maintenance facilities, fuel depots and accommodation units are planned.
no longer travelling to Lagos for monthly shopping. The mall and its tenants will create employment opportunities. The area around the mall is expected to experience rapid development, with an attendant spike in property values. The multiplier effect within the city of Ilorin and the state will be high, especially as the percapita income of Kwarans has been rising steadily over the last seven years; the timing of this retail development dovetails well with this general economic trend.
Facilities that will be available at the truck plaza • • • • • • • • • •
Timescale
A memorandum of understanding (MOU) has been signed. Construction work was expected to begin in 2010 with completion set for December 2010. The design, costing and financial information phases have all been completed. The state will hand over management of the centre to a professional management company.
Specific areas of the truck plaza where private-sector investment is required • Fuel and service centres • Motels and other accommodation facilities • Eateries and cafeteria facilities • Truck maintenance workshop • Main plaza
Logistics (Truck Plaza) Private investors have an excellent opportunity TradeInvest Kwara 2010/11
Truck parking area Fuel and service centre Truckers Village Clinic Fire station Truck and bus washing bay Bus and car parking area Emergency tow service Motels Eateries and cafeteria facilities
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introduction
Sporting facilities Kwara State is pursuing sporting excellence through the establishment of world-class facilities.
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ith the eyes of the sporting world on Africa in 2010 because of the first FIFA World Cup to be held in Africa, Kwara’s focus on football is sure to reap good dividends. The high-profile Kwara Football Academy and the much-anticipated upgrade and extension of the state’s premier sporting facility – the Kwara State Stadium Complex – are at the centre of the state’s pursuit of sporting excellence. Fittingly, Kwara United Football Club recently regained its Nigerian Premier League (NPL) status and, with the strong support of its fans, the club is hoping to emulate in 2010 the excellent performances of the teams of yesteryear. In 1994, Kwara United played in a continental semi-final (the CAF Cup) and in 2007 it advanced all the way to the final group stage of the CAF Confederation Cup. The club is funded by the state but with the sale of six outstanding players to foreign clubs, funds have been generated by the club itself which is a step on the road to independence.
ventions, at least seven of the academy players earned trials with European clubs. With the Kwara State Government providing infrastructure and buildings, private partner Avery Atlantic (Nig) Ltd is responsible for the running of the college. Situated on 35 hectares of prime land within the broader Kwara State Stadium Complex, every facility caters for the promotion of the young participants’ wellbeing, with the aim of achieving a balance between educational and sporting goals. KFA has four standard football pitches, a lawn tennis court, a basketball court and a gymnasium.
Kwara Football Academy The Kwara Football Academy (KFA) is already earning an international reputation. A recent tour of Europe was a great success. As a result of this tour and other strategic inter-
The Kwara State International Stadium Complex is due for a N1.3-billion upgrade in 2010, designed to put the state on the sporting map.
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Kwara State Business 2010/11
introduction
covered at the academy include languages (English, French and one other European language), mathematics, creative, technical and vocational studies, and a selection from the sciences. The Director of the Academy is acclaimed Dutch soccer coaching master Clemens Westerhof and he is assisted by three coaches, a trainer, a physiotherapist, a masseur and assorted technical and administrative staff members. The Kwara Football Academy has state-of-the-art medical facilities. A physician and a nurse look after the medical needs of the The facilities are well spaced out, giving a calm students and staff while an academic staff of and aesthetically pleasing aspect to the acad10 attends to the curriculum and teaching at emy environment. the academy. Students, all of whom attend the academy for KFA creates opportunities for players to be free if they are from Kwara, live in the student scouted by clubs but a host of other prohostel and have access to the KFA medical cengrammes also equip the young players for tre. In addition, there is an administrative block other careers beyond the playing pitch, such and the classrooms of the academy. as in sports management. In addition, training Students emerging from KFA are in a position in attitude management and the necessity of to write various examinations, including Nigeria’s adapting to foreign environments is aimed at West African School Certificate, the International assisting the young people to adapt to whatever General Certificate of Secondary Education circumstances arise. Monitoring and mentoring and the International Baccalaureate. Subjects are at the heart of the KFA programme.
Football coach Jose Mourinho exchanges gifts with
One of the training pitches at the Kwara Football
Governor Dr Bukola Saraki on the occasion of a visit by
Academy, showing the grandstand of the stadium
the coach to the Kwara Football Academy.
in the background.
Kwara State Business 2010/11
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introduction
Kwara State Stadium Complex The Governor of Kwara, Dr Bukola Saraki, pledged in his 2010 budget address to the Kwara State House of Assembly that his administration was determined to renovate and upgrade the stadium complex, situated in Ilorin. This was being done, he said, in line with the state government’s ‘commitment to recovering our heritage and infrastructure’. The stadium’s main current Guests visiting the Kwara Football Academy are accommodated in role is to host the home matches guest cottages. of Kwara United. Built in the late 1970s, the stadium played a central role in the hosting of the 1985 National has already been renovated and improved. Sports Festival. The new main stadium will comfortably An amount of N1.3-billion has been set aside host 20 000 spectators and there will be four in the state’s 2010 budget for improving and changing rooms and an indoor sports hall. renovating the facilities that already exist on The track will be an eight-lane Mondo track the site. The swimming-pool complex, which with floodlights. In addition, conference rooms, includes an Olympic-sized swimming pool, a new VIP area, a covered press gallery and an artificial football pitch will be installed. All of these upgrades are to be made to Existing facilities comply with the guidelines set down by • Football pitch world football body, FIFA. • Eight-lane running track • Dressing rooms, medical room, offices • Gymnasium Investment opportunities • Indoor sports hall and restaurant/bar in sport • Swimming pool complex: competition, • Hotel to cater for competitors, officials practice and diving pools, grandstand and supporters for 1 000 spectators, conference hall, • Motel and camping accommodation for restaurant/bar visitors on a budget • Basketball and volleyball courts • Car wash with floodlights • Supermarket • Tennis arena: six courts and practice wall • Cinema hall that can also accommodate • Squash hall: see-through back panel, stage shows office space and seating arena
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Kwara State Business 2010/11
introduction
Kwara State offers excellent supporting infrastructure aimed at creating an environment that is conducive to investment and business.
A
dequate infrastructure plays A vital role to any investor looking to start a business. Basic physical and organisational structures are needed for the profitable and efficient operation of any commercial venture.
Kwara State has put in considerable effort to improve vital areas such as transport, power generation and distribution, water supply, information and communication technology (ICT) and the provision of healthcare services, to name a few, in order to provide a conducive environment for business. Despite the achievements, the current administration realises that a lot of work still needs to be done to bring its infrastructure up to world standards.
Power
The New Nigerian Farmers were the first to utilise the cargo-handling facilities at Ilorin International Airport when they brought in 800 Jersey cattle from South Africa.
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Sufficient and reliable power supply is of utmost importance to anyone looking to do business in Nigeria. Kwara State has made significant progress in this regard by completing a new substation and improving distribution and transmission. The recent completion of the 330/132/33KV substation at Ganmo is a great success story. The state capital Ilorin currently enjoys close to 24 hours
introduction
of uninterrupted power supply a day and businesses in the area hardly ever have to make use of generators, saving them a considerable amount of money. Because of the Ganmo facility, power supply in the state, which used to be between 30 and 40 megawatts per day, a typical scenario for most parts of Nigeria, improved dramatically to between 80 and 90 megawatts per day. In the area of rural elecThe Kwara State Government is committed to improving the state’s road trification, many remote infrastructure, as is evident from the construction of the new flyover in Ilorin. areas and villages have received power, including with Lagos. More than half the goods arriving in the ‘New Nigerian Farmers’ Lagos are not destined for Lagos itself but for the in Shonga. To maintain the leverage that the state currently enjoys, the state government has rest of the country. Because of Kwara State’s central location, goods can now be directly brought begun to invest in a transmission and distribuinto Ilorin, and trucked to other parts of Nigeria, tion programme. Contracts have already been saving importers time and money. Customs clearawarded for the supply and installation of six 15MWA 33/11KV transformers. The state govern- ance at Ilorin is also much quicker than Lagos with ment is willing to provide adequate power supply officials on standby 24 hours a day. During a trial run using a temporary cargo to any new business investment in the state. shed, the New Nigeria Farmers at Shonga Airport and cargo terminal brought in 800 Jersey cattle from South Africa. Ilorin International Airport has been upgraded The airport has also received a load of cargo with a new terminal building and other modern from Dubai. One of the state’s major industrial facilities. A recently completed cargo terminal at concerns, furniture manufacturer Kwara Ethnix the airport allows investors to import and export Designs, has recently indicated it is working goods via air. The facility gives Kwara State a towards exporting goods directly to Europe from significant competitive advantage over other Ilorin International Airport, utilising its cargoareas in Nigeria. The terminal has been built handling facilities. especially to export agricultural produce from Roads the state but it will also cater for the rest of Kwara State’s road network has seen great Nigeria’s cargo needs. improvements in recent years. Most of the major The Kwara State Government wants to estabroads in the state have been upgraded, although lish the state as a cargo hub, competing directly
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TradeInvest Kwara 2010/11
INTRODUCTION
this is a work in progress. In Ilorin, the major arterial roads have also been improved and a new flyover in the centre of the state capital has greatly reduced congestion. The Kwara Traffic Management Authority ensures the smooth flow of traffic in Ilorin, especially along certain roads that have been identified as highly prone to congestion.
the branch, a number of stock-broking firms have also set up shop in the state.
ICT services Most of Nigeria’s main mobile operators have base stations in Kwara State’s major cities and many have started to connect the more rural areas of the state. When the New Nigerian Farmers settled in the state, the current administration collaborated with Globacom to provide mobile services to the farms. Although the arrival of mobile telephony has boosted the state’s economy and created employment, the administration has called on operators to further improve their services. Businesses can subscribe to Internet access through various service providers and Internet cafés are found across the state.
