Abia partners AfDB for Special Agro-Industrial Processing Zones project

Abia State has entered a partnership with the African Development Bank (AfDB) to participate in Phase Two of the bank’s Special Agro-Industrial Processing Zones (SAPZ) Programme, aimed at boosting agro-processing and de-risking investments across Africa.

The announcement followed a pre-appraisal visit by an AfDB delegation to Abia, led by Dr. Bernard Onzima, who explained that the initiative targets downstream agro-processing challenges in eight African member states, including Nigeria. The programme currently has a portfolio of over $1.2 billion across participating countries, with Tranche Two offering $200 million from AfDB and an expected $150 million in co-financing from the Islamic Development Bank.

“Our mission is to assess the readiness of states for Tranche Two, including site suitability, environmental and social safeguards, and private sector engagement. Agro-industrial processing zones are more sustainable when public and private sectors collaborate,” Dr. Onzima said. He confirmed that the team had visited the proposed agro-industrial hub in Ukwa West and described it as unencumbered and suitable for development.

Responding, Abia State Governor, Dr. Alex Otti, expressed full support for the initiative, pledging to co-finance the project and provide the necessary infrastructure, including access roads and electricity.

“We are ready to co-finance and provide the enabling environment for this project. We will sit with your team, understand requirements, and ensure prompt implementation,” Gov. Otti said, highlighting other potential sites across the state, including Ukwa East, Umuahia, Ikwuano, Ulonna, and the rubber plantation areas around Arochukwu and Abam.

Gov. Alex Otti with AfDB delegation

The Governor also thanked AfDB for supporting the Abia State Integrated Infrastructural Development (ABSID) project, noting that the state had already paid its counterpart funding. “We are happy with our partnership with AfDB and look forward to deepening it with the SAPZ project,” he added.

Speaking at the meeting, Abia State Commissioner for Agriculture, Dr. Cliff Agbaeze, explained that Ukwa West was chosen for its proximity to the Abia Industrial and Innovation Park, which provides essential infrastructure for the proposed agro-processing zone. He noted that other locations, including Bende and Ikwuano, would also be considered as the programme expands.

The SAPZ initiative is expected to identify bankable projects, strengthen climate-smart agriculture, and foster public-private collaboration to promote sustainable economic growth in participating states.