African Development Bank Commits $80 Million to Ekiti Knowledge Zone Project
The Ekiti Knowledge Zone project in Nigeria secured a significant boost with an $80 million loan approval from the African Development Bank Group (AfDB). Aimed at promoting digital innovation and entrepreneurship, this initiative, backed by the federal government and spearheaded by the Ekiti state government, received resounding support.
According to the Ekiti state government, the Bank’s funding will leverage partnerships with other development entities to build world-class infrastructure. The project’s scope includes a 20-hectare green technology park and essential service infrastructure such as roads, electricity, water supply, and wastewater treatment facilities. The total project outlay amounts to $94.8 million, with the state government providing $14.8 million as counterpart funding.
Lamin Barrow, AfDB Group Director General of the Nigeria country department, emphasized that the project design aligns with technology firms’ needs and investors’ requirements, drawing insights from successful Bank-backed initiatives in other African countries.
With the Zone aiming to generate 26,000 jobs and contribute approximately $14 million annually to the economy, the focus remains on attracting diverse businesses, including tech startups, research institutes, and corporate entities. The project will encourage investors to establish a Special Purpose Vehicle to collectively finance initiatives within the Zone.
Moreover, the project’s free zone status, accorded by the Federal Government, offers incentives such as tax waivers, rent-free land during construction, and repatriation privileges for foreign investors. Additionally, the establishment of the Ekiti State Innovation Fund will support entrepreneurship and investment, projecting to benefit over 50 seed and early-growth startups.
