Kwara: agro investors' next destination

Date: 2012-03-23

Agriculture is the biggest  sector in  Kwara State. It accounts for about  70 per cent of the labour force. The climate is conducive to growing  fruits and vegetables, such as mangoes, pineapples, bananas and tomatoes. 

  The principal cash crops are cotton, cocoa, coffee, kola nuts, tobacco leaves, beniseed and palm produce. Others are cashew nuts, yams, beans, sugar cane, cotton, cocoa, coffee, tobacco and palm produce.

 One  of  its  major   agricultural projects is the Shonga agriculture initiative whereby a group of displaced farmers from Zimbabwe were invited to start commercial farming. Thirteen farmers relocated to the state and are involved in 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  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 notable shops in Africa, such as Shoprite. The   state is  set  to  boost agriculture through the expansion of cultivated land and self-sufficiency, to  lift  it  to the leadership position in agricultural  productivity in the sub region. This has given birth to the dream to establish Kwara  as the agricultural hub of  West Africa.  

To this end, Governor AbdulFatah Ahmed has spoken of an ambitious plan to build on the agricultural revolution in the state. To achieve this, the government intends  to build  a knowledge base for innovative scientific agricultural  research; develop  modern  centres  for agro processing and packaging; establish  depots and distribution centres to link  the state, the country and  West African farm products to the global market place. 

Ahmed  has  also  promised fundamental agricultural development that includes the training of farmers and restructuring of crop components to expand production. He  stressed on the importance of elevating the living conditions of farmers in the state. He has the support  of  major agricultural institutes such  as  Agricultural and Rural Management Training Institute (ARMTI), National Centre for Agricultural Mechanisation and the Niger River Basin Development Authority, all located in Ilorin.  

The Ministry of Agriculture and Natural Resources and Agricultural Development Project (ADP)  will  provide  infrastructural and storage facilities. All of these will help to improve and boost agricultural production and services in the state. The  government  is  working  to  create hundreds of jobs  over the next few year with  investment  that  will  come  from  local and foreign  investors. To  make  the state  an attractive investment destination, the  government  is  offering various lucrative investment opportunities in agriculture. The government offers a well-balanced package of fiscal incentives in priority areas as well as additional negotiated benefits to strategic investments. Investors can easily acquire land with the assistance of the state government. The government is looking for ways to ease the restrictions on foreign investment in the farm sector.   In  return, the  state has seen  many investments 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 presence of Dangote Flour Mills in lIorin is a further confirmation of the attractive investment environment. On ethanol or biofuel production, Kwara Casplex Limited is to produce ethanol from cassava. Casplex also has similar projecs, which are at an advanced stage of implementation in Oyo and Ekiti states. Using the oil from Jatropha seeds to produce biofuel also has potential in Kwara State.  Prospective investors can either cultivate their crops or buy from local farmers and focus solely on processing activities.  Opportunities for investment include direct cultivation of crops, agri-processing, transport, the provision of agricultural inputs and the marketing of produce. Numerous incentives are also offered to attract investment to the sector.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. Furthermore, the government has embarked on a land development scheme, which involves opening up new farming blocks for commercial development and expansion of the agriculture sector. The governor said there are great opportunities to explore in Kwara. He said there is potential for development and that the government is ready to support farmers to explore agric resources  for   mass production of food , feed and a range of industrial products. Kwara has a relatively large domestic market comprising a population size of about 12.2 million. The state's central location offers trading opportunities to surrounding northern states and the Middle Belt.

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