Economy

Development partners break ground on new special economic zone in Sierra Leone

Africa Finance Corporation and its investee company ARISE IIP broke ground on a Special Economic Zone (SEZ) with the government of Sierra Leone to boost local manufacturing across core sectors. Picture: State House of Sierra Leone
Africa Finance Corporation and its investee company ARISE IIP broke ground on a Special Economic Zone (SEZ) with the government of Sierra Leone to maximise value capture and import substitution across core sectors. Picture: State House of Sierra Leone

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Africa Finance Corporation and its investee company ARISE Integrated Industrial Platforms (ARISE IIP) have officially launched the construction of a Special Economic Zone (SEZ) in Sierra Leone as part efforts to boost local manufacturing and exports in the west African country.

The launch comes after parliamentary ratification of an agreement with the Sierra Leone government. Under the agreement, ARISE IIP, a developer and operator of industrial ecosystems across Africa, will develop a port and rail system in the Koya Industrial Zone (SIZ-Koya). ARISE IIP will also build the energy systems and infrastructure to enable industrial activity.

“This collaboration between our partners at Arise IIP and the Sierra Leonian government will make a massive contribution to economic growth and development by maximizing value capture and value retention across several core sectors,” AFC’s President and CEO, Samaila Zubairu, said in a statement. “The SIZ-Koya will be a bedrock of opportunities for local businesses, and an engine that draws in foreign investment, and promotes technology transfer and skills development.”

Sierra Leone, one of the world’s top producers of diamond, is seeking to diversify and grow an economy that relies heavily on mining – the sector accounts for 80% of its export revenue. According the Sierra Leone Economic Diversification Project, the country plans to increase investment and growth of small and medium enterprises in non-mining productive sectors.

Industrializing with import substitution

With the Koya Industrial Zone, the country aims to attract investors through streamlined permits and approvals required to do businesses in Sierra Leone. The businesses, in turn, are expected to boost economic growth, create skilled jobs and raise export revenue, the AFC said.

The Special Economic Zone, focusing mainly on import substitution industries, is designed to host companies specializing in agro-industry, timber processing, pharmaceuticals, consumer goods manufacturing, electric vehicle manufacturing, and cement and tile manufacturing.

ARISE IIP says it will invest $120m in the development of the SIZ – Koya (Sierra Leone Industrial Zone) as part of a public-private partnership between ARISE IIP and the Republic of Sierra Leone.

“Our partnership with the Republic of Sierra Leone is a testament to our commitment to making a positive impact in Africa,” founder and CEO of ARISE IIP, Gagan Gupta, said in a company statement. “Through the SIZ – Koya project, we aim to create world-class industrial infrastructure that will attract local and international investors to the region. We are confident that this integrated infrastructure will not only lead to job creation, but also contribute more broadly to the industrialization of Sierra Leone in a sustainable and responsible way.”

Launched in 2010, ARISE IIP has built a track record of creating special economic zones across Africa. It notably created the Nkok Special Economic Zone in Gabon – Africa’s first certified carbon neutral industrial zone– that turned the west African country into the world’s largest exporter of wood veneers. It also has presence in Benin with the Glo-Djigbé Industrial Zone (GDIZ) and in Togo with the Adétikopé Industrial Platform (PIA).

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Congo’s national oil company officially launches ‘Performance 2025’