Financial services Kwara State has numerous banks and financial institutions that are ready to assist investors and businesspeople. Most major banks have branches in Kwara State and investors have access to most bank services. The Kwara Microfinance Bank complements the activities of existing microfinance banks to provide credit to small businesses and cooperative groups. The recent opening of the Ilorin branch of the Nigerian Stock Exchange is evidence of Kwara State’s growing importance in the country’s financial-services sector. Since the opening of
Security Kwara State is proud of the fact that it is one of the most peaceful states in Nigeria. Although the state hosts a wide variety of people with different religions and cultural heritage, there is a sense of mutual respect among the population. To further improve security in the state, the administration has recently installed closecircuit television (CCTV) cameras in the capital Ilorin. New solar-powered street lights have also been introduced to boost security at night.
Water supply
Modern irrigation facilities have been provided to the Zimbabwean farmers in Shonga in order to boost crop yields.
TradeInvest Kwara 2010/11
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Water supply is one of the major challenges facing all of Nigeria’s rural areas and Kwara State
INTRODUCTION
is no exception. While the region has sufficient water resources to meet the needs of the people, many are still not enjoying the benefits of potable water. Historically, water infrastructure such as waterworks, storage reservoirs, pump stations and distribution networks have been poorly maintained. The current administration has shown its commitment to turning the situation around by rehabilitating waterworks, drilling new hand-pumped boreholes, installing solar-powered mini-motorised boreholes, improving the pipeline distribution network and purchasing The Ilorin branch of the Nigerian Stock Exchange has led to a number of water treatment chemicals. stock-broking firms opening up in Kwara State. The state government believes water is a major factor in achieving doctor himself, the Kwara State Governor, His key development objectives especially in Excellency Dr Bukola Saraki, is placing a great the areas of health, education and poverty emphasis on healthcare. Hospitals have been reduction. It is therefore willing to partner with upgraded, drugs have been distributed and all stakeholders at national and international modern hospital equipment has been procured. levels in meeting this all-important challenge. The state is partnering with Medequip Irrigation Medical Services to construct one of its flagship Another important part of water supply is healthcare facilities – the Central Diagnostic providing irrigation for agriculture. A project to Centre. The facility will provide sophisticated provide the New Nigerian Farmers in Shonga with laboratory investigations, pathology and imaging adequate irrigation is nearing completion. CGC services such as CAT scan and mammography. Nigeria Limited has been awarded the contract to The centre will not only serve both public and build a pipeline system stretching from the River private hospitals in Kwara State but institutions Niger to the individual farms. Modern sprinkler across the entire country. The revenue potential systems have already been acquired and will of this initiative, apart from the health benefits, make a significant difference to the crop yields at is indeed enormous. the Shonga farms. Small-scale irrigation projects One of the other steps that has been taken to have also been established in various Local improve healthcare is the establishment of an Government Areas to assist small-scale farmers. oxygen plant at the Sobi Specialist Hospital. The oxygen produced is important for surgical and Healthcare emergency procedures. Through the Malaria-Free Investors in Kwara State will find adequate Kwara programme, insecticide-treated nets and healthcare services. Being a qualified medical free malaria drugs are being distributed.
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TradeInvest Kwara 2010/11
introduction
Kwara State’s reliable power supply is creating a favourable environment for investors.
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wara State has made great strides in the field of power generation. As His Excellency Governor Dr Bukola Saraki has said, ‘Our various efforts at achieving economic growth for our state can only achieve desired results if we are able to provide the necessary infrastructural support, especially electricity.’ All but one of the National Independent Power Projects (NIPP) that were launched across
Nigeria came to be abandoned over the course of years, but Kwara State intervened in the case of the Step-Down Station at Ganmo and lobbied that it should be retained as a working entity. In the course of 2009, the renovated Ganmo sub-station was completed and given the national seal of approval in that it was commissioned by the former President of the Federal Republic of Nigeria, Alhaji Umaru Yar’Adua. The technical implications of getting this distribution network to work to optimal capacity meant that power had to be evacuated from two 150 MVA, 330/132KV transformers; and from two 60 MVA, 132/33KVA transformers from Ganmo sub-station. To convert this power stream, the city of Ilorin requires a total of 39 transformers (6 x 15 MVA, 33 x 11 KVA). Kwara State’s ambitious power-generation programme has created Chellarams Plc motorcycle assembly plant is one of the newest manufacturing a large number of opporconcerns to establish a presence in Kwara – and benefit from the improved supply tunities for specialists in of electrical power. the provision of power, TradeInvest Kwara 2010/11
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introduction
The reliable supply of power in Kwara State is helping to attract commercial and industrial investors. Where a company might previously have spent several thousand naira on diesel to run its generators, a reliable power supply from the grid has helped to cut costs considerably. Some saw-mill operators reported huge savings in running costs within a few months of the Ganmo station starting to operate. In addition to this achievement, a dedicated Kwara Ministry of Energy was established in 2009, with a full cabinet responsibility to ensure adequate power supply and full electrification of every community by the year 2020. Rural electrification is another priority of government. Since the Saraki administration began its term of office in 2003, a total of 625 transformers have been acquired for electrification projects. Contracts for the construction and installation of four injection sub-stations were awarded in 2009 for projects at Asa Dam, Agba Dam, Gaa Imam and Budo-Efo to enable effective evacuation of electricity from Ganmo to all parts of the state. Plans are under way for Sobi sub-station to be reinforced to service the Kwara Polytechnic axis. In 2009, a total of 129 communities were also connected to the national grid, while transformers of various ratings were supplied and installed to 182 communities in a variety of regions.
Connecting rural areas: in 2009, a total of 129 communities were connected to the national grid, while a further 182 communities received transformers.
The sophisticated equipment that produces dairy products for the Shonga Farms project requires a constant supply of electricity. The plant has an installed capacity to process 11 million litres of raw milk per year.
the maintenance of equipment, the installation of generators and related technical fields The delivery of power from the Ganmo station was a beacon on the way to the realisation of a major goal of the Saraki administration. As stated by the Governor: ‘We recognise that our desire to industrialise our state can only be achieved if we are able to provide stable power supply.’ Governor Saraki’s conclusion in respect of the successful Ganmo operation and the achievement of a reliable power supply: ‘The economic and social benefits of this can hardly be quantified.’
Investment opportunities • Energy efficient lamps • Alternative energy, including solar and wind power • Power generation and distribution • Power infrastructure maintenance • Coal-fired power generation
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TradeInvest Kwara 2010/11
introduction
The Cargo Terminal at Ilorin International Airport will provide a huge boost for importers and exporters.
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he Ilorin International Airport Cargo Terminal is a major innovation and a significant factor in the outward-looking policies of the administration of Kwara State. The year 2010 will see this facility in full use. The implications of this modern facility being at full capacity for the state of Kwara and the Federal Republic of Nigeria are expected to be great, as indeed they may be for the whole of West Africa. The cargo terminal is designed to support the broader economic policies of Kwara State, and in particular the agricultural plans. These take a holistic view of the agricultural cycle, and
support primary producers, transporters and companies that add value later in the cycle through processing. The modern Cargo Terminal supports this comprehensive approach as it allows for the export of fresh produce (because of the cold-storage and wet facilities at the terminal), the export of processed agricultural products (because of the large storage areas) and the import of materials and equipment needed for the support of the agricultural sector. Designed to take the strain off the massively busy airport at Lagos, the Cargo Terminal in Kwara State aims to take advantage of the state’s already advantageous, central, position. Good road links south to Lagos connect the state with the most populous region in Nigeria, but crucially link to the central and northern parts of the federation without the congestion associated with the southwestern sector. The Cargo Terminal is expected to serve the five other states in the NorthCentral zone (Niger, Kogi, Nasarawa, Plateau and Work is nearly finished on the extensive Cargo Terminal at Ilorin International Benue) together with all Airport. The facility is expected to be running at full steam in 2010. of the states in the NorthTradeInvest Kwara 2010/11
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introduction
The Cargo Terminal is set to become a major regional asset, with refrigeration facilities allowing for the import and export of time-sensitive products such as fresh fruit and flowers.
West zone (Kebbi, Sokoto, Zamfara, Katsina, Kaduna, Kano and Jigawa). In addition, Kwara is well located in relation to the nation’s capital, Abuja. The primary product to be handled out of the new terminal in the first phase will be the agricultural produce of the Shonga farms. This includes dairy products, poultry and cassava. Many other crops have great potential, as does the horticultural sector. Cut flowers are an extremely lucrative market. Now that the Cargo Terminal has up-to-date refrigeration facilities, Kwara State entrepreneurs will be in a position to exploit the fact that the main centres of Europe are within a six-hour flight from Ilorin International Airport. The airport is currently accepting and forwarding cargo to South Africa and the United Arab Emirates and will be extending this profile over time. The Ilorin International Airport Cargo Terminal will give exporters and importers a competitive advantage, especially as customs officials are destined to be on duty all day and all night. This will significantly reduce time spent on paperwork and allow for the expeditious handling of goods. In the case of the companies exporting
time-sensitive goods, such as flowers and soft fruits, this time saved can be a major factor in the ultimate profitability of the enterprise.
Cargo Terminal facts Capacity • Import Cargo Shed: 1 260 cubic metres • Export Cargo Shed: 1 260 cubic metres Equipment on site • Fire-fighting vehicles • Security patrol vehicles • Water tanker • Airfield recovery equipment • Screening machine (cargo) • Airfield ground control equipment • Trolley (stainless steel) • Ramp handling services equipment • Cargo aircraft night handling equipment (15 KVA inverter) Wet cargo facilities • Weighing scales • Stainless-steel system • UV dryer • Ice machine • High-pressure cleaner
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TradeInvest Kwara 2010/11
Soil being prepared for the cultivation of soya beans on the land of one of the New Nigerian Farmers in Shonga.
