How Ogun-Guangdong Open Market Zone can draw in FDI By Dirisu Yakubu

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Nigeria’s efforts at growing the economy through export production by embracing the Chinese Open market Zone design is yielding incredible outcome. If well harnessed, open market zones might end up being a method of bring in the much longed for Foreign Direct Financial investment, FDI into the nation and likewise a method of enhancing the profits base of the country.

BUHARI.

The core goal of open market zone worldwide typically is to promote financial development through its special platforms created to draw in foreign direct financiers, create job opportunity and construct human capability for the maximum advantage of the host nation.

Provided the vision of the President Muhammadu Buhari-led federal government to accentuate diversifying the efficient base of the Nigeria economy through the promo of non-oil exports, open market zones in Nigeria can play a substantial function in actualizing this dream.

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Stats gotten from the Nigeria Export Processing Zones Authority, NEPZA, reveal that there are over 32 signed up totally free zones in the nation out of which 14 are functional while 18 are still under building and construction. Another 8 are waiting for approval.

Amongst those totally functional, the Ogun-Guangdong Open Market Zone, OGFTZ, situated in the Igbesa, Ota City Government Location of Ogun State stands apart as one of the most effective in the land.

The OGFTZ, a joint endeavor in between a Chinese consortium including Guangdong Xinguang International Group, China-Africa Financial Investment Ltd and the Ogun state federal government, entered into remaining in2008

The success story of the zone has actually led to the conclusion of stage among its forecasts and the facility of over 30 zones which are totally functional, making varied items for export and the domestic market after satisfying appropriate custom-mades requirements. The activities of the zone has actually opened financial chances in Ogun state specifically settlements in its instant location of operations, producing job opportunity and enhancing industrialization as an outcome.

The OGFTZ is deemed to have actually established considerable facilities within its facilities such as independent power plant that makes it self-dependent in its own power requirements. With strategies in leading equipment to generate more financiers to the zone, its management just recently revealed strategies to double the existing 5 megawatts gas fired plant.

The OGFTZ was developed as an execution automobile of China-Africa Top Online Forum of 2006 which happened in Beijing. It was created as part of the 8 foreign cooperation zones of China in Nigeria focused on promoting trade cooperation and reinforcing the bilateral relations in between Nigeria and China and to help in the country’s industrialization drive by utilizing the nation’s big human and natural deposits.

Surprisingly, OGFTZ has in a brief area of time satisfied all its forecasts and has actually ended up being a recommendation on how a FTZ need to be handled in supplying a favorable environment for markets to grow in spite of the country’s advancement obstacles.

According to Daniel Che, Deputy basic supervisor of China-Africa Financial investment, in a current chat with newsmen was positive about the future possibility of the zone if existing policy structures are surpassed and if federal government at both the state and federal levels pay more attention to a few of the obstacles being dealt with by the zones.

” If just the federal government at both state and federal levels can pay a bit more attention to policy concerns and thoroughly listen and carry out a few of our ideas, I can ensure you that the open market zone design can catapult the commercial transformation of this nation. It occurred in China and it can be duplicated here,” he specified.

He similarly kept in mind that an establishing nation like Nigeria requires tasks chances which just making plants can supply, stating, “OGFTZ alone offers work to over 6,000 Nigerians. I am discussing direct work here. You can start to picture the indirect work we have actually had the ability to create, including our long list of regional providers of in your area sourced basic materials that feeds the markets in the zone.

” There have to do with 30 business that have actually established in the zone and much more are in the offing and we continue to get interest from our house nation, China. When these business established here, they will add to the industrialization of the nation. You can state that industrialization is one method the zone is assisting the nation to grow and make quick actions towards advancement. We are devoted to the industrialization of Nigeria. Currently, the worth of financial investment in OGFTZ is over $2 billion and I can ensure Nigerians that this financial investment will double in no far-off time. We have our strategies to totally utilize the 2000 hectares website stated as a FTZ by the federal government.”.

Che likewise kept in mind that OGFTZ is adding to the development of Nigeria through profits generation, mentioning that when items produce within the Zone are slated for exports, proper responsibilities are imposed by the Nigerian Customizeds.

He likewise admired the Zone in the location of abilities acquisition, stating, “Transfer of technical and technological knowledge is likewise a significant advantage accumulating to the nation. With the variety of regional employees we have in the zone, we are currently training a swimming pool of employees who will tomorrow train others on technical understanding that would make Nigeria self-dependent in abilities needed in a modern-day economy and minimize the variety of foreign professionals entering into the nation to use up work.”.

Saturday Lead collected that some worldwide brand names are currently running within the zone, especially Goodwill Ceramic, Hewang Product Packaging, Pannda Market, China Glass and a host of others.

Goodwill Ceramic for example, developed its production centers in the zone in 2011 and has actually contributed considerably in making Nigeria self-dependent in its requirement for ceramic products specifically flooring and wall tiles of all kinds. The business, according to findings, has actually invested over a USD 100 million in the Zone.

In the views of Mr. Chi “Goodwill Ceramics is unarguably the most significant ceramic items maker in West Africa”.

Another popular business running in the Zone is Hewang Product packaging and Printing business. The business opened in the zone in 2010 with a financial investment of over USD 50 million. The business specialises in the production of product packaging products specifically container and presently has a day-to-day production of 600,000 pieces of container and other product packaging products and.

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Pannda Market is another business which was established in 2015 and concentrates on the production and marketing of all sorts of iron and steel items. Presently, the primary production consist of steel strip coil, galvanized pipelines and various sizes of customized made C-type steel which is satisfying regional needs and the export market.

There is likewise China Glass Nigeria which is likewise a multi-million dollar glass business. The moms and dad business is among the most significant worldwide. The business has actually up until now invested over USD 100 million in the zone and is set to satisfy the nation’s requirement for all kinds of flat glass for the structure market and for other commercial and domestic usage.

According to Daniel Chi, “What Nigerians need to take cognizance of is the reality that these markets are sourcing the majority of their basic materials from Nigeria and like I stated previously this has actually galvanized the regional economy due to the fact that we now have a great deal of regional providers who are satisfying the raw products requirements of these markets.”.

Speaking on why Nigeria ought to pay more attention to the Open market Zone design, Che observed that beginning with the 1980 s and with the facility of unique financial zones (SEZ) in the south eastern seaside area of China, more than a hundred zones of different kinds have actually considering that been developed throughout China, which he kept in mind are mainly accountable for the exceptional development of China for many years.

” As an outcome of this effective Chinese design, there has actually been strong interest by lots of nations to imitate the design by embracing the Open market Zone as a financial policy.

” Open market Zone concentrates on trade liberalization and export-led development, bring in foreign financial investments and improving the competitiveness of the production sector to produce work, technological transfer and human capability advancement to name a few, it is a win-win for both the Zone and the host nation”.

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