Akwa Ibom State Government Incentives To Investors July 25, 2012Posted by Ibompulpit in Akwa Ibom Diaspora, Economy, Organization.
Tags: AIDN, akwa Ibom, Godswill Akpabio
WHY INVEST IN AFRICA
It has been established fact that in recent years, compared to other regions of the world, average returns on investment is highest in Africa. According to a Forbes Magazine article, “The Case For Investing in Africa” written by Paul Collier and published on June 15, 2012 (http://www.forbes.com/2010/06/15/africa-investment-growth-leadership-governance-mckinsey.html):
“Indeed, three distinct sources of data indicate that returns on investment are higher there than in other regions. One was a comprehensive study of the publicly traded companies operating in Africa for the period 2002-07, mostly in the manufacturing and services sectors. It found that these companies’ average return on capital was around two-thirds higher than that of comparable companies in China, India, Indonesia and Vietnam. Another source, on the foreign direct investment of U.S. companies, showed that they were getting a higher return on their African investments than on those in other regions. Finally, analysis of a series of surveys of several thousand manufacturing firms around the developing world found that, at the margin, capital investment had a higher return in Africa.”
AKWA IBOM GOVERNMENT INCENTIVES
- Government’s policy thrust is to encourage private sector led industrialization towards stimulating the expansion of domestic production of goods and services, create employment and promote a technology driven economy.
- Land: The government guarantees prompt allocation of plots for industrial developments, commercial, agricultural and residential estates. Certificates of Occupancy for such plots will be approved within a few weeks of application. Land is rent free during construction of factory premises.
- Export Processing Zone: The government promises a 3 year tax holiday and repatriation of foreign capital investment with accompanying capital appreciation.
- Unrestricted remittances of profits and dividends earned by foreign investors in the Export Processing Zone (EPZ).
- No import or export licenses are not required for investments in the EPZ.
- Investors may have up to 100% ownership of enterprise within the EPZ.
- No quotas on products to European Community Countries (ECC) and USA.
- EPZ goods are entitled to preferential tariff in the European Economic Community (EEC).
- The State government has invested heavily in social infrastructure to provide an enabling environment for industrialization. These include substantial investments in road construction, hospitals, schools, hotels, power generation and enhanced telecommunication capabilities.
- Government can provide business/investment counseling to prospective investors