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igeria’s fixation on its oil industry has left the agriculture sector largely undeveloped. In recent years, however, there has been a shift in thinking and the country has identified agriculture has the main driver of future economic growth. Kwara State has been the clear leader of this agrarian revolution. With enabling government polices, the state has seen a number of signifi-
TradeInvest Kwara 2010/11
cant investments in the sector. The goals of the state government are to ensure that Kwara State produces enough food for the local population as well as to export to the rest of Nigeria and international markets. Agriculture must be seen as a business, with more commercial farmers. The state has nearly two million hectares of uncultivated arable land which it wants to put to work. A favourable climate and good soil support rain-fed agriculture and livestock production.
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OVERVIE W
With vast areas of arable land and good supporting infrastructure, Kwara State’s agriculture sector offers many investment opportunities.
The natural vegetation consists broadly of rainforest and wooded savannah. The landscape of undulating hills, valleys and plains is traversed by the tributaries of the Niger River. Annual rainfall is between 1 000mm and 1 500mm, while the average maximum temperature ranges between 30˚C and 35˚C. Opportunities for investment include direct cultivation of crops, agri-processing, transport, the provision of agricultural inputs and the
marketing of produce. Investors can easily acquire land with the assistance of the state government. Numerous incentives are also offered to attract investment to the sector.
New Nigerian Farmers Kwara State’s flagship agricultural project is the Commercial Agriculture Initiative in Shonga where a group of displaced farmers from Zimbabwe were invited to start with commercial
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OVERVIE W
The Olam Nigeria cashew-nut factory in Ogbondoroko exports its produce exclusively to international markets.
farming. Thirteen farmers relocated to the state and are currently involved with the production of dairy products, poultry and the cultivation and processing of a range of crops such as cassava, soya beans, maize and bananas, among others. Despite some initial challenges, the project has become a huge success. The dairy syndicate is already producing its own brand of milk and yoghurt drinks. A cassava processing facility has been established and some crops are being supplied to Africa’s largest retailer, Shoprite. With modern irrigation systems coming on-stream and world-class poultry facilities finally completed, the New Nigerian Farmers are set to go from strength to strength. The state government has already identified land for a similar project in the Asa Local Government Area. See case study on page 40 for more information.
such as tractors and fertiliser are currently sold or hired to farmers at much subsidised prices. At the Integrated Youth Training Farm in Malete, students are taught about various advanced farming practices. After completing the course, graduates are provided with five hectares of cleared land and a loan to facilitate their early resettlement as a young generation of commercial farmers. Agricultural institutes located in the state are the Agricultural and Rural Management Training Institute, the National Centre for Agricultural Mechanisation and the Niger River Basin Development Authority, all in the capital Ilorin. The International Institute of Tropical Agriculture research station is also doing trials on new seed varieties in Kwara State.
Empowering local farmers
The focus in Kwara State is on the cultivation of six crops: cassava, rice, maize, cow pea, soya beans and groundnuts. Other crops that can be grown include cashew nuts, yams, beans, sugar
Crops
The state government is looking for the techniques used by the Zimbabwean farmers to pass on to the local population. Agriculture inputs TradeInvest Kwara 2010/11
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OVERVIE W
Left: Kwara State has a suitable climate for the planting of a range of fruits, including bananas. Right: Mechanisation of agriculture provides better yields. These tractors do duty as ploughs and earth movers on the Shonga commercial farms.
cane, cotton, cocoa, coffee, tobacco and palm produce. Various fruits and vegetables such as tomatoes, mangos, oranges, pineapples and bananas are also cultivated in the state. Another area that holds good potential is cut-flower production. A delegation from Kwara State recently travelled to the Netherlands where cut-flower export opportunities were discussed. The new cargo terminal at Ilorin International Airport means that cut flowers can be in Europe within six hours of harvesting.
ments in the area of agri-processing. Through its local subsidiary, Olam Nigeria, Singapore-based Olam International invested in a cashew-nut factory at Ogbondoroko. The facility processes cashew nuts, bought from more than 5 000 local merchants, exclusively for the export market. The opening of Dangote Flour Mills in Ilorin is further confirmation of the state’s attractive investment environment. In the area of ethanol or biofuel production, Kwara Casplex Limited has announced that it will produce ethanol by using cassava as an input. Casplex also has similar projects which are at an advanced stage of implementation in Oyo and Ekiti states. The team of Nigerians has taken on Chinese partners to assist with the technical aspects of the project. Using the oil from Jatropha seeds to produce biofuel also has potential in Kwara State. Prospective investors can either cultivate their own crops or buy from local farmers and focus solely on processing activities.
Agri-processing Kwara State cannot achieve the economic growth it envisages by merely exporting raw materials. If the state fails to add value, it would be labouring in vain. Statistics from the International Coffee Organisation show, for example, that for every dollar earned by local coffee farmers, traders and firms further up the value-adding chain received $13. The state has seen a large number of invest-
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In order to fast-track the mechanisation of the agriculture sector, the Kwara State Government has procured a number of tractors which it sells to local farmers at subsidised prices.
Livestock
bred on a small-scale basis. Significant potential exists for large-scale poultry production, of both eggs and broilers. A company called African Chicken Farm has already acquired land in the state and will have a capacity of 12 million broiler chickens per annum. Goats are also found in the region and the meat is very popular with Nigerians.
The climate and vegetation of Kwara State is wellsuited to the rearing of livestock. The Zimbabwe farmers imported 800 Jersey cattle from South Africa and are looking at cross-breeding this milk-producing cow with the hardy Zebu cattle found in Kwara State. At present, Nigeria imports 48 000 tonnes of dry whole milk, 30 000 tonnes of evaporated milk and 16 000 tonnes of dry skimmed milk every year. The projected growth in dairy output in Kwara State will generate a potential US$21-million saving in foreign exchange outflow. A sizeable cross-border trade in cattle is already taking place in Kwara State. Cattle are being brought in from Benin and are then sold for their meat within Nigeria. Opportunities exist to set up a modern abattoir near the border which will allow residents to buy packaged meat instead of live animals. Poultry accounts for nearly 10% of Nigeria’s agricultural output, although many chickens are TradeInvest Kwara 2010/11
Fish farms Kwara State has many rivers and water bodies which would serve as good locations to set up fish farms. Opportunities exist in various areas of the aquaculture sector, including the production of table fish, the construction of fish farms, the provision of storage facilities, fish seed multiplication and financing. The foundations of a new fish-farming estate in Omu-Aran were recently laid. The facility comprises four hatcheries, 100 ground tanks, a feed mill and a fish-processing unit.
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INVESTMENT OPPORTUNITIES IN AGRICULTURE Processing of cassava Cassava can be processed into a number of products such as starch, flour, chips, ethanol and glucose syrup, to name a few. These products are all in high demand locally and also have significant export possibilities.
for rice and the country spends large amounts to import the commodity. Olam International is investing in a rice mill in Kwara State for which land has been allocated. The company will also sponsor an out-growers scheme through which it will buy rice from local growers.
Sugar-cane refining Nigeria has a total demand for sugar of 120 000 tonnes per annum and of this, only 55 000 tonnes are produced by local sugar firms, while the balance is imported.
Second commercial agriculture project The administration is looking for investors to participate in a second commercial farming project. A total of 20 000 hectares of land has been identified in the Asa Local Government Area. The land is similar to Shonga with plenty of surface and underground water.
Fruit-juice production facility Kwara State’s climate is conducive to the growing of fruits and vegetables such as mangos, oranges, pineapples, bananas, tomatoes, etc. The project includes the planning, construction, installation of equipment and operation of the facility.
Cultivation and processing of soya beans Nigerians have recently turned to soya foods as an alternative source of protein to meat and other protein-related food supplements. Kwara State has an excellent climate to grow soya beans and the current administration will do anything in its power to assist investors in both the cultivation and processing of the crop.
Agric malls and equipment leasing Agric malls are facilities where farming equipment and inputs are stored and made available for farmers to rent. There is a significant market for equipment hiring and good returns on investment are possible. Farming inputs required include: tractors and accompanying implements, fertiliser, seeds, herbicides, insecticides, and poultry medicines and vaccines.
Cashew-nut processing Nigeria is the world’s fourth-largest producer of raw cashew nuts, but there is still plenty of room for increased cultivation and processing activities. Investors can buy raw cashews from various small-scale farmers across the state.
Fish farming Nigerians are large consumers of fish and it remains one of the main sources of animal protein. Only around 50% of demand for fish is currently being met by local supply.
FOR MORE INFORMATION, CONTACT Fela Ibidapo, Special Assistant to the Executive Governor on Investment Email: felaibidapo@kwarastate.gov.ng TradeInvestNigeria: www.tradeinvestnigeria.com info@tradeinvestafrica.com
Rice production Local production cannot meet Nigeria’s demand
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Companies invested in the agricultural sector in Kwara State Investment company
Project
Hectares
Local Government Area
New Nigerian Farmers
Crops, dairy and poultry
13 000
Shonga, Edu LGA
Olam Nigeria Limited
Rice processing and outgrowers’ scheme and cashew processing
20
Patigi, Patigi LGA
Coga Farms Limited
Cassava, maize and Jatropha plantation
6 000
Fallah, Moro LGA
Gil Flour Mills Limited
Rice-processing factory and paddy rice production
5 050
Edu and Patigi LGAs
African Chicken Farm Limited
Integrated poultry production
615
Ilorin East LGA
Lix-Konti Ranch and Industries Limited
Arable crops: maize, soyabeans, sesame seeds and groundnuts
756
Ejidongari, Moro LGA
Kwara Greens Limited
Vegetables and flowers
50
Oro-Gbangba, Asa LGA
Jatropha Farmers Development Foundation
Cultivation of Jatropha for biodiesel
5 000
Iwo, Isin LGA
Crops grow tall in Kwara State’s excellent climate and
Commercial farming has come to Kwara State through
fertile soil. Cassava, maize, rice and soyabeans are the
the New Nigerian Farmers project at Shonga. This shed
principal staple crops cultivated in the state.
provides protection for a herd of dairy cows.
