The ARISE Integrated Industrial Platforms (ARISE IIP) has signed a partnership agreement with the Ogun State government for the establishment of the Remo Economic Industrial Cluster, which includes three special economic zones.
The agreement is in line with ARISE IIP’s ambition to unlock Africa’s industrial potential and support the Ogun State government in advancing the region’s industrialisation agenda.
The project is a public-private partnership with each of the parties holding a stake of 77.5 per cent and 12.5 per cent in the asset, while 10 per cent will be dedicated to potential local investors. Under the agreement, ARISE IIP will invest $400 million in the development of the zones.
The project to be located in the Sagamu area will comprise three zones and will create nearly 12,000 direct and 20,000 indirect jobs, as well as attract an estimated $1 billion in foreign direct investment in phase 1.
Construction will begin in January 2023 and the zones are expected to be fully operational by the fourth quarter of 2024.
Speaking at the signing ceremony for the partnership, the founder and Chief Executive Officer of ARISE IIP Gagan Gupta, said: “The ARISE IIP is partnering with the Ogun State government in the development of the cluster. By leveraging our experience in the design and management of industrial ecosystems and the sustainable transformation of natural resources. We aim to contribute to making the Ogun State a key player in the processing of raw materials, light industrials and pharmaceuticals.”
On his part, Ogun State Governor, Dapo Abiodun, said the investment in the Special Agro-Processing Zone (SAPZ) is a testament that the state is truly an investor destination of choice and will birth new investments in the agricultural value chain.
SAPZ has been allocated 6,300 hectares, while the first phase consists of 549 hectares. The cluster seeks to promote and attract multi-sectoral industrial and commercial investments, as well as develop local manufacturing of raw materials.
The zones will focus on agro-processing, light industrials, pharmaceuticals, and logistics.