IN COLLABORATION WITH
WHY AFRICA
UNDERLYING POTENTIALS IN AFRICA •
AREA OF UNCULTIVATED ARABLE LAND IN SUB-SAHARAN AFRICA TODAY:
200 million hectares •
THIS REPRESENTS
50% OF UNCULTIVATED ARABLE LAND TODAY
Source: World Bank, DB Research
AFRICA ON THE MOVE… AFRICA Today
AFRICA Tomorrow
• $1.6 Trillion
•$2.6 Trillion
Africa’s collective GDP
Africa’s collective GDP in 2020
•Over $900 Billion
•$1.4 Trillion
Africa’s combined consumer spending.
•Africa’s combined consumer spending in 2020.
1 billion
•Currently about people live in Africa
•Today, around 1/3rd of SSA’s population lives in urban areas
•1.2 billion people will live in Africa by 2025
•By 2035, about
1/2 of its
population will live in urban areas Source: McKinesy and Company
Land -Water- Agriculture - Urbanization
Source: FAO, World Bank
AFRICA AGRICULTURAL IMPORTS
In 2011, SSA imported $43bn worth of agricultural commodities
. During the 2007-08 food crisis when rice and wheat prices reached record highs, several African countries experienced riots.
Wheat, Rice, Oil Palm & Sugar ACCOUNT for
40% of total IMPORTS in 2011
Source: World Bank
AFRICA: Imports Vs Exports
Source: World Bank
NIGERIA TOTAL 36 State
LARGEST ECONOMY IN AFRICA
Population: 170Million +
Nigeria Ecology, Soil & Climate •
Nigeria General Rainfall precipitation range: 500mm (North) – 4000mm (South) Temperature Variance: 17°c - 38°c+
•
Ecological Zones, Soil Types, Rainfall & Potential of Areas – They are 4 Soil types classified by 3 associated (climatic) zones – ACROSS 3 Main Regional Belts 1.
Northern Zone: – Belt Divide: Arid / Semi-Arid & Northern Guinea / Southern Guinea Savannah – Soil: Sandy soils – Temperature: 20°c - 38°c – Rainfall: 500mm – 1500mm – Potentials: Feedstock, Tomato, horticulture, rice etc Source: FAO
Nigeria Ecology… 2.
3.
Middle Belt Zone: Interior zone of laterite soils / Derived Savannah Climate – Soil: laterite soil – Temperature: 21°c - 35°c
– Rainfall: 1000mm – 2500mm – Potentials: Cassava, Rice, Horticulture, Citrus etc.. Southern Belt Zone – – – –
•
Belt Divide: Arid / Semi-Arid & Northern Guinea / Southern Guinea Savannah Temperature: 20°c - 38°c Rainfall: 1500mm – 4000mm+ Potentials: Feedstock, horticulture, rice, millet,
Special Zones – Alluvial soils Zones • Soil: Alluvial • AREA: Water lying areas, Altitude of 1,200m+ • Rainfall: 2000mm – 3000mm+ • Temperature: 21°c - 38°c • Potential: Oil Palm, Banana’s, Plantains, Cocoa, Rubber, Pineapples etc –
Mid-Altitude Region • AREA: JOS / TARABA / ADAMAWA STATE • Climate: Tropical Savannah • Rainfall: 1400mm – 1800mm+ • Temperature: 11°c - 25°c • Potential: Tea tress, Potatoes, Lettuce & Vegetables etc
SOIL TYPES ACROSS THE BELTS
RAINFALL PER ANNUM
SOURCE: FAO
KANO CASE STUDY •
The North savannah lands represents 80 % of the vegetation zones.
•
Kano is one of main Agricultural hubs
•
Infrastructure – New 33Kv Power lines – Challawa Gorge Dam: 930millions of cubic metres, covering 10,117 hectares – DAWANAU Market: largest grain market in West Africa, 64million cubic meters of grain storage capacity This area is great for – Tomato - Livestock - Horticulture - Groundnut – Rice - Maize - Sorghum - Millet cowpeas Neighboring Potentials – Cotton - Gum Arabic
•
•
Source: FAO
INFRASTRUCTURE AND INITIATIVES • 17 DAMS ACROSS 12 STATES • CO-OPS – FADAMA Farmers association
• SCHEMES & INITIAVES – WORLD BANK Sponsored FADAMA Farmers Association
• Nigeria imports Avg $150Billion foods Source: FAO
MAP of NIGERIA’S AGRO-ECOLOGICAL ZONES
Source: FAO
FINANCIAL OUTLOOK
NIGERIA CURRENTLY
NIGERIA BY YEAR 2035
$510 billion 24% of GDP is from GDP of
agriculture
$1.6
trillion Agriculture is
40% of
GDP
40 million
160 million
Nigerians in consumingclass households
130 million
almost live below the Empowerment Line
GDP of more than
Nigerians in consumingclass households
120 million Nigerians to move above the Empowerment Line
Source: World Bank
NIGERIA ‘NUMBER 1’ Nigeria is ‘’Number 1’’ Destination for FDI in Africa Key Takeaways Nigerian FDI vs. Other Sub Saharan African Countries Measure: % of 2011 FDI
Nigerian FDI vs. Other West African Countries Measure: Billion of USD
Source: Mckenzie
•
Nigeria accounts for 50%+ of all FDI in West Africa
Globally Nigeria ranked 23rd in Foreign Direct Investment inflow.
