Value Creation and Development Impact
As a group, ARISE has diversified the Gabonese economy from dependence on crude oil exports, created jobs (over 30k), increased foreign currency earnings and raised economic output, and is expected to do the same for Benin, Togo & Cote d’Ivoire.
The Gabon special economic zone (NKOK SEZ) where ARISE IIP is situated has achieved significant development impact, including:
- Contributing US$842million to Gabon’s GDP.
- Creating 8,200 direct and 26,000 indirect jobs.
- Attracting 107 industrial, commercial, and residential investors that have collectively invested US$1.7bn (11% of 2020 GDP) into the non-oil economy.
- Generating US$1bn of wood product exports in 2019 compared to US$350 million in 2010 (3x increase), equivalent to 10% of GDP.
- Making Gabon the second-highest exporter of sawn wood in Africa and the tenth globally; the third largest veneer exporter globally and the largest in Africa and a leading player in furniture manufacturing and export in Africa.
- Increasing the value of Gabon’s wood exports from US$150/cbm for logs to US$4,000/cbm for furniture.
Benin SEZ is expected to generate US$2bn in additional GDP, US$3bn in exports and impact 600k farmers, whereas Togo SEZ is expected to generate US$0.75bn in additional GDP, US$1bn in additional exports and impact over 200 farmers.
Africa largely outsources the processing of its raw materials, exporting products with low value addition and importing mainly processed products, a trading structure that entails significant costs, not least from the carbon footprint incurred in the round-trip shipping, and because much of the processing done external to the region is powered by coal plants.