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Dangote, Others Plunked $6bn in Lekki Free Zone in 2016

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Free Trade Zone
  • Dangote, Others Plunked $6bn in Lekki Free Zone in 2016

The largest manufacturing conglomerate in West Africa, Dangote Group, and other companies have invested $6 billion in Lekki Free Trade Zone (LFTZ) in the last one year.

Likewise, the construction of Lekki Deep Sea Port, which was valued at $1.6billion, will take off next month as part of the plan to speed up industrial and manufacturing activities in the zone.

Lagos State Governor, Mr. Akinwunmi Ambode, disclosed this at the weekend when he inspected the zone alongside state Commissioner for Commerce, Industry and Cooperatives, Mr. Rotimi Ogunleye and his transportation counterpart, Mr. Olanrewaju Elegushi, among others.

Also, the Chairman, Lekki Worldwide Investment Limited, Mr. Biodun Dabiri; Managing Director, Asia-Africa International FZE, Mr. Sun Yuchao, and General Manager, Asia – Africa international FZE, Mr. Li Yong, were part of the team that inspected the zone.

Dangote Group is currently undertaking four strategic projects at the Lekki Free Trade Zone namely: a petroleum refinery, fertilizer processing plant, sub-sea gas pipeline project, as well as a petro-chemical project projected for completion on or before 2019.

During the inspection, Managing Director of Lekki Free Zone Development Company, Mr. Ding Yonghua, provided insight into the volume of investment the zone had attracted in the last 10 years.

As at 2016, Yonghua disclosed that the zone had already attracted 114 investors, noting that of all the investors that came to the zone in the last 10 years, 46 “are commercial investors. More investors have indicated interest in coming to set up businesses in the zone.

“The reason we have been spending more in the zone was that the zone is a swampy area and it cost $10 to sand-fill a meter within the zone. The most occupied region within the zone of the South-west quadrant where the port would be situated.”

After he was briefed about the volume of investment the zone had attracted as at 2016, the governor disclosed that more than over $6 billion has been invested in the LFTZ in the last one year, saying Dangote Group alone invested about $4 billion.

Ambode explained that over $6 billion “has been invested in the zone in 2016 alone. Dangote Group has the lion’s share of about $4 billion. We have a land space of over 16,000 hectares. A portion of this land has already been put to use.

“We are all aware of the investments Dangote Group and China Africa Lekki Investment Limited (CALIL) have injected into the zone. We are also aware of the partnership the duo signed with the Lagos State Government. This partnership made the company own 60 percent while Lagos State own 40 percent,” he explained.

Ambode added that putting the funds at the zone at a time when Nigeria was gradually easing its way out of recession would not only improve infrastructure and boost development, but would definitely help attract more investors to the zone.

Likewise, the governor promised that work “will commence on the Lekki Deep Sea Port in April,” explaining that the sea port “is indeed a critical infrastructure that will attract more investors into the zone and ensure return on investment.

“With the construction of Lekki Deep Sea Port, Lekki International Airport and others, it is obvious that a single road is no longer sufficient for the zone. We have to dualise the Lekki-Eleko road beyond the zone in order to withstand the influx of vehicle that will be making use of the road to access the zone and other areas.

“With this, we will be able to sustain the investments in the area. With the Lekki Deep Sea Port, Dangote Refinery and Lekki International Airport coming on board, Lagos East will witness massive economic turnaround within the next two years,” he said.

He also commended residents for the peaceful atmosphere witnessed in the zone in the last one year, which he said was crucial to the development recorded in recent time.

Ambode said about 800 hectares of land “will be handed over to the zone within the next six months for further development, adding that: “The overall interest is for the residents of Lagos. Aside that we will grow our GDP, this zone help reduce unemployment and capacity for the future.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Global Deal Activity Down by 4.5% in October 2020

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A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.

Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”

North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.

The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.

Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”

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Investment

Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business

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Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.

According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.

The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.

Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.

“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.

The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.

The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.

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Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB

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Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19  

The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.

This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.

Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.

In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.

“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.

“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”

In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.

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