In 2011, Nigeria BECAME leading FDI destination in Africa: as a result of improved investment policies e.g., Privatization of the power sector, ATA,SCPZ
ECONOMIC AND POLITICAL STABILITY IN NIGERIA CHALLENGES NOT A PROBLEM
Despite challenges posed by localized security challenges e.g. Boko Haram, Corruption, etc, Nigeria remains Africa’s largest democracy, with a stable 3 tier federal government system Source: Mckenzie
OPPORTUNITIES & CHALLENGES
AGRO AND AGRO PROCESSING IN NIGERA
CURRENT CHALLENGES
POTENTIAL OPPORTUNITIES
INCENTIVES
Unorganized farmers
170m+ population (2.8%) Annual growth rate Over 53% of working class Nigerians are farmers living in the Rural Areas.
FADAMA Initiatives by World Bank helping to organize farmers into selfformed cooperatives
Low Agricultural Yield
Availability of Fertile arable land (84 million ha ) and abundant water resources over 200billion cubic metres of water
Partnership with Syngenta, Dupont and Other Agro Input Companies by Min. of Agric
Poor Road Network and Unavailable Power Supply
Post Harvest Losses and Lack of Storage Facilities
Creation of Staple Crop Processing Zones to bridge infrastructural deficit in Rural Areas SCPZ facilities, Increased Value addition and Processing Capacities
Inadequate funding and high interest rates
CACs NIRSAL Bank of Agric
Land Policy
99years Leasehold agreement
Single Digit Funding
POLICIES
A T A
INITIATIVES DRIVING POLICY
PRIVATE FIRMS LEADING THE WAY NIGERIANAGRIBUSINESS GROUP STAPLE CROP PROCESSING ZONE
INCENTIVES
• Single digit loan for 10yrs+ • 3 New privately owned fertilizer plants of (5mill Tonne /annum) • Available quota for expatriates • 100% Dividend Repatriation • 99 years leasehold • INVESTMENT FRIENDLY: 0% Tax • 100% Business ownership
Source: Ministry of Agriculture
ECOWAS REGION: POTENTIAL NIGERIAN MARKET
KEY CROPS RICE COTTON MAIZE COCOA OIL PALM HORTICULTURE
Population 340MILL+ Combined GDP: $1,322BILL+
ECOWAS / WEST AFRICA
Source: ECOWAS Source: Ecowas
AGRO PROCESSING… • Processed foods, beverages, fruits & vegetables represent over 80% value of Global food markets. • Activities can provide farmers or SME ability to expand and have access to higher-value markets
• Nigeria expects USD 1.5 for agriculture in 2014.
