The African Development Bank Group has greenlighted an $80 million loan destined for the Ekiti Knowledge Zone project in Nigeria, which is aimed at fostering digital innovation and entrepreneurship.
The initiative anticipates generating 26,000 jobs and contributing approximately $14 million annually in net economic benefits.
Officially endorsed by the federal government and spearheaded by the state, the Ekiti Knowledge Zone is a Special Economic Zone equipped with fiscal incentives to attract private sector investments across digital technology and knowledge economy value chains.
The project envisages the involvement of technology firms, investors, and private sector anchor investors in a collaborative special-purpose vehicle structure, pooling resources to manage Zone operations efficiently.
It seeks to magnetize various businesses, from tech startups to research institutes, fostering an environment conducive to advancing digital technology.
Integral to this endeavour is the Zone’s incubator program, which is aimed at nurturing budding startups by offering financial support and ICT skills training for the youth in Ekiti and neighbouring states.
Designated as a “free zone” under the Nigeria Export Processing Zones Authority Act, the Ekiti Knowledge Zone offers an array of incentives, such as capital repatriation, tax holidays, and import/export duty waivers, strategically tailored to facilitate private investments.
The project cost is estimated at $94.8 million, with the Ekiti State government pledging $14.8 million as counterpart funding. The African Development Bank’s funding is anticipated to leverage additional support from other development partners invested in the state.
Lamin Barrow, Director General of the Bank Group’s Nigeria Country Department, emphasized that the project’s design aligned with the needs of technology firms, assimilating insights from similar projects globally and drawing from successful practices.
He said the financial support will bolster infrastructure development, including a green technology park and essential services like roads, electricity, and water supply.
Additionally, it will enhance ICT training and cultivate entrepreneurial skills among the youth.
The project also advocates for enabling policies and the establishment of the Ekiti State Innovation Fund, aimed at nurturing entrepreneurship.