Congo’s national oil company SNPC organized a gala dinner to celebrate its 25th anniversary and launch its ambitious “Performance 2025” program. The event took place at the Grand Hotel of Kintélé in early May and brought together more than 1,000 people, including SNPC agents, partners, friends and members of the government and Congolese institutions. The highlight of the evening was the launch of the “Performance 2025” program of the SNPC. Presented by the Director General of the company, Mr. Maixent Raoul Ominga, this project is based on four pillars: increasing income, controlling and optimizing costs, supporting and contributing to the government agenda, and ensuring better governance of the company’s activities. More generally, Performance 2025 aims at positioning the SNPC as a undisputed leader of the Congolese and African oil industry in the years to come. The Director General clarified that the project seeks to improve the competitiveness of SNPC, emphasizing productivity, quality and operational efficiency. A highlight of the evening was the delivery of the SNPC book to the Director General by a tribe who presented a choreography and traditional songs. The SNPC book presents the history of hydrocarbons in the Republic of Congo since 1957 and that of the company 25 years ago. It was presented by the Director General to Mr. Bruno Jean Richard Itoua, Minister of Hydrocarbons. “For the SNPC, this historic moment is an opportunity to take a retrospective look on the road traveled and to have a prospective look at its future,” Maixent Raoul Ominga said during his speech. “It is by associating all the intelligences, energies, know-how and by getting out of our comfort zones that our company will certainly be at the rendez-vous of its ambitions, through its ‘Performance 2025’ program.”

New Joint Venture to support Nigeria’s energy transition plan

A new Joint Venture agreement is aiming to invest in a range of carbon avoidance and removals projects in Nigeria as part of efforts to support the energy transition plan in Africa’s most populous country. The Nigeria Sovereign Investment Authority and Vitol, a global energy and commodities company, completed the Carbon Vista JV . Both parties made an initial commitment of $50 million to the new venture. The JV’s first investment will go into a household energy efficiency programme. It includes an initial deployment of up to 200,000 devices each for clean cooking. “Nigeria’s Energy Transition Plan (ETP) requires a radical rethink of our energy consumption mix beginning from the micro-level,” says Aminu Umar-Sadiq, Managing Director, and Chief Executive Officer of the Nigeria Sovereign Investment Authority (NSIA). The NSIA manages the Nigeria sovereign wealth fund where surplus income from Nigeria’s excess oil reserves is deposited. During last year’s COP27, Nigeria joined several African nations to announce its commitment to scaling voluntary carbon markets as part of the Africa Carbon Markets Initiative (ACMI). African leaders, CEOs, and carbon credit experts are involved in the initiative.  ACMI seeks to produce 300 million carbon credits annually by 2030, and 1.5 billion credits annually by 2050. The latest JV brings Nigeria closer to meeting these ambitious targets. “Without incremental steps to address the fundamental issues, the ETP’s goals may remain unrealised and further exacerbate our climate risks,” says Aminu Umar-Sadiq. “Carbon Vista adopts a pragmatic approach to these challenges. We are pleased to be leading this novel path for delivering Nigeria’s net-zero targets.” Partnerships for clean energy The JV will commence with projects in Nigeria, partnering with local firms with proven track records of successfully delivering high-quality projects. Investments will focus on various sectors including infrastructure, agriculture, and energy.  Energy remains a critical issue for Africa. Household air pollution from traditional stoves and polluting fuels is reported to cause over four million premature deaths annually in the region.  “This joint venture should be a catalyst in the creation of the domestic emissions trading scheme,” says Michael Curran, Head of Environmental Products at Vitol. The JV, Michael Curran says, will create a pipeline of high-quality credits into the global voluntary carbon markets. “When combined with a comprehensive corporate energy transition strategy, offsetting will play a key role in meeting the Paris Climate Agreement objectives and contribute toward the UN Sustainable Development Goals.” According to the 2022 Africa Energy Outlook, Sub-Saharan Africa is struggling to increase access to clean-cooking-technology – a trend exacerbated by recent spikes in the price of cooking gas – leaving almost 1 billion people without access to clean cooking.  Experts say global efforts to increase clean cooking access will need to target the continent with greater intensity. That way, they say, Africa can achieve the UN Sustainable Development Goals on access to affordable, reliable and modern energy for all. Nigeria’s Vice President Yemi Osinbajo says the Energy Transition Process remains a tough process.  “It’s especially tough for those of us who are from gas-rich countries and fossil fuel-rich countries,” notes Vice President Yemi Osinbajo. “For countries like ours rich in fossil fuel, we also find ourselves in a situation where we are energy poor. I believe Africa can become the first truly green civilisation to use renewable fuel for purposes of a transformative economic journey.”