"A geographical concentration of inter-related industries that are engaged in the manufacturing of similar products" .
For the purpose of this short article, I will take the above
definition to explain what a cluster is and what Abia Stand to gain from
leather and garment cluster.
Recently, MadeInAba has become a trademark for locally manufactured shoes and bags. According to a report by Sam Hart,
The Aba Leather and Garment Industrial City has taken off in earnest.
The Industrial City is located at Umukalika in Obingwa LGA within the greater Aba Metropolis.
He noted that the Industrial City is a full-service Public Private
Partnership Initiative wherein the Abia State Government is providing
the land and infrastructure while a Private Developer is providing the
buildings and managing the offtake.
Facilities will include
latest equipment and machinery for processing finished leather goods,
industrial clothing line management and an ambient environment for
enterprises to thrive.
The Industrial City comes with a Waste Recycling Power Plant to Power the entire complex and guarantee 24hr power supply.
In one of the articles in wrote earlier in support of the campaign for
made in Aba products, I said that the Governor of Abia State Dr. Ikpeazu
has distinguished himself in the quest for self sufficiency. It's a
project that has continued to give good record. The Governor's effort at
diversifying the state’s economy through his vigorous campaign of
bringing the Made in Aba products to the global attention is a
commitment that has shown his readiness to leave a foot print in the
sand of time.
In Today's Nigeria , assessing foreign exchange has
become a bumpy ride. Forex has compounded the challenge faced in the
area of importation of foreign goods. The difficulty has resulted to
increase in the prices of goods.

Increment in the prices of goods
has a devastating effect in the economy, it can as well result to
scarcity of products. Law of demand made it clearer; The higher the
price, the lower the quantity demanded and the lower the quantity
supplied to the market. Consumers are bearing the incidence of the price
increment.
Any Government that wishes to succeed in this
economic recession must look inwards, restrategize and focus on locally
made goods. While it provides a fall back plan in terms of
diversification, it will also encourage internal movement of money,
price reduction, creation of wealth, skill acquisition, employment,
innovation, as well as discourages idleness.
Recently, Nigeria
military ordered 50,000 locally made boots from Aba. While the target
includes generating more revenue for the state, it will encourage
economics of scale. These capacity requires larger markets that will
expand businesses in Abia State. On the long run, the flow of resources
will improve the standard of living of Abians.
On the side of
business owners, a cluster will drive the needed competition for rapid
flow of business related knowledge among firms, thereby leading to more
rapid innovation through market research.
Manufacturers must
continue to be innovative so as to remain relevant in the new trend of
business development. A healthy competition will result to an enhanced
quality of Aba made products in the market.
Increased
productivity as a result of exchange of ideas, combined or joint
solution to challenges in the business circle will be achieved through
cluster.
It is beneficial in the area of corporate financing.
Identifying manufacturers, products and the level of distribution, could
make it easier for proper financing especially when it is channelled
through a specialized trade association. Through cluster, Business
owners develop market plans which result to expansion of boundaries
thereby encouraging economies of scale. The effects of economics of
scale result to expansion of markets, capacity building, as well as
improvement in internally generated revenue of the state.
Suppliers
are easily identified in a cluster. Contracts for production of
products will be channeled directly to the core producers which will
eliminate the activities of meddlesome interlopers in the market.
Issue of multiple tax will be eliminated since tax in this cluster will
be streamlined accordingly, as such, will also make it easier for the
State to account for the exact amount that accrue to the State purse
through taxation.
Having identified some of the gains, we can
agree that Dr Ikpeazu’s strategy in this regard that is aimed at
repositioning the State, is a win win approach.