Positioning Abia State as a premier residential, business and tourism destination with the ultimate objective of uplifting the lives of the people is a major policy of the current administration in the state.
Consequently, the cluster concept model introduced by Governor Okezie Ikpeazu is geared towards providing the enabling environment and infrastructure to facilitate the growth and development of the state.
The decision to establish an industrial city for the leather and garment sub-sectors of the economy was to address myriad of challenges faced by the operators, thereby increase their productivity.
An industrial cluster is the geographical location of group of artisans or manufacturers producing the same product; where enough resources and competences amass reach a critical threshold, giving it a key position in a given economic branch of activity, and with a decisive sustainable competitive advantage over other places, or even a world supremacy in that field (e.g. Silicon Valley and Hollywood).
Michael Porter claims that clusters have the potential to affect competition in three ways: by increasing the productivity of the companies in the cluster, by driving innovation in the field, and by stimulating new businesses in the field.
According to Porter, in the modern global economy, comparative advantage-how certain locations have special endowments (i.e., harbour, cheap labour) to overcome heavy input costs-is less relevant. Now, competitive advantage-how companies make productive use of inputs, requiring continual innovation is more important.
Porter argues that economic activities are embedded in social activities; that ‘social glue binds clusters together’. This is supported by recent research showing that particularly in regional and rural areas, significantly more innovation takes place in communities, which have stronger inter-personal networks.
The project, which is ongoing at Umukalika, in Obingwa Local Government Area of the state, about seven kilometres away from the Aba city centre, is sited on about 35 acres of land and will be completed in the second quarter of 2018.
Also, the signing of a memorandum of understanding between the Abia State government and Crown Realties plc, for the construction of Enyimba Free Trade and Industrial Zone in Aba, the commercial hub of Abia State, on public private partnership (PPP) basis, is a boost towards the industrialisation of Abia State.
The project is expected to be strategically located within Aba with world-class ancillary facilities and infrastructure.
Crown Realties will conceptualise, design, finance, develop, operate and maintain the industrial economic Free Trade Zone that integrates industrial production, marketing, warehousing, logistics, leisure, residential accommodation, schools, hospitals and entertainment centres, among other facilities.
Aba, the commercial hub of Abia State, has one of the largest concentrations of micro, small and medium enterprises (MSMEs) in Nigeria and a bulk of this number are engaged in leather works, steel fabrication and garment making, which could be attributed to the popularity of the city.
It is estimated that Aba hosts 110,000 shoemakers and 50,000 garment makers.
The ingenuity of Aba artisans, especially, the garment and leather clusters-comprising of shoe, belt and bag makers, attracted the United Nations Industrial Development Organisation (UNIDO) in partnership with the Federal Government, to set up a Common Facility Centre (CFC) in the city, to support the clusters to further develop their skills.
Shoe makers in Aba, had appealed to the State Government to develop proposed industrial cluster at Umukalika, in Obingwa Local Government Area of the State, to provide a more conducive environment for the sector to perform optimally.
They argued that their present location at Ariaria, lacked basic amenities and so not conducive for productive activity.
They explained that the finished leather sector (FLS) has capacity to shore up the State’s internally generated revenue (IGR), if basic infrastructure of constant electricity, good roads and water are provided.
Francis Chukwu of Frantonia Industries Limited, one of the leading shoe manufacturing firms in Aba, argued that for local producers to compete favourably at the international market that electricity and other infrastructure must be put right.
He stressed that epileptic power supply and multiple taxation, were major challenges faced by real sector operators in Nigeria and urged Government to support the sector, which according to him holds key to the industrial development of the country.
He stated that the present location of the Aba finished leather cluster was designed for residential purposes, and appealed to the State Government to ensure the realization of an industrial cluster for the FL sector.
The Aba finished leather sector, said to be the biggest in West Africa, with about 50,000 people directly engaged in the manufacture of shoes, belts and bags and a production capacity of about one million pairs of shoes per week, currently produces for local and international markets, although unofficially.
Aba made shoes and other finished leather products are popular in Cameroon, Cote d’Ivoire, Ghana and other West and East African countries.
The Governor in approving the establishment of clusters in Aba, said, “Our story as a people is one of entrepreneurship, resourcefulness and diligence. This is our pride. We have astounded the world with our homegrown technical skills, especially during a period of pervasive adversity, and followed it up with our trade and commercial prowess elevating one of our cities, Aba, into a prominent commercial hub within the West African region.
“This historic prominence is to become our future narrative. The time is ripe to use the over 110,000 shoemakers and 50,000 garment makers as a launching pad to enable Abia to truly become the undisputed SME capital of Nigeria.”
He stated that his administration was committed to providing the enabling environment and infrastructure to facilitate the growth and development of Abia and its people; positioning it as a premier residential, business and tourism destination, with the ultimate objective of uplifting the lives of the people.
He recalled that Aba was for many years a thriving hub for manufacturing and commerce until epileptic electricity supply and insecurity forced the shutdown of most indigenous and foreign owned industries.
Ikpeazu recognized and appreciated the efforts of the Geometric Power Group, towards providing a solution to the perennial challenges of electricity supply to the State.
The Governor observed that the forthcoming operationalisation of the plant would provide a critical input towards the actualization of its blueprint and roadmap for the regeneration of Aba and the entire Abia State.