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Investment company
Project
Hectares
Local Government Area
Casplex Limited
Cassava production and processing
15 000
Okuta, Baruten LGA
Jan-Kasal Company Limited
Industrial starch and ethanol
5 000
Ndanaku, Patigi LGA
ZJS International
Arable crops: maize, rice and soyabeans
5 000
Echi-Wada, Patigi LGA
Dawacon International Limited
Cashew plantation and processing
5 000
Oke-Ola Oro, Irepodun LGA
Tunslag Nigeria Limited Cassava and maize production, processing and feed mill
500
Dana Foods Limited
Rice farming and outgrowers’ scheme
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Future Energy Limited
Jatropha for biodiesel
5 000
Enviro Friendly Energy Limited
Jatropha for biodiesel and refining complex
9 369
Oke-Ose, Ilorin East LGA
Daru/Lanwa, Moro LGA
Cashew processing has provided many new employment opportunities for the people of Kwara State.
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case study
The New Nigerian Farmers Kwara State’s New Nigerian Farmers initiative is spearheading an agrarian revolution in the state and nationwide. The New Nigerian Farmers project has been the subject of unparalleled interest both within and outside Nigeria. Of all Governor Saraki’s initiatives, it was certainly the most ambitious and politically controversial, but to date has proved hugely successful and a ground-breaking template for the rest of Nigeria. The New Nigerian Farmers project has its origins in a 2004 pilot scheme known as ‘Back to Land’ that was part of a federal government initiative to kick-start the agricultural industry. At state expense, land was cleared and key ingredients such as insecticides and fertiliser were provided to farmers in an attempt to move them from small-scale production to commercial farming. However, the scheme ultimately failed due to both lack of technical expertise and, perhaps more importantly, a lack of real stakeholder incentive.
Governor Saraki realised that without finding a way to dramatically improve technical capacity and ensure the farmers had as much at stake as the financiers, it would be impossible to make an impact. Since 2001, the political turmoil in Zimbabwe left large numbers of white farmers without their farms or livelihood. The Governor saw that these farmers had generations of commercial farming experience in Africa and their skills were lying as fallow as their land. He immediately sent a delegation to the Zimbabwe Commercial Farmers’ Union (headed at that time by Mr Alan Jack) and enquired as to the appetite for a number of the displaced farmers to come to Kwara State with a view to restarting their farming livelihoods in Nigeria and, more importantly, creating a commercial farming hub in Kwara that would provide the base for capacity-building and development of the indigenous farming community. After a number of investigative visits, 13 farmers from Zimbabwe moved to Nigeria to form Shonga Farm Holding Ltd, named after the area in Kwara State where the farms were established. The company was originally formed as a Special Purpose Vehicle to facilitate the publicprivate partnership in respect of the commercial farming project of the Kwara State Government. One of the New Nigerian Farmers proudly showing off the butternuts he Subsequently, five major banks grows on his land. agreed to fund the project TradeInvest Kwara 2010/11
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through debt and equity financing options. The farmers were awarded long-term leases over the 1 000 hectares they each owned and the company became an independent entity with limited state ownership. The Shonga farms now operate poultry, arable and dairy enterprises, the dairy herd memorably arriving at Ilorin International Airport by cargo plane from South Africa. All the crop farmers have been increasing their yields year on year and crops at Shonga now include maize, soya beans, rice, cow peas, bananas, ginger The New Nigerian Farmers imported 800 Jersey cattle from South Africa that they plan to cross-breed with local species. and pineapples. The dairy syndicate includes a processing plant that is now fully operational. The most recent development at the Shonga The dairy farmers consist of five individual farms farms was the first-stage completion of the of 1 000 hectares each; the milk output from N2.9-billion irrigation project. The state these farms will be fed into the processing unit. government underwrote the project but the The processing plant forms the final stage in the federal government has promised to underwrite value chain of the milk produced by the dairy N800-million of the cost. Four of the 13 farmers. It was designed to take in and process Shonga farms now have irrigation and the rest approximately 11 million litres of raw milk per are expecting irrigation infrastructure to be annum. The unit is used to process milk into UHT completed in the next year. milk, yoghurt, butter and cream, depending on With between 3 000 and 4 000 people market demand. employed at each Shonga farm during harvest, The poultry farmers consist of four individual the impact of this commercial farming centre farms of 1 000 hectares each mainly focused in terms of local employment is obvious. As the on broiler production. The four farms jointly own surrounding transport infrastructure continues the feed mill and abattoir project, as well as the to improve and, crucially, the cold-storage climate-controlled poultry houses that are also facility at the Ilorin airport is completed, there is under construction. The abattoir has installed the potential for Shonga produce to become an capacity to slaughter and process 10 000 international export. birds per day and each farm intends to produce The New Nigerian Farmers project has been approximately 240 000 broilers per month. the catalyst in a quiet but steady agrarian Graham Hatty, one of the Shonga arable revolution in Kwara State. And with continued farmers, is presently selling over 60 tonnes of support from federal government and wider fresh cassava tuber per day to Nigerian Starch political support from other states, it has every Mills, which is in the process of establishing a chance of being the catalyst in a nationwide processing factory in Kwara. agrarian revolution.
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The Chellarams Plc motorcycle assembly plant in Ilorin is one of the many industries that Kwara State has attracted in recent years.
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s with the rest of Nigeria, many of Kwara State’s once thriving industries became moribund by the end of the 20th century. This is largely because government could no longer run these public enterprises profitably. The situation was worsened by Nigeria’s powersupply problems which forced manufacturers to make use of generators – a very costly way of generating electricity. TradeInvest Kwara 2010/11
Kwara State’s manufacturing sector has, however, entered a new era, with many of the once inactive companies being revived and completely new industries springing up across the state. The recently completed Ganmo substation has greatly improved the powersupply situation in the capital Ilorin, with many manufacturers saying that they seldom have to make use of generators. The focused leadership of the current administration has also attracted
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Generous natural and mineral resources, good power supply and a progressive government have laid the foundations for the industrialisation of Kwara State.
many businesses and established Kwara State firmly on Nigeria’s economic map. With abundant mineral resources and vast areas of arable land, investors will find no shortage of raw materials for industrial operations. And because the state is situated in central Nigeria, with adequate road networks to both the north and the south, manufacturers and miners have a large potential market for their goods. Tertiary institutions such as the Kwara
State University and the University of Ilorin also provide a steady stream of graduates that can be employed by investors.
Industry Kwara State’s industrial sector has seen a number of high-profile investments in the past decade. A South African furniture manufacturer partnered with the state government to form Kwara Ethnix Designs – one of Nigeria’s leading
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furniture manufacturers. The factory supplies state-of-the-art furniture to five-star hotels and offices across Nigeria. The newly completed Ilorin International Airport and its accompanying cargo terminal will enable the firm to export to its European clients directly from Kwara State. Another notable investment has been the recent restoration of Jebba Paper Mills by MINL Limited. The company purchased the assets of the erstwhile Nigerian Paper Mills, which halted operations 15 years ago, in 2007 and will have injected $75-million of fresh capital into the facility once all phases are complete. MINL plans on supplying paper to the entire West Africa region. Further industrial concerns in the state include United Foam Products, Global Soap & Detergents Industry, Tuyil Pharmaceutical Industries which manufactures a range of pharmaceuticals and the popular Visleri Table water brand, and the Chellarams motorcycle assembly plant, to name a few. The state government is actively looking for investment in fertiliser production, kerosene and gas stove manufacturing, and the resuscitation of a match-manufacturing plant. It is willing to partner with investors on some projects, although it prefers the private sector to hold the majority share in the business.
stamping out illegal mining in order to give genuine investors access to these resources. Good deposits of limestone and gypsum exist in the region and the establishment of a cement factory has the potential to be an especially viable business. A full feasibility study on cement production in the state has been conducted and the report is available to interested investors. Foreign interest in such a facility has already been received but there is time for other investors to submit their proposals. Nigeria currently imports close to half of the total cement used in the country. With the long-term growth of the construction industry looking positive, cement will be in huge demand for years to come. Significant deposits of gold are found in Kwara State and the state government is looking for investors to partner with local miners already in possession of a mining licence. Exploration activities for new mineral deposits are being conducted on an ongoing basis and interested investors should contact the state government for more information on these. Incentives Besides the incentives offered by Kwara State, Nigeria’s federal government is stimulating investment in the solid-minerals sector with business-friendly policies aimed at investors. These include: • A three- to five-year tax holiday • Low income tax of between 20% and 30% • Deferred royalty payments depending on the magnitude of the investment and the strategic nature of the project • Possible capitalisation of expenditure on exploration and surveys • Extension of infrastructure such as roads and electricity to mining sites • The holder of a mining lease shall, where qualified, be entitled to: o Depreciation or capital allowance of 75%
Solid minerals With abundant solid minerals, Kwara State offers many opportunities to mining companies and firms looking to use these raw materials as inputs. Mineral resources found in the state include limestone, marble, feldspar, gypsum, kaolin, columbite/tantalite, gold, quartz, mica, talc and granite, all of which could be exploited to form the base for industrial development in the state. Current mining activities are mainly on a small-scale basis, with some of the miners operating illegally. The administration is busy TradeInvest Kwara 2010/11
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of the certified true capital expenditure incurred in the year of investment and 50% in subsequent years o Investment allowance of 5% o Exemption from payment of customs and import duties o Expatriate quota and resident permit for
approved expatriate personnel • In addition to roll-over relief under capital gains tax, companies replacing their plants and machinery will enjoy a 95% capital allowance in the first year with 5% retention value until the assets are disposed; 15% will be granted for the replacement of an asset.
