How To Make Huge Profit Supplying Gum Arabic To Local Industries In Nigeria.

Gum Arabic is a leguminous tree species that is well adapted to Sudan and Sahalian agro-ecology of Africa. There are over three hundred (300) species in this family. Notable among them is Acacia Senegal because it produces grade 1 quality gum. Its distribution is localized in Africa.

The gum is obtained as dry exudates from the stem and branches of Acacia Senegal and/or Acacia seyal when the plant is injured. The majority of Gum Arabic is produced from seventeen (17) African countries (Fourteen (14) of which were members of the NGARA network in 2007) in varying quantity and quality.

These countries include: Sudan, Chad, Nigeria, Cameroon, Niger, Senegal, Mali, Mauritania, Burkina Faso, Kenya, Ethiopia, Tanzania, Eritrea, Somalia, Zimbabwe, Uganda and Ghana.

There are over one thousand, one hundred (1,100) Acacia species worldwide. However Acacia Senegal and Acacia Seyal are the most commercially exploited species.

Nigeria has three (3) grades of Gum Arabic;

 Acacia Senegal (grade 1)
 Acacia Seyal (Grade 2)
 Combretum (Grade 3)

The major Acacia utilized for commercial Gum Arabic production in Nigeria are Acacia Senegal and Acacia seyal. Nigeria is the second largest producer of the crop in the world after Sudan with average production of twenty thousand (20,000) metric tonnes of all grades of Gum Arabic.

Production of Gum Arabic covers fourteen (14) states of the Federation namely Borno, Yobe, Jigawa, Bauchi, Gombe, Taraba, Plateau, Adamawa, Sokoto, Kebbi, Katsina, Zamfara, Nasarawa and Niger with an estimated population of four million (4,000,000) Nigerians engaged in its cultivation and trade.

The gum has a wide range of industrial uses especially, in areas of feed, textiles and pharmaceutical industries.

In food products, it serves as a stabilizer, emulsifier, and binding agent for chewing gums, ice creams and jams. In pharmaceuticals, the gum is a binder in iozenges, tablets, pills, throat pastilles and cough drops. In textile industry it is used for fabric stiffening and as a binder for textile printing gums; it is also used in the plastic industry.

In miscellaneous industries it is used in producing ink, water colours, paints, carbon papers, pottery glaces etc.
However, the main use of gum arabic remains in confectionery, hard gums, soft gum and gum pastilles.

Presently Nigeria is the second largest producer and export of Gum Arabic in the world and Foraminifera Market Research seeks to expose the investment opportunity in the export of the product through this feasibility report.

Table of Contents

1. Introduction 1.1 Executive Summary 1.2 Business Opportunity 1.3 Country Background 2. Technical Analysis 2.1 The Project 2.2 Product Description 2.3 Product Location and Distribution 2.4 Legal Considerations 3. Opportunity 3.1 Market Overview 3.2 Demand and Supply 3.3 Customer Profile 3.4 Primary Competition 4. Socio- Economic and SWOT Analysis of the Project 4.1.1 Generation of Employment 4.1.2 Source of Government Revenue 4.1.3 Foreign Exchange Generation 4.2 SWOT Analysis 5. Risk Identification and Mitigation Strategy 5.2 Critical Success Factor 6. Financial Analysis

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