Investor Presentaiton
Plateau lacks
significant
processing
capabilities, but
also faces several
challenges with
setting up
processing plants
Source: Stakeholder interviews
k
$
Infrastructural challenges & high costs
•
•
High set-up costs, inconsistent water & power supply deter the set-up of processing
plants across Nigeria (e.g. Erisco and Dangote Industries postponed production of
tomato paste due to high costs)
Lack of quality roads to connect processed goods to major markets will further
reduce margins
Unpredictable and non standardized supply
•
•
No large-scale farming for industrial inputs - sector is made up of smallholder farmers
that lack the production know-how and tools to supply in a standardized scale
High production variability due to inconsistent water supply, lack of storage etc.
Complexity of doing business
Historical lack of peace & stability has led to the exit of some food processors from
Plateau State: Vegro (potato processing) and Tomapep (tomato paste processing)
Difficulty of doing business (e.g. land registration process) and lack of detailed state
development masterplan for industrial areas could de-motivate investors
Lack of a targeted strategy to attract investors
•
Current investor-attraction strategy includes adhoc presence at trade fairs and case-
by-case tax rebates, but no single strategy to attract & incentivize processing plants
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