Mineral resources in Kwara State Mineral
Location
Uses
Columbite/ tantalite
Ilorin South, Patigi, Moro and Irepodun Local Government Areas (LGAs)
Columbite is used in alloys for improved strength
Feldspar
Irepodun LGA
Feldspar is used in ceramics, as an ingredient in the glass sand batch, and as a bonding agent in the manufacture of bonded abrasives
Gold
Patigi, Ekiti and Kaiama LGAs
Gold is used in jewellery and as an industrial metal
Granite
All LGAs
Granite is important as a building material because of its high durability and aesthetic qualities
Gypsum
Edu LGA
Gypsum is an essential mineral for the manufacture of cement
Kaolin
Ilorin East, Patigi, Edu, Asa and Isin LGAs
Kaolin is used in the production of ceramics, paint, rubber, plastics and paper
Limestone/ marble
Ifelodun LGA
Limestone is the most important raw material in the manufacture of cement. Marble is used for sculptures and in building materials
Mica
Irepodun LGA
Mica is used in a number of electrical appliances. It also has various applications as an insulating material
Quartz
Irepodun, Patigi and Ifelodun LGAs
Quartz is used in electrical components, optical lenses, abrasives and in building stone
Silica sand
Moro, Patigi and Offa LGAs
The most common use of silica sand is in the manufacture of glass
Talc
Kaiama and Irepodun LGAs
Talc is used in body and face powder, as a filler in paper manufacturing, as well as in the production of stoves, sinks and electrical switchboards
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Furniture manufacturer Kwara Ethnix Designs is
Nigeria’s construction boom has created a large demand for
benefiting from the significant improvement in power
cement. The Kwara State Government is seeking investors to
supply in the state.
establish a cement-manufacturing facility in the state.
Investment opportunities in industry and solid minerals Cement factory Kwara State has proven deposits of gypsum and limestone, the two most important rawmaterial inputs for cement production. A feasibility study found that a cement factory has the potential to be very profitable. Estimated national cement consumption for 2008 stood at 13.4 million tonnes, of which only 46%, or 6.2 million tonnes, was produced locally.
currently brought in from the outside. An immediate market for fertiliser therefore exists, although there is also a high demand for fertiliser in the rest of Nigeria. Mining and processing of kaolin Kaolin, otherwise known as china clay, is a white, inert material which is chemically a hydrous form of aluminium silicate. Commercial deposits of kaolin exist near the towns of Ilorin, Dagbalodo, Echiwada, Tsaragi, Otte and Isanlu-Isin in Kwara State. Kaolin is used in the manufacture of paper, plastics, fertiliser, rubber and paint.
Gold mining Currently there are no significant gold-mining activities in the state and most miners only operate on a small scale. It is recommended that new investors partner with local miners already in possession of a mining licence.
FOR MORE INFORMATION, CONTACT
Fertiliser production The agriculture sector is growing by the day and there is a high demand for fertiliser. A large percentage of the state’s population is dependent on agricultural activities for their livelihood. All fertiliser used in the state is
TradeInvest Kwara 2010/11
Fela Ibidapo, Special Assistant to the Executive Governor on Investment Email: felaibidapo@kwarastate.gov.ng TradeInvestNigeria: www.tradeinvestnigeria.com info@tradeinvestafrica.com
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case study
Furniture manufacturer invests in Kwara
clients throughout the whole of Nigeria. Last year we completed the Federal Palace An investment by a South African Hotel in Lagos. We have also company in a furniture factory bears just completed the Ikoyi Hotel,’ witness to what is possible in Kwara he explains. State’s manufacturing sector. ‘There is a lot of opportunity Kwara Ethnix in Nigeria and the economy Designs CEO, When a South African company took over the is growing. Ilorin has grown Frank Cross. moribund Kwara Furniture in 2005, the facility tremendously from the time was completely run-down. Five years later, I first started coming here. At Kwara Ethnix Designs is manufacturing furniture one time I was one of the very few expatriates in for the top hotels and businesses in Nigeria Ilorin and now they seem to be everywhere.’ and even making plans to export to Europe On his plans for the future, Cross explains that and America from its base in the Kwara State the company is looking at using Kwara State as capital, Ilorin. a base for exporting. ‘We have clients based in Ethnix Designs made its entry into Nigeria New York, London and Europe who deal with our when it was approached by the Kwara State South African company. It has always been our Government to invest in a furniture factory. aim to do a lot of the work for our London-based ‘They knew about our company in South Africa customers from Kwara State. We can produce the and suggested that we invest in a factory here,’ same quality products so it makes sense to be explains Kwara Ethnix Designs CEO Frank Cross. exporting to the UK from here. Cross says the company focuses on the ‘We have a new cargo terminal at the airport upmarket end of Nigeria’s furniture business. which we expect to use to bring in air freight. ‘We do a lot of work for hotels and corporate We try to buy as much raw material as we can in Nigeria but there are certain products that we need to purchase overseas. We are now looking at bringing in a Boeing 747 using the cargo-handling facilities here,’ says Cross. With an abundance of raw materials and a massive population, Kwara State has the potential to be a gold mine for manufacturers. With the state government making the right noises in order to improve the manufacturing sector, companies similar to Kwara Ethnix Kwara Ethnix Designs makes use of the state’s large skilled and semiDesigns might soon be establishing skilled workforce. themselves across the state.
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Ilorin International Airport has been upgraded to a modern building with excellent facilities.
I
n recent years, Kwara State’s infrastructure has seen a massive transformation. Roads have been built and upgraded, the power situation has greatly improved and new facilities such as Ilorin International Airport have been constructed. However, the state still has a long way to go to arrive at where it wants to be and there are many business and investment opportunities in infrastructure where foreign and local
TradeInvest Kwara 2010/11
companies can partner with the state. Business opportunities exist in various projects that would enhance the economic development of the state and improve the wellbeing of the population. These include road construction, water supply, power generation and distribution, and waste management.
Power generation and distribution Power-sector reform is part of former president
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Kwara State offers a range of business and investment opportunities in the provision of infrastructure.
Umara Yar’Adua’s seven-point agenda and the country is working hard to improve the current situation. Great strides have been made to enhance power generation and distribution in Kwara State. The recent completion of the Ganmo substation and the rural electrification programme bear witness to this. The state can, however, not rest on its laurels and continued investment in the sector is necessary. Growing industrial activity
is sure to place further pressure on electricity provision in the future. The state is considering the establishment of an independent power project to strengthen power supply. Given the large costs involved in constructing a 600-kilometre gas pipeline, the state is examining coal-fire options. There are good coal deposits in the region and the government has been able to negotiate access rights. Discussions are currently under way with
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The new flyover in Ilorin will greatly reduce traffic congestion in the state capital.
Truck terminal
a company in South Africa as a potential partner in such a project. The administration is also planning to spend about N1.2-billion on a community-based electricity-provision scheme whereby private contractors will supply electricity so that small-scale industries can benefit. Investigations into alternative or clean energy are in progress and the sub-sector offers potential opportunities to foreign and local investors. New solar-powered street lights were recently installed on some of Ilorin’s major roads.
The state wants to capitalise on its location in the centre of Nigeria and as a gateway to the north and the south of the country. Investors are currently sought to establish a truck terminal a few kilometres from the airport. An area of 90 hectares has been acquired and the architectural, structural and mechanical engineering designs have been completed. The facility will have space for 1 000 trucks, a workshop, a truck wash, two petrol stations and a motel, and will also feature an electronic tracker system. In short, it will cater for all the needs of transport and logistics companies. In addition, there are also plans on the table to integrate the terminal with a bus depot for interstate buses coming into Ilorin. Surveys show that about 3 000 trucks pass along the road next to the proposed truck terminal every day. The facility will also complement the cargo terminal at Ilorin International Airport.
Transport and logistics infrastructure One of the state government’s most important ongoing projects is to establish Kwara State as a logistics and cargo hub. The construction of the cargo terminal at Ilorin International Airport and the proposed truck terminal are central to this vision. TradeInvest Kwara 2010/11
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Road construction An unprecedented number of roads have been built in Kwara State and the state government will continue with this initiative until every road in the state is of a high standard and traffic congestion is at acceptable levels. There are business opportunities for reputable contracThe Ganmo substation was recently completed by the Kwara State Government, and tors to assist the residents of Ilorin currently enjoy close to 24 hours a day of uninterrupted power supply. state government with these projects. With the anticipated growth of Kwara State’s The state recently partnered with Setraco agriculture and manufacturing sectors, there Nigeria, a member of the Setraco International will be a large demand for transport and a facility Holding group of companies, for the construction such as the truck terminal. of a new flyover in Ilorin.
INVESTMENT OPPORTUNITIES IN infrastructure Truck terminal The state government is looking to partner with private investors to construct and operate a truck terminal near Ilorin International Airport. It plans to establish a special purpose vehicle which in turn will lease out different facilities at the truck terminal. This way any private company willing to invest will be able to earn a good return on investment.
projects. It is of particular importance to the administration to improve electricity supply in the rural areas of the state in order to boost economic activity. Alternative power provision is also an area that holds considerable potential in Kwara State. FOR MORE INFORMATION, CONTACT Fela Ibidapo, Special Assistant to the Executive Governor on Investment Email: felaibidapo@kwarastate.gov.ng TradeInvestNigeria: www.tradeinvestnigeria.com info@tradeinvestafrica.com
Power generation and distribution Investors in the energy sector have the opportunity to collaborate with the state government in various power generation and distribution
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Various opportunities exist to invest in the development of hotels and commercial property in Kwara State.
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raditionally a rural area with mostly civil-service workers, Kwara State is rapidly developing into a bona fide business destination. Property developers have also turned their attention to the state as a location for residential and commercial developments. The state has made the buying and developing of property much easier through the liberalisation of the Certificate of Occupancy (CoO). The
TradeInvest Kwara 2010/11
CoO is essentially a lease-hold title, previously notoriously difficulty to obtain. In the past, potential investors had to wait for long periods for a CoO to be issued, but because of recent reforms the document can now be issued in as little as two weeks. These enabling measures have greatly encouraged private developers to partner with the state government in property development. As part of efforts to further
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Property developers are capitalising on the Kwara State success story.
Residential property
stimulate investment, an embargo on the issuance of Certificate of Temporary Occupancy has also been lifted. The state government is attaching particular importance to public-private partnerships in property development, especially in the area of housing delivery. The administration realises that government lacks expertise when it comes to business and therefore wants to tap the private sector’s skills and experience.
