The African Development Bank (AfDB), Islamic Development Bank (IsDB) and the International Fund for Agricultural Development (IFAD) have assigned $1 billion to establish Special Agro-Industrial Processing Zones (SAPZs) in 24 states of the country. AfDB President, Dr. Akinwumi Adesina, disclosed this last month at the Norman Borlaug International Dialogue in Des Moines, Iowa, United States of America. Nigeria’s Vice President (VP), Kashim Shettima, attended the event in pursuance of the food security and diversification policy of the newly elected administration.
Dr. Adesina observed that the decision for such a notable investment into Nigeria’s agribusiness sector was part of the Bank’s resolve to develop 24 SAPZs in 11 countries. He explained it to be the core of the food and agriculture delivery compacts from the Dakar 2 Summit held earlier in the year in Dakar, Senegal; to support the development of agricultural value chains, food processing and value addition. The AfDB President elaborated on how it would enable infrastructure and logistics to facilitate local, regional and international trade in food. He bemoaned the fact that 249 million people on the African continent still go to bed hungry, despite the huge progress made in the agricultural sector.
Mr Shettima highlighted the FG’s resolve to providing a conducive environment for investors in the SAPZs, assuring on the creation of a SAPZ Development Authority, which would function like a one-stop shop to address all regulatory and associated issues. The funds voted by the AfDB and its partners will be for a second phase implementation, in addition to $520 million previously assigned by the 3 organizations to develop SAPZs for Phase I in Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo and the Federal Capital Territory. An estimated 1.5 million households along the entire agricultural value chain are expected to benefit directly when concluded, while a minimum of 400,000 direct jobs are targeted for creation, and up to1.6 million indirect jobs.
A Special Agro-Industrial Processing Zone (SAPZ) is a designated area or zone specifically created to promote and facilitate the development of agro-processing industries. These zones are designed to boost agricultural productivity, encourage value addition to raw agricultural produce to improve return on investments, thereby stimulating economic growth in the agriculture sector. SAPZs integrate agricultural activities with industrial processing within a defined geographical area. Its major objectives are: agro-processing focus; infrastructure development; cluster development; access to finance facilitation; technology transfer; market access enablement; job creation; sustainable agricultural development and introduction of government incentives.
SAPZs are part of broader strategies by governments and development agencies to transform agricultural systems, promote rural development and contribute to overall economic growth. The goal is to move beyond traditional agricultural practices and leverage the potential of agro-industrialization to create more value from raw agricultural products. The concept is implemented in various forms across different countries and regions, adapting to local contexts and priorities.
