Gum Arabic Export

Nigeria, like many African countries, exports crude gum arabic at low prices but re-imports processed gum at substantially higher prices to meet local manufacturing demand. This paradox offers huge investment potentials for investors willing to process and sell as there are just one or two companies doing that in the country at the moment.

Any nation that requires economic development must look inwards to identify areas where it has a comparative advantage over other nations and seek to develop the identified areas.

Apart from hydrocarbon, Nigeria has comparative in the Agricultural sector where a variety of products are produced due to the favorable climatic condition, good soil condition, and the fact that over 70% of the entire landmass of the country is arable.

Nigeria has a comparative advantage in the production and export of Gum Arabic in Africa over her counterparts due to the large arable land available for production and conducive climatic condition.

Presently Nigeria is the second-largest producer and export of Gum Arabic in the world and we here seek to expose the investment opportunity in the export of the product through this feasibility guide to export of gum arabic.

Though the second leading exporting nation for Gum Arabic in the world, Nigeria is yet to take advantage of the vast opportunity that exists in the export and value addition of Gum Arabic.

Gum Arabic is used as thickeners, suspenders, emulsifiers, stabilizers, flavor carriers, binder, and encapsulating material and there is a constant need for the product.

The return on investment on the export of Gum Arabic is estimated between 10%- 15%.