bn of foreign investment
KEY ADVANTAGE Available land fast-growing consumer markets Source: World Bank
NIGERIA PRINCIPAL CROP DATA WHEAT DATA 4,500,000.00 4,000,000.00 3,500,000.00
Tonnes/annum
3,000,000.00
Production
2,500,000.00
Consumption
2,000,000.00
Imports
1,500,000.00 1,000,000.00 500,000.00 2011/12
RICE DATA
2012/13
2013/14
6,000.00 5,000.00
Tonnes/annum
4,000.00
Production
3,000.00
Consumption Imports
2,000.00 1,000.00 2011/12
2012/13
Source: USDA
2013/14
NIGERIA PRINCIPAL CROP DATA OIL PALM 1,600,000.00 1,400,000.00 1,200,000.00
Tonnes/annum
1,000,000.00
Production Consumption
800,000.00
Imports
600,000.00 400,000.00 200,000.00 2011/12
SUGAR
2012/13
2013/14
1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00
Tonnes/annum
Production Consumption
800,000.00
Imports
600,000.00 400,000.00 200,000.00 2011/12
2012/13
Source: USDA
2013/14
A-T-A Agricultural Transformation Agenda •A Federal Government initiative •Designed and implemented by the Ministry of Agriculture and Rural Development •Allows for private-led Agri-business companies to maximize the agricultural value chains •The Government will create an enabling environment for its successful implementation Source: Ministry of Agriculture
A-T-A GOALS
INCENTIVES -
Substituting import Implementation of the SCPZ plan Attract Major Investors in to Agriculture
Introduction of tariffs/higher duties on Agricultural imports - CBN Intervention scheme/BOI: Access to long-term single digit loans - Steady and reliable power supply - Ready available talent - Dry port: easier and faster to clear goods
Source: Ministry of Agriculture
-
-
Value Addition minimize the impact of local currency depreciation Add $4Bill+ to economy/ CREATE 100,000 - 250,000 Cost effectiveness of food processing Full Investment commitments made by: Flour Mills of Nigeria, Dangote Group, Syngenta, Indorama, AGCO, Belstar Capital, and other companies
Staple Crop Processing Zones: Locations and Value Chains Master Plans: completed 7 Model SCPZ sites/corridors across five value chains, with plans to expand
Sokoto Katsina Kebbi
Jigawa
Yobe
Zamfara
Borno
Kano
Bauchi
Kaduna
SCPZ Value Chains Gombe
Niger
Adamawa
Horticulture
Cassava
Sorghum
Fisheries
Livestock (To be added)
Plateau
FCT
Kwara
Rice
Nassarawa Oyo Osun Ogun
Taraba
Ekiti Kogi
Ondo
Benue
Enugu Edo
Lagos
Anambra Delta Bayelsa
Cross Ebonyi River
Imo Abia Rivers
Akwa Ibom
Model SCPZ State Locations Priority SCPZ State Locations with Completed Master Plans
Potential Additional SCPZ State Locations for Livestock
Source: Ministry of Agriculture
DANGOTE PROJECTS
DANSA AGRO ALLIED PLANTION PINEAPPLE PROJECT Planted about 27,000 tonnes of Smooth Cayenne pineapple on 300 hectares of land.
About 1 million units of MD2 pineapple suckers have been imported and planted in the nursery area as a trial, prior to the commencement of commercial planting in mid 2014.
Installed Capacity of the Pineapple Processing plant is 80Tonnes per day. Expansion plan for the Factory will take its capacity to 400Tonnes daily.
DANGOTE TOMATO PROJECT (DANGOTE FARMS) Single largest tomato paste factory in Africa Projects • •
1,200 tonnes (cpd) tomato processing plant: CONSTRUCTION Ultra-modern 120 million seedling capacity greenhouse
UNDER
Targets •
Produce fresh and processed tomato products (i.e. paste, purée, etc.)
Location: Kano State, Kadawa Area Access • • •
26,000 hectares+ of irrigated land 33kV Power Line Kano – Kaduna High Way
Investment & Payback
This investment will substitute import years.
within it’s the First 3
TRANSFORMING AGRICULTURAL VALUE CHAIN IN TOMATO
CURRENT LOCAL PRACTISE
NEWLY INTRODUCED IMPROVED METHODS
TOMATO PROCESSING PLANT
•
DANSA AGRO ALLIED PLANTATION: OIL PALM PROJECT Location: Cross River State, Nigeria.
•
Area:
•
Stage of Development: Planting and continuous land preparation
•
Milestones: –
•
50,000 hectares
established 1000ha nursery which was given out to out-growers at the secondary stage of the Nursery(Ready to plant Seedlings)
Additional 100,000 hectares of Oil Palm farm-land establishment is ongoing
VALUE ADDITION IN OIL PALM
• Projected Production: » Peak Yield 1.5 million MT of Fresh Fruit Bunches » Palm Oil Refinery 400 MT/ day » Out-grower Scheme
INTEGRATED SUGAR REFINERY Location Across 4 States Area : 250,000HA
Capacity Sugar : 2,000,000 Tons Ethanol : 200 million Litres Cogeneration : 650 MW Animal feed : 500,000 Ton
Estimated cost Factory $1Billion Plantation $800 million
Employment Potential Plantation Permanent 50,000 Seasonal 150,000 • Factory Permanent 10,000 Seasonal 10,000 General Administration 5,000 Out-growers Employees 100,000
DANGOTE RICE Location: Area : 150,000 ha
Capacity Paddy Rice: 1,500,000 Tons Milled Rice : 1,000,000 Tons Rice bran
Co-generation to meet factory energy demands
Project cost: Factory $1Billion Plantation $850Million Admin $50Million
Employment Potential Out-growers: 60,000 (30% of farmers) Plantation Permanent 6,000 Seasonal 15,000
Factory Permanent 5,000 Seasonal 5,000 General Administration 1,000
AFRICA – NIGERIA: LAND OF ENDLESS POSSIBILITIES
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