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Eti-osa, Lagos has a cluster that isn't organised and lack the enough skill and training to produce

high quality goods for local and international market. The furniture industry.

In Eti-osa there are lots of small microscale carpentry shops employing about 1 or 2 experience
carpenters and having some apprentices work with them.

There is room for collaboration between these carpentry shops. They currently have customers
but collaboration and organisation can increase and grow there economic activity in the
locality.

If we are to help these furniture producers, they must organise and collectively come together
to form a cluster of carpentry shops. If the private financial institutions whether cooperative
banks, microfinance banks or commercial banks support these producers with loans that can
help them purchase land collectively and set up shops. They will be able to purchase mordern
furniture assesories and equipment that will help save time and increase production.

The state and local government can support this cluster by reducing entry cost, making permits and
licenses seamless and easy to get. The government can get private companies that will train carpenters
and subsidize the training.

Government can also encourage supporting industries within the value chain.Exporting furniture will
increase the net worth of the industry and attract other actors. Training, certification and
standardization will ensure products meet standards for the international market.

This cluster of producers are a good start for a LED strategy. But for the strategy to work the social
capital within the cluster must growth increasingly, and the government both at the central and local
level must be actively involved. The financial institutions and investors must be ready to take on risks
with their investments. Supporting industries within the value train like (wood treatment and
processing, treated wood sales, furniture equipments, training and certification etc.) will be able to
grow. With entry of new entrepreneur into the industry, expansion of the furniture industry and the
growth of the supporting industries within the value chain; unemployment within the locality will reduce
and this will contribute to our state GDP.

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