There is a large demand for housing in Nigeria, and Kwara State is no exception. The state government, often together with private-sector partners, has completed a number of housing developments which have been well received by the local population. It is hoped that the recent establishment of the Kwara State Housing Corporation will further accelerate the construction of housing units.
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A recently renovated luxury room in the Kwara Hotel, a well-established and key component in the state’s tourist offering.
Mandate Estates
comprise 250 units for medium-income earners. The entire project is fast nearing completion.
Mandate Estates I, II and III have been constructed across the three senatorial districts of Kwara State. Mandate Estates I and II have been financed solely by the state government, while the state partnered with the private sector for the construction of Mandate Estate III. The houses were built for permanent secretaries and political office holders.
Emirate Estate Emirate Estate in the Oloje area of Ilorin is a workers’ estate with 1 000 one-, two- and three-bedroom units. The project is expected to be completed during 2010 and the units will be sold to civil servants through a National Housing Fund loan. The total project cost is N2.5-billion.
Harmony Estate Harmony Estate in Ilorin will consist of 500 units of two- and three-bedroom bungalows. Developed as a public-private partnership between Delrot Nigeria Limited and the Kwara State Government, the project made use of cost-effective building technology from Hydraform, a South African company. The first 100 two-bedroom units were recently completed.
Commercial property Nigeria’s commercial real estate market is moving in a direction of increased sophistication. Kwara State is attracting more and more businesses which are boosting demand for commercial property. The opening of the Ilorin branch of the Nigerian Stock Exchange, for example, has led to a number of stock-broking businesses opening offices in the state capital. Kwara State has many hotels and guest houses,
Royal Valley Estate Royal Valley Estate Phases I and II, in Ilorin, TradeInvest Kwara 2010/11
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most notably the legendary Kwara Hotel with its various facilities. Guthrie Nigeria Limited recently redeveloped the old Satellite Motel in Ilorin, which was upgraded to a three-star facility with 100 chalets. The project was also a public-private partnership with Guthrie as the core investor with a 70% stake, while the remaining 30% was retained by the state government. The total cost of the redevelopment was Colourful new housing estates are transforming Kwara State’s landscape. N625-million. In the area of retail developments, some of the phases of the Ilorin Ultra One of the biggest problems with property Modern Market have been completed. The idea development in Nigeria is the lack of proper behind the market was to bring under one roof facilities management. This is an area that holds all unorganised trading points scattered across great potential as Nigerians start to adopt a the Ilorin metropolis. Further opportunities for maintenance culture. International giant WSP the construction of state-of-the-art retail Group has invested in this area, as well as South centres exist. Africa-based Broll Properties and the JHI Group.
INVESTMENT OPPORTUNITIES IN property development Housing development Private developers have the opportunity to partner with the state government in the provision of affordable social housing. Although a number of housing estates have been constructed in recent years, there is still a significant housing shortage.
bank and 50ha on the west bank. Planned facilities for the development include a conference centre, a signature golf course with residential units, a shopping mall, a holiday resort and an amusement park.
FOR MORE INFORMATION, CONTACT
Asa Dam development The state government is inviting local and foreign investors to invest in a mixed-use development at Asa Dam outside the state capital Ilorin. An area of 250 hectares has been identified for the project – 200ha on the east
Fela Ibidapo, Special Assistant to the Executive Governor on Investment Email: felaibidapo@kwarastate.gov.ng TradeInvestNigeria: www.tradeinvestnigeria.com info@tradeinvestafrica.com
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overview
Opportunities for investors in housing Private-public partnerships in housing development in Kwara State offer excellent opportunities to private investors.
Kwara Geographic Information System (KWAGIS)
Kwara State Government is actively looking for private-sector investors to partner it in the provision of housing. A simple procedure has been developed for private investors to follow should they wish to invest in property development in Kwara (see below). Investors stand to recoup their investment based on the modality agreed upon with the housing beneficiaries. The selling price will be determined by cost of the project plus the profit margin. A number of private companies have already started work on providing housing in public-private partnerships. These companies include International Business Bureau (Royal Valley Estate, Kulende), Delnot (Harmony Estate, Akerebiata), TY Bamidele (Amoyo) and Greenaco (Airport Road).
In line with the global best practices of computerisation of land records, the present administration has successfully installed a computerised land record system with survey digital equipment through KWAGIS. This has made the documentation process very efficient and accurate. Issuance of Certificates of Occupancy (CoO) with its unique security features has since commenced. The state government is ready to make land available to investors and issue Certificates of Occupancy within four weeks to attract more investors to Kwara State.
Investment opportunities in housing and urban development New Government Residential Area (GRA) The master plan for the new GRA, which is located at Budo Osho along NNPC Pipeline Tanke, Ilorin, has been prepared. The project involves the provision of 1 308 plots with good infrastructure. A financial institution has been engaged that is ready to partner with the state government as a form of equity share. Yolas Consultants has been commissioned for the supervision of the phase A1, comprising some 35% of the available plots. Opportunities now exist for investors to partner with the state government TradeInvest Kwara 2010/11
in financing the infrastructural facilities of the remaining plots. Provision of housing In its efforts to meet the housing needs of the populace, the Kwara State Government embarked on the direct construction of Mandates I, II and III housing units. In addition, private housing estate developers have also been involved through a public-private partnership initiative. The state government is ready to partner with investors in the provision of houses in the new GRA.
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Opportunity for property developers: the three-phase development of the Mandate Estates has proceeded well across each of the three senatorial districts of Kwara State. Designed primarily to house civil servants such as permanent secretaries, the first two phases of the project were funded entirely by the state while the third phase was a joint public-private venture. There are many opportunities for private property developers to partner the state in developing housing estates.
Property development requirements The Kwara State Ministry of Lands and Housing has prepared a step-by-step qualification procedure for prospective developers wishing to invest in property development in the state.
• Prototype building plan of the proposal and layout plan • Evidence of financial capability such as letter of commitment from credible financial institution(s) showing their willingness to fund or partner in the funding of the proposal • Evidence of registration with Federal Mortgage Bank and primary financial institution • Evidence of membership of the Real Estate Development Association • Plans for the provision of affordable housing with due consideration of the social and financial position of average Kwarans • Identification of at least three suitable sites for the proposal. Location and site plans of such sites to be submitted to the Ministry
Requirements to be submitted by prospective developers: • Application form (N1 000) to be completed by developer • Certificate of Incorporation • Current Tax Clearance Certificate • Site plan of the proposed site • Feasibility and Viability Report • Environment Impact Analysis Report • Financial plans and proposal for source of funding • Company profile, including previous experience in housing delivery
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Pupils at the St James Primary School in Ilorin are benefiting from the reforms in Kwara State’s education policy.
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wara State is investing heavily in all areas of its education sector, from improving the standard of teaching in its primary and secondary schools to establishing new tertiary institutions and technical-skills centres. The state government, through its Every Child Counts programme, is tackling issues and challenges around quality education at primary-school level. This is part of the broader
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and multi-year Kwara State Education Reform Agenda. This includes the reform of the primaryschool curriculum to focus more on literacy and numeric skills; improving the quality of teaching in schools; and the provision of key textbooks, among other goals. A major step forward for the children of Kwara was achieved with the delivery in 2009 of at least five free textbooks to each primary-school child in the state. In support of growing the cul-
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Education in Kwara State is focused on providing students with real skills that can be utilised to boost economic growth.
ture of reading, a three-day book fair has been inaugurated by the Kwara State Ministry of Education, Science and Technology in collaboration with the Nigeria Educational Research and Development Council (NERDC). This is held in September and gives book publishers an opportunity to showcase their products. A Teacher Needs Assessment survey conducted in 2008 has served as a valuable benchmark for structured improvement in the
years that followed. Agencies such as the World Bank routinely engage in education support interventions in Kwara State, a sign that the policies of the state government are trusted to deliver. The Education College at Oro has been the subject of reform initiatives, ongoing teacher training has been conducted and improved monitoring of performance has been achieved by the establishment of a Quality Assurance Bureau.
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not just about providing education, but about developing the state’s human resources on a very targeted level. KSU was established because within a few years the existing University of Ilorin will no longer be able to cope with the amount of students that the secondary schools are rolling out. With the amount of effort currently put in to improve the quality of education at primary- and secondary-school level, it is foreseen that the number of students qualifying for university education will increase significantly. From conception in the year 2004 to the passing of the required legislation in the Kwara Legislature, to the appointment of staff, the idea of Kwara University came to fruition in record time. By June 2009, Vice Chancellor Abdul-Rasheed Na’Allah, formerly a professor of African and African American Literatures and Comparative Poetics at Western Illinois University, was in his position. Staff underwent a rigorous selection process and by December 2009 the university was in a position to begin lectures. The university operates on three campuses and comprises five academic colleges: • Education • Pure and Applied Science • Agriculture and Veterinary Science
The governor of Kwara State, His Excellency Dr Abubakar Bukola Saraki, examines building plans for the International Aviation Centre.
Tertiary education While primary education has been a key goal for several years, the state has not neglected the training and tertiary sectors. The strategy for tertiary education is based on the premise that no society can compete on a global level without human resources that exhibit market relevant skills. The administration’s commitment to this philosophy is evident in the recent establishment of the Kwara State University, the International Aviation College and the planned International Vocation Centre. Because of the importance of agriculture in Kwara State, there is a great need for training in this industry. Teaching modern farming techniques is not sufficient, however, and it is particularly important to train students who can work as business managers in the agriculture sector. Technical skills are also needed in agroallied industries.
Kwara State University The new Kwara State University (KSU) is a key component of the state’s plan to boost economic growth. It is envisaged that a larger number of skilled professionals in the state will lead to an increase in investment from companies that require an educated workforce. It is therefore TradeInvest Kwara 2010/11
Kwara University’s new administration block in the final stages of construction. The university is already establishing itself in international academic circles.
