The Enugu State Government has signed a forty billion naira deal with Jelfah Group to revitalize the state-owned Sunrise Flour Mills located at Emene in Enugu East Local Government Area.
Signing the deal at the Government House Enugu, the Enugu State Governor Dr. Peter Ndubuisi Mbah said revitalizing Sunrise Flour Mill is in line with his administration’s zero tolerance to moribund government assets as it aims to grow the state’s economy from $4.4bn to $30bn through private sector investment; Sunrise Flour Mills was commissioned in 1983 and went moribund a couple of years later.
The terms of the partnership between the Enugu State Government and Jelfah Group state that the group acquires a 60% equity stake and will invest twenty-four billion naira in the mills, twenty-two billion naira for revitalization, and two billion naira to benefit the state directly. The state government keeps 40% based on the company’s existing assets.
Speaking at the signing ceremony and public announcement of the transaction, the Governor Mbah said,
“Just a few months ago, we secured an investment size of N100bn with a company known as Pragmatic Palms Limited, and today we have just witnessed Enugu State, again, securing another investment size of N40bn.”
“This investment will see Jelfah Group investing N24bn into the existing Enugu Sunrise Flour Mills. N22bn will be directed into revamping and resuscitation of the Sunrise Flour Mill and N2bn is going to come to the State by way of cash.”
“The Special Purpose Vehicle (SPV) is also going to own 10,000 hectares of farmland, where we are going to cultivate the inputs for the flour mills such as cassava and grain.
“This is a testament that when we say Enugu State is open for business, we are truly committed to it. We understand how to make a win-win deal, both for the investors and for the people of Enugu State,” Mbah stated.
Assuring Jelfah group of continued support, the Enugu State Governor woes investors to the state assuring them ease of doing business.
“We hope that this signals to other investors, who may still be on the fence that Enugu is actually ready for business. We are committed to not just creating the enabling environment, but also working with investors to help them de-risk investments and grow their businesses,” the Governor assures.
Speaking at the deal signing ceremony, the Chairman of Jelfah Group, Moses Saromi, reveals that the present administration’s dynamic leadership and ease of doing business in the state will enable the Group to transform Sunrise Mills into centre of excellence.
“Your policies have unlocked new opportunities for private sector participation, and Jelfah is proud to be part of this progressive movement.”
“This acquisition of 60 percent equity not only aligns with Jelfah’s long-term vision, but also furthers the governor’s ambition of empowering the people, revitalizing moribund assets, and ensuring sustainable development. And together with our consortium partners, our goal is to transform Sunrise Four Mills into a centre of excellence, harnessing our collective expertise to drive growth and value creation.”
“So, we firmly believe that this partnership will catalyze positive change, spark job creation, elevate local production capacities, and contribute significantly to the socio-economic advancement of Enugu State,” Moses Saromi said.
The Jelfah Group boss further revealed the group’s short, medium, and long-term plans for the flour mills.
“In another 90 days, you are going to experience a lot of movements and activities with regards to the revitalization of the flour mills.”
“Our activities will include recruiting people who will run the plant, including the indigenous people of the state. And as the governor rightly said, we are creating a model that will provide the inputs for the mills such as the 10,000 hectares of farmlands to cultivate all the inputs for the mills,” Jelfah Group Chairman said.
Jelfah Nigeria Limited is an integrated agro-allied investment company registered in Nigeria for agricultural processing, manufacturing, packaging, financing and other services within the agricultural value chain across Africa.
“The group believes large-scale and small-scale farmers should work hand in hand to increase volumes and stimulate opportunities through smallholder ‘out-grower’ programs.”
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