Jelfah Nigeria Ltd has entered into a deal with the government of Enugu State to revitalise the moribund state-owned Sunrise Flour Mills, Enugu, NewsNGR gathered on Thursday.
The deal, worth N40bn, signed at the Government House, Enugu, would make Jelfah acquire a 60 per cent equity stake in Sunrise Flour Mills, with the firm expected to invest N24bn in the iconic mills.
Sunrise Flour Mill, established by the regime of former Gov Jim Nwobodo, went moribund since 1985, just two years after it was commissioned in 1983.
Enugu State will keep a 40 per cent stake of the shares of the company, according to the term of the deal.
Gov Peter Mbah had during the signing described the deal as a milestone.
Recall that the state recently signed a N100bn deal to resuscitate the moribund Enugu United Palm Products Limited, UPPL.
Mbah said the development was among the initiatives of his administration to grow the state’s economy from $4.4bn to $30bn through private sector investment.
In his words, “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.
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“This investment will see Jelfah Group investing N24bn into the existing Enugu Sunrise Flour Mills. A sum of 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.
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“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.
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“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.”
The governor assured the private investors of state support, and called on other prospective investors to come over to invest in Enugu State.
According to him, “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.”
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The Chairman of Jelfah Group, Mr Moses Saromi, said they were attracted by Governor Mbah’s vision and his speed in increasing the ease of doing business in Enugu State under his leadership. He said Jelfah was in a hurry to transform Sunrise Mills to a centre of excellence.
He said, “Your policies have unlocked new opportunities for private sector participation, and Jelfah is proud to be part of this progressive movement.
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“This acquisition of 60 per cent equity not only aligns with Jelfah’s long-term vision, but also furthers the governor’s ambition of empowering the people, revitalising 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.
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“So, we firmly believe that this partnership will catalyse positive change, spark job creation, elevate local production capacities, and contribute significantly to the socio-economic advancement of Enugu State.”
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