SDG 9.4 + 8.5 – Promote inclusive and sustainable industrialisation, supporting economic growth and job creation.

Expected impact: Tenants are expected to benefit from a 40% increase in net profit, contributing to economic growth. In line with GuarantCo’s counter guarantee amount, we expect to support the addition of four new tenants which will create 2k indirect jobs.

Challenge: The lack of exclusively privately funded free zones in Nigeria. 17 are active but have been financed by the government or PPPs. Further private sector investment is crucial to enable greater manufacturing and trade.

Channel: Lagos Free Zone is the first economic zone in Nigeria to benefit from fully private funding with a large proportion of debt originating from local investors.

Outcome: This will demonstrate the viability of bond issuances as an instrument to facilitate private sector investment in special economic zones (SEZ)s and free trade zones to enhance economic growth.

Mobilised an expected $43m of local currency from local Nigerian pension funds and institutional investors.

Transition risk: The investment is Paris-aligned.

• There is no access to a stable grid that can service the area. An on-site gas power generation facility is required to attract tenants and keep operating costs low
• Piped gas to tenants will also be required for heat and industrial purposes and there are no viable alternatives available
• Gas supply contracts end before 2050 There are incentives in place for tenants to add rooftop solar as a power source
• IFC Edge^² certification will be pursued for commercial buildings and tenants where possible.

Resilience: A climate risk assessment was conducted, and the client will develop an action plan to manage physical climate risks. There are three operational fire trucks on site to mitigate fire risk, vegetation is gradually being cleared from the boundary and there are measures in place to manage the risk of coastal flooding.

^{2. IFC Edge is an approach developed by the International Finance Corporation (IFC) to design and certify resource efficient and Zero Carbon buildings.}

As part of the due diligence process, 14 HSES improvements and one enhancement were identified which are now reflected in the Project Environmental and Social Action Plan (ESAP). The enhancement includes developing a zone level sustainability plan.