The Board of Directors of the African Development Bank Group has approved an $80 million loan to finance the Ekiti Knowledge Zone project in Nigeria. The Zone seeks to promote digital innovation and entrepreneurship, generate 26,000 jobs, and contribute some $14 million annually in net economic benefits.
The Ekiti Knowledge Zone is a Federal Government-backed and state-led Special Economic Zone with fiscal incentives to attract private sector investment in the digital technology and knowledge economy value chains.
The project will attract technology firms and investors, including anchor investors from the private sector, to form part of a Special Purpose Vehicle that allows multiple investors to pool financing. This structure will enable investors to manage the operations of the Zone.
The project also aims to attract businesses, including tech start-ups, business process outsourcing firms, fabrication and production companies, research institutes and corporate back-office operations, to locate in the Zone.
The Ekiti Knowledge Zone’s incubator programme will support promising start-ups with pre-seed and seed funding. It will also offer skills-enhancement training in information and communication technology targeting the youth in Ekiti and neighbouring states.
The Ekiti Knowledge Zone was conferred “a free zone” status by the Federal Government under the Nigeria Export Processing Zones Authority Act in April 2023. It will thus offer various incentives for private investors, including: free repatriation of capital, profits and dividends by foreign investors, rent-free land during the construction phase, tax holidays, waivers on import and export duties, and expatriate quotas for companies operating in the Zone.