By Agrobroadcast Team
Abia State is positioning itself to attract a $200 million investment in agro-industrial development through a proposed partnership with the African Development Bank (AfDB) under the second tranche of the Special Agro-Industrial Processing Zones (SAPZ) programme.
Governor Alex Otti gave assurances of the state’s preparedness to meet all eligibility requirements, including counterpart financing and provision of enabling infrastructure, while receiving an AfDB pre-appraisal mission led by Mr. Bernard Onzima at his country home in Nvosi, Isialangwa South Local Government Area.
The governor welcomed Abia’s consideration for Tranche 2 of the SAPZ initiative, noting that the state had not been included in the first phase. He pledged that the government would provide complementary infrastructure such as access roads and stable electricity to support the project’s implementation.
“We are pleased to be considered among the states for Tranche 2, having missed out previously. We are fully ready to co-finance the project and create the necessary environment to ensure its success,” Otti said.
He disclosed that members of the AfDB team had inspected the proposed agro-industrial site in Ukwa West Local Government Area, adding that additional locations could be made available should the full $200 million allocation be approved for the state.
Otti also acknowledged the bank’s ongoing support under the Abia State Integrated Infrastructure Development Project, revealing that the state had recently fulfilled its counterpart funding obligations to fast-track implementation. He expressed optimism about deepening collaboration with the AfDB and its development partners, including the Islamic Development Bank, which is expected to provide co-financing for the programme.
Earlier, Onzima explained that the delegation was in Abia on a pre-appraisal mission for Phase 2 of the SAPZ programme, an initiative aimed at tackling bottlenecks in agro-processing and reducing investment risks in the agricultural sector across Africa.
He stated that the SAPZ programme, currently valued at over $1.2 billion across participating countries, operates under a multi-tranche financing structure due to funding capacity considerations. According to him, Tranche 1, covering 10 states, secured board approval in December 2025, while Tranche 2 is expected to support eight states through a $200 million AfDB facility, complemented by an anticipated $150 million from the Islamic Development Bank.
Onzima noted that the mission was evaluating Abia’s readiness, focusing on site suitability, environmental and social safeguards compliance, financial management systems, procurement capacity, and private sector engagement.
He stressed that agro-industrial processing zones are more sustainable when anchored on strong public-private sector collaboration.
Also speaking, the Commissioner for Agriculture, Cliff Agbaeze, said Ukwa West was selected as the proposed site due to its proximity to the Abia Innovation and Industrial Park. He added that the state government plans to expand agro-processing activities to other local government areas as part of a broader agricultural transformation strategy.