The Ekiti Knowledge Zone (EKZ) project in Nigeria has received a significant boost with the approval of an $80 million loan from the African Development Bank Group (AfDB). This initiative, supported by the federal government and led by the Ekiti state government, aims to foster digital innovation and entrepreneurship and establish Ekiti as a leading hub for the knowledge economy in Nigeria.
“The Bank’s financing will leverage other development partners’ programs and bolster the development of world-class infrastructure, including a 20-hectare green technology park and services infrastructure like roads, electricity, water supply, and wastewater treatment facilities,” according to the Ekiti state government. The total project cost is estimated at $94.8 million, with the state government providing $14.8 million in counterpart funding.
The EKZ project is designed to stimulate digital innovation and entrepreneurship, resulting in the generation of 26,000 jobs and an annual contribution of approximately $14 million in net economic benefits. Achieving these targets involves attracting investors and businesses, including tech startups, business process outsourcing firms, fabrication and production companies, research institutes, and corporate back-office operations.
Additionally, investors will be incentivised to establish a Special Purpose Vehicle, enabling multiple investors to collectively finance initiatives within the Zone.
The EKZ has received free zone status from the Federal Government, enabling it to provide incentives like free repatriation of capital, profits, and dividends for foreign investors, land without rent during construction, tax holidays, waivers on import/export duties, and expatriate quotas.
Moreover, the project will also enable the creation of the Ekiti State Innovation Fund, aimed at offering pre-seed and early growth stage funding to support entrepreneurship, innovation, and investment. It is anticipated that the Fund will attract investments for over 50 seed and early-growth startups.
The $80 million loan from the AfDB originated from a proposal presented to the bank’s president, Akinwumi Adesina, by the former governor of the state, Kayode Fayemi, four years ago.
“It is exciting to see that our efforts, which began a few years ago during my tenure, to establish Ekiti as the knowledge economy of Nigeria and the preferred destination for innovation, technology, artificial intelligence, science, and digital initiatives, are starting to bear fruit,” Fayemi said in a congratulatory message to the state government.
The EKZ project is a significant step forward in Nigeria’s efforts to diversify its economy and become a leader in the digital age. The project is expected to have a transformative impact on the Ekiti state economy and create new opportunities for its residents.
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