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• I nformation and Communication Technology • Arts, Humanities, Management and Social Sciences. In addition, there are the following specialist institutes and centres: Institute for Asian Studies; Centre for Human Rights and the Law; Centre for Modernity and Religion; Centre for Art Preservation; Centre for Innovation and International Studies; Centre for Sponsored Projects; Centre for Bio-Computational Application; and Entrepreneurial Centre. The motto of the university is ‘The University For Community Development’. Every student of geography, pharmacy, history or medicine will be required to do some community work as part of their preparation for their degree. Collaboration with other tertiary institutions is central to KSU’s plans. It is currently in discussion with Essex University in the United Kingdom to enable KSU to award degrees of Essex University in Nigeria, especially in fields such as business administration and accounting. The Nigerian army’s education college at Sobi is situated near to the Kwara University and plans are under way for the two institutions to cooperate. In a very short time-frame, KSU has established links with some of the most prestigious universities in the world: • Harvard, from where the provost of the College of Humanities, Management and Social Sciences was hired, is exploring research collaboration in the area of African oral traditions and performance, and in jointly establishing an African Diaspora Studies Centre. • African Week will be run in Bangkok in 2010 by KSU in a joint venture with Thailand’s Ministry of Education and Thammasat University, the second oldest in Thailand. • Memoranda of understanding are being devel-
The Bishop Smith Memorial Senior Secondary School was one of the first schools to benefit from the renovations that came about as part of the Kwara State Education Reform Agenda.
oped for academic collaborations and student and lecturer exchanges with Thammasat University and the Thai Chamber of Commerce and Columbus State University, USA. • Scholars from Princeton and Harvard gave lectures at KSU in the first semester of the university’s academic life.
International Vocation Centre The Kwara State Government is currently in the process of establishing an International Vocation Centre (IVC), based on the Dubai Knowledge Village. The administration is in talks with United Kingdom-based TTE Technical Training Group, the company that established the Dubai facility, to run a similar project in Kwara State. The idea is to develop people’s technical skills to enable them to work in industries such as oil and gas, manufacturing, tourism, etc. The chief areas of expertise to be trained at the IVC are mechanical engineering, electrical engineering, industrial engineering and domestic engineering. Domestic engineering refers to technicians dealing with residential houses and other forms of accommodation such as apartment blocks. Industrial will be technical people who deal with
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working in the technical field. The centre forsees a day when plumbers and electricians will arrive at a venue in a neat uniform and be able to identify themselves and prove their qualifications to the satisfaction of the client. And then do the work to a good standard. The City & Guild certification will be the benchmark used to set the standard. Courses will run for two years to be followed by experience in the work place and an optional third year to consolidate the learning process. Some of the equipment to be used at the centre will be new but some older machinery will deliberately be part of the training environment. This is to ensure that students have opportunities to maintain and repair equipment, thus making them more confident in working with machinery. The centre’s location is close to the capital city of Ilorin at Idofio which is in the Ifelodun Local Government Area. Two major sites spread across three hectares will comprise the main workshops and there will also be an administration block. In setting up the centre, a skills transfer programme will take place whereby foreign consultants will work with locals over a period of two years.
Kwara’s International Vocational Centre will develop skills in wide range of technical and mechanical fields while the free textbook programme for schools is already helping to lift educational standards.
things related to big construction projects. There will be a real industry connection between the Vocation Centre and the market. It is expected that businesses will establish themselves in Kwara State because of the skills training offered by the Vocation Centre. The Vocation Centre will establish Kwara State as the hub for technical skills training in Nigeria and the whole West African region. Two major academic streams will be offered at the centre: students that will go into big industries like flour mills, international conglomerates like Coca-Cola and Cadbury or big manufacturing companies and those graduates who will start their own business. One of the chief aims behind the establishment of the centre is to uplift the quality of workmanship and the accountability of people TradeInvest Kwara 2010/11
International Aviation College A new International Aviation College will soon commence operation in Kwara State. The college will train pilots for the aviation industry with the help of highly qualified instructors, and equipment such as training aircraft and modern simulators. With an immense shortage of pilots across the world, the state government expects the project to make a huge contribution to the aviation industry. The number of airlines operating in Nigeria has increased considerably in recent years and there is a great demand for trained pilots. It is expected that airlines across Nigeria
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and West Africa will use the aviation college for full and recurrent training of their pilots.
Integrated Youth Training Farm The success achieved by the ‘New Nigerian Farmers’ in Shonga has led to the establishment of the Integrated Youth Training Farm (IYTF) at Malete. The institution is focused on teaching students modern agriculture techniques. There is also a strong focus on the business side of running a profitable commercial farming operation. After students graduate, they are each given five hectares of cleared farm land and a loan to help them resettle as commercial farmers.
‘Every Child Counts’ is the motto spurring on every teacher in Kwara State.
Partnership and investment opportunities in education Equity in the International Aviation Centre The Kwara State Government is looking for investors to take up equity in the International Aviation Centre. The project is a public-private partnership where the state government will cover the initial cost. When operations begin, the administration will begin to recover funds by selling equity so that government’s share in the project will be reduced to no more than 50%.
and establishing a publishing operation. Skills training facilities The private sector is invited to provide additional skills training facilities in Kwara State. A growing demand among the state’s residents to acquire market-related skills makes any private education facility a viable business opportunity. The Kwara State Government is looking for private investors to partner it in the rolling out of the Vocational Centre. Demand for skills training is very high and the project managers expect good returns for investors. The expected date for the commissioning of the project is December 2010.
Partnership with KSU The new Kwara State University is currently in talks with the University of Essex in the United Kingdom to offer its degrees in Nigeria. The KSU is also looking to establish similar academic partnerships with other international institutions.
FOR MORE INFORMATION, CONTACT
Support services to KSU Investors have the opportunity to deliver support services to the KSU. Areas that are open for investment include providing student accommodation, transportation services
Fela Ibidapo, Special Assistant to the Executive Governor on Investment Email: felaibidapo@kwarastate.gov.ng TradeInvestNigeria: www.tradeinvestnigeria.com info@tradeinvestafrica.com
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Kwara State Government is committed to providing high-quality healthcare to its citizens.
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mproved access to high-quality healthcare for all citizens, with an emphasis on primary healthcare provision, is the stated goal of the Kwara State Government. At the same time, a major initiative has been launched to introduce a world-class Diagnostic Centre to the state, which will serve to centralise all procedures requiring laboratory tests, and to improve the performance of all health facilities. One of the main targets in healthcare provision is to achieve the Millennium Development Goal of reducing maternal and child mortality with regard to malaria. In 2008, a state-wide campaign was launched which saw to the free distribution of insecticidetreated nets and free malaria drugs to pregnant mothers and to children under the age of five. This is an ongoing programme that is being expanded every year. Several general hospitals have been rehabilitated in Afon, Patigi, Lafiagi and Kaiama. Similar initiatives saw to improvements at primary health centres in Osi, Alapa, Rogun, Afon, Oju-Ekun, Omoda, Yashikira, Banni and Araromi Opin. Sobi Specialist Hospital has been especially upgraded to train House Officers. The Community Health Insurance Scheme that was first rolled out in Shonga district in 2006 has been extended to Afon and Lafiagi to provide health-insurance cover to rural
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dwellers. Construction began in 2009 of the second phase of the Oke-Ode School of Nursing.
Primary healthcare The primary healthcare programme embraces all aspects of disease prevention and control through the state’s epidemiology units. There are six divisions with 35 units serving all parts of the state. Many activities in the healthcare sector are sponsored by international agencies such as WHO, UNICEF, HYGEIA and others.
Among the measures taken to improve the quality of primary healthcare in Kwara State are: • Training and re-training of staff • Provision of free drugs for under-five children and pregnant women • Rehabilitation of hospitals and staff quarters • Employment of qualified medical doctors and other health workers The Kwara State Community Health Insurance Scheme mobilises community members to participate, and has the full involvement of the Kwara State Government in partnership with the HYGEIA organisation. The principal benefit
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Kwara State Governor, His Excellency Dr Abubakar
All children under the age of five receive free drugs to
Bukola Saraki, is working with organisations such as
help fight malaria. This is in pursuit of the Millennium
the Bill and Melinda Gates Foundation to improve
Development Goal of reducing child mortality.
healthcare in the state.
for citizens is to receive subsidised treatment The state government has been very active in the field of preventive medicine. Through targeted programmes it has distributed insecticidetreated nets, free drugs for under-five children and pregnant women, and seen to the distribution of Ivermectin and vitamin A supplement.
There is scope for further private investment in the project on the basis of public-private partnerships. It is estimated that the revenue potential of the centre could be as high as N10-million per month. Further private investment in the project would make it even more effective and would contribute to the continuity of the programmes.
Diagnostic Centre The proposed new Diagnostic Centre is intended to serve all the citizens of Kwara State (be they primary, secondary or tertiary patients). Private healthcare patients will have access to the centre. The centre is conceived as a regional referral facility that will serve all the other states in the Nigerian federation. The international partner already on board with the project, which is expected to come on stream in 2010, is MedeQuip Medical Services, a company specialising in these services from the United States of America. This company is providing the concept, intellectual capacity, management and oversight for technology transfer. Staff will be supplied by MedeQuip for the first four years of the centre’s operation.
Services that will be offered at the centre • All special medical laboratory tests: liver, renal and heart function • Hormonal tests • Infertility tests • Haematology tests • Histopathology tests • Ultrasound scan • X-ray tests • Blood banking services • Referral centre for all states medical laboratories
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Kwara State has a large number of tourist sites that can be further developed by investors.
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reas of extreme natural beauty combined with fascinating historical sites and rich cultural traditions give Kwara State the potential to be a world-class tourist destination. The current administration is determined to use tourism as a vehicle to create employment and drive development into the rural areas of the state. Years of military rule and an over-dependence on the oil sector have left Nigeria’s tourism
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sector relatively undeveloped. With democracy now firmly established and a genuine commitment to diversify the economy, the tourism industry looks set to grow at a rapid pace. The state government wants to attract both foreign and Nigerian tourists to its numerous sites and cultural events. There is a growing trend of Nigerians holidaying within their own country, and Kwara State is positioning itself to take advantage of this. As the state becomes
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The River Niger is one of Kwara State’s many natural assets.
more prominent as a business destination, the tourism industry will also benefit from an increase in visitors. Good transport infrastructure means that visitors have no difficulty in travelling to Kwara State. Ilorin International Airport currently has flights to and from Abuja and Lagos daily from Monday to Friday. The state’s central location also makes travelling by road a viable option. In order to stimulate investment in the tour-
ism sector, the state government has begun to improve infrastructure around the proposed tourist sites.
Major tourist sites and opportunities Owu Waterfall
This is one of the highest and most spectacular waterfalls in West Africa and is sometimes referred to as the ‘Wonder in the Wilderness’. A perennial waterfall, it cascades from a height of
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around 120 metres to form a pool of ice-cold water at its base. The site has a beautiful landscape and offers visitors a refreshing atmosphere. The waterfall is capable of generating huge revenue from local and foreign tourists. It is located at Owa Kajola in Ifelodun Local Government Area.
• The mineral resources within the area, previously mined illegally, would be opened to the world and would pave the way for an increase in revenue generation. • It would create employment opportunities for the local community and Kwara State.
Benefits of Owu Waterfall
Development required at Owu Waterfall
The benefits derivable from the development and promotion of the Owu Waterfall are enormous: • The waterfall is capable of generating huge revenue for both the state and the federal governments through visits from local and foreign tourists to the site throughout the year. • The development of the site would promote Kwara State in national and international tourism markets, thereby enhancing the image of the state and Nigeria. • It would further encourage the development of infrastructural facilities within the communities at or near the site, eg roads, electricity, water and communication systems.
A wide range of investment opportunities exist whereby private partners can contribute to the further development of the site. The development required in order to turn Owu Falls into a standard holiday resort is as follows: • Construction of roads from Oke Onigin via Isanlu-Isin to Owa Kajola and the waterfall (33km) • Construction of alternative roads from Sabaja-Isin to Owa Onire to the site (14km) • Construction of an international hotel • Restaurant and snack bar • Swimming pool • Botanical garden/mini zoo • Recreation park • Wildlife park • Conference hall • Staff quarters • P rovision of utility vehicles and package tour vehicles
Imoleboja Rock Shelter
The area surrounding the Owu Waterfall has the potential to be developed into a foremost tourist destination.
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The Imoleboja Rock Shelter is a massive granite rock with numerous chambers, including a main hall, which can accommodate up to 100 visitors at a time. The imposing granite form is located in Odo-Owa in the Oke-Ero Local Government Area and is a very popular picnic spot. A part of the
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rock shelter has an inner slab that forms a staircase which leads to an upper floor where several other compartments are found. ‘Imoleboja’ means ‘the spirit has built a house’, and the structure has played various roles in the cultural life of the people, from providing shelter during inter-tribal wars to serving as a traditional hideout for maidens who engaged in pre-marital relations and became pregnant.
The Ilorin Central Mosque is one of Kwara State’s most important religious sites. Planning work to refurbish and expand the building has already started.
Benefits of Imoleboja Rock Shelter
• The site needs to be cleared and fenced with a gate put in place • Bar, restaurant or canteen • Construction of 20 chalets for tourist accommodation • Landscaping of surroundings • Provision of infrastructure
• The developed site would become a composite cultural tourism centre encompassing activities such as bead and soap stone production, arts and craft workshops, etc. • It would further increase the revenue of the state. • It would bring direct development to the local community and other multiplier effects of tourism. • It would also transform the whole area by attracting faster development of infrastructural facilities as well as create job opportunities.
Patigi Regatta Festival The Patigi Regatta Festival is a glamorous cultural event prominent among the Nupe communities of Kwara, Niger and Kogi States. It features fishing, swimming competitions and canoe paddling. This festival has the potential for attracting both domestic and international tourists to the state. With a view to making the festival an annual event, the Kwara State Government some years ago constructed a motel, an executive lodge and VIP chalets some distance away from the river where the Regatta Festival is staged.
Development required at Imoleboja Rock Shelter
Investors are invited to develop the Imoleboja Rock Shelter into a foremost tourist attraction by establishing a recreation park and cultural centre. The site is located at Odo-Owa, about a 90km drive from Ilorin. The rock shelter requires the following: • Improvement of about 3km of the road from Odo-Owa Iloffa to the site
Benefits of the Patigi Regatta Festival
With the revival of the celebration of the Patigi Regatta Festival as an annual event, the state
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is expected to reap the following benefits: • The socio-cultural, economic and political potential of the festival will be exposed to the whole world, encouraging investors and interested parties to participate. • Sustaining historical antecedents. • It offers unique features that qualify the regatta as an international regatta festival. • It will bring in tourists from within and outside the country as has been the case with the Arungungu Festival and Osun Osogbo Festival Metropolitan Park is a green lung in the centre of the city of Ilorin. in other states. • It will generate both local and foreign currencies for the state Asa Inland Beach Resort government. On a newly identified expanse of land near • It will enhance economic activities within the dam along Asa River in the state capital of the host community. Ilorin, the possibility of developing a beach • It will improve the standard of living. resort exists. The beautiful scenery and the • It has the potential to encourage the cool climate make the are suitable for recreation development of river transportation. and social activities. Development required for the Patigi Regatta Festival
Benefits of Asa Inland Beach Resort
The development required for this festival is as follows: • Renovation of existing pavilion • Upgrade of chalets and motel to international standard • Construction of infrastructural facilities: exhibition stand, press galleries and sheds • Acquisition of boats and canoes • Provision of package tour vehicles • Provision of an international communication system • Provision of electricity and potable water supply • Rehabilitation of access roads to the Festival Village TradeInvest Kwara 2010/11
• Increased revenue generation. • It will create jobs for the citizens of Kwara State. • Creation of a good atmosphere for relaxation. • New venue for tourists and potential investors to visit. Development required
• Construction of recreation park • Construction of administrative and security blocks and toilet facilities • Provision of infrastructure: electricity, water supply and communications • Police post
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Other sites and opportunities Island resort
An opportunity exists to transform Fangel Island and the bank of River Niger into an inland beach resort. The site is situated close to the historic city of Jebba. Potential facilities include a world-class hotel, a presidential resort, conference centre and a boat resort. Jebba
Jebba could be described as The Asa Dam is the location of an investment opportunity in the a museum city par excellence tourism sector. as it possesses a number of historical sites and relics. turned into stone through supernatural spells. These include the Mungo Park cenotaph and the wreckage of Park’s ship on which he explored Other sites the course of the River Niger. Other attractions Other important sites in Kwara State include are the Jebba bridges which remain a symbol of the Palace of Oloffa of Offa, the Dadda pottery one of the greatest engineering achievements in workshop, Ningurume fish pond, Adin & Black Nigeria, and the Ahoyaya Waterfall. Soap Industry, Watana Rock and the Kainji Lake Sheikh Alimi Mosque in Kuho National Park. The cultural scenery is further enSheikh Alimi was the progenitor of the Fulani riched by religious and traditional festivals such dynasty in what is today known as the Ilorin as the Awon Mass Wedding Festival, the Moremi Emirate. It is believed he would have made Festival and the Epa Festival, among others. Kuho his permanent base if any of the seven wells which he and his followers dug around the site has produced water. The site of the investment opportunities in tourism mosque has since become a great centre for Islamic activities where people gather for FOR MORE INFORMATION, CONTACT religious tourism. Fela Ibidapo, Special Assistant to the Executive Governor on Investment Email: felaibidapo@kwarastate.gov.ng TradeInvestNigeria: www.tradeinvestnigeria.com, info@tradeinvestafrica.com
Esie Museum
Esie Museum, situated in the town of Esie, was established in 1945 and features stone figures discovered in 1775. There are fascinating stories surrounding the figures, one which is the belief that the statuettes were actually human beings
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case study
Asa Dam Conference Centre and Resort A visionary plan aims to create an exciting new multi-purpose development at Kwara State’s Asa Dam. The Asa Dam Conference Centre and Resort is an exciting multi-purpose development that provides a unique mix of hotel and private accommodation with plentiful commercial and retail opportunities. Conference facilities, fitness centres, shopping malls and a golf course round off an innovative new approach to integrated property development. Central to the visionary plan is the elegant pedestrian bridge, vaulting over the expanse of Asa Dam Reservoir and linking the two sides of the project. The western side is mostly devoted to the public components (conference halls, shops and offices), while the eastern side contains the more private leisure and accommodation components. Great care has been taken to keep the environment as natural as possible, with grass pathways and waterways linking various parts of the leisure and accommodation zone. At the western edge of the bridge is the
centrepiece of the public part of the plan, the hotel and conference centre. With 37 suites, 406 guest rooms and a total space of 40 000 square metres, the centre will also contain a modern conference facility (7 000 square metres), a health spa and fitness centre, a swimming pool, a roof garden and four restaurants. The smaller family hotel will be located nearby, adjacent to a waterside boardwalk and a retail section near the water. Altogether, the shopping mall, including a food court and amusement park, will offer 34 000 square metres of lettable space. Adding to the product mix is 40 000 square metres of office space available in the commercial zone. A marina, a sports fields and an amusement park are also envisaged for this section. On the eastern edge of the bridge, a restaurant-topped tower greets the visitor to the private or leisure part of the resort. On this side of the water are found a resort hotel, a top-flight golf club and chalets for hire. But this is also where long-term residents can buy villas, with a top school on site to support their lifestyle choice. The school will be accredited with an appropriate accreditation institution in the United Kingdom. Potential residents and investors can choose from a variety of luxury accommodation units: • 30 two-bedroom resort hotel chalet units (248 square metres) • 72 three-bedroom villas (330 square metres) • 68 four-bedroom villas (350 square metres) The three- and four-bedroomed units have lap pools, a spa, a rooftop garden and servants’ quarters.
The conference, hotel, retail and commercial section (above and to the left) of the ambitious Asa Dam Conference Centre and Resort connect via a sweeping bridge with the grand tower leading to the golf course, resort hotel and private accommodation sector of the complex.
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