Agro-Processing: How SAPZ implementation can change Africa’s economy

Agro-Processing: How SAPZ implementation can change Africa’s economy

The Special Agro-Industrial Processing Zones (SAPZ) of the African Development Bank (AfDB) has been identified as a trigger that could create a fundamental change in Africa’s economic transformation.

SAPZ is an integrated initiative of the AfDB ‘Feed Africa’ strategic priority. The programme aims to provide end-to-end solutions and services that reduce the risk involved in the production, processing, and marketing operations of private sector actors as they boost manufacturing and transformation capacity in production areas.

SAPZs are intended to focus on agro-processing activities in areas with high levels of agricultural potential.

They enable farmers, agricultural producers, processors, aggregators, and distributors to work together in one location, lowering transaction costs and sharing business development services to boost productivity and competitiveness.

AfDB is a financial provider to African governments and private companies investing in the regional member countries. The AfDB mission is to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development.

For Nigeria

iBrandTV gathered that AFDB and its partners plan would raise $520 million for the first phase of Nigeria’s Special Agro-industrial Processing Zones Programme (SAPZ). 

The aim is to improved livelihoods for millions in the rural areas as well as poverty reduction. Both Federal and State governments in the country have expressed overwhelming support for the initiative. 

The $520 million would co-finance the first phase of the program in Nigeria, be implemented in phases across six geo-political zones.” All 36 States in Nigeria and the Federal Capital Territory would be eligible to participate in the SAPZ programme. In addition to the Federal Capital Territory and seven states – Kaduna, Kano, Kwara, Imo, Cross River, Ogun, and Oyo – participating in Phase 1, several other states have indicated an interest in the SAPZ programme. These include Bauchi, Lagos, Niger, Jigawa, Ekiti, Lagos, Taraba, Benue, Sokoto, Ondo, Nasarawa, Gombe, and Kogi.

Partnership agro-industrialisation

AfDB in a statement issued on Tuesday, gave participants shared insights on how agro-industrialisation could create massive job opportunities, boost agricultural productivity, generate wealth and improve the quality of life for people across the continent.

Participants also agreed to work together under a cooperation framework for SAPZ implementation in Africa under the leadership of the AfDB.

READ ALSO: AfDB, partners agree to strengthen commitment to gender equality

According to Ahmed Bennis, the Secretary-General, Africa Economic Zones Organisation, the value of the agribusiness sector is expected to reach one trillion dollars by 2030.

“Those of us working in the economic zones sector will work closely with the African Development Bank initiative on this huge opportunity.”

Three AfDB vice presidents addressed the virtual gathering, detailing the bank’s strategy for scaling up employment opportunities and income generation through SAPZs.

Dr Beth Dunford, the bank’s Vice President for Agriculture, Human and Social Development said the stakes “are extremely high” during this week of the UN Food Systems Summit.

“We stakeholders in Africa’s growth and development need to form a common vision on a road map toward agro-industrialisation on the continent.

“At the African Development Bank, we believe that turnkey projects, such as Special Agro-industrial Processing Zones are crucial to development.

“They bring together the ecosystem in regional value chains and key commodities, bringing together production, post-harvest, logistics, and processing to feed Africa’s growing cities and export to the world in a sustainable, green, and affordable way,” she added.

Solomon Quaynor, the bank’s Vice President for Private Sector, Infrastructure and Industrialisation, said “If we are going to create jobs, we need to enable the private sector to thrive. Overall, it is about industrialising Africa.”

Dr Kevin Kariuki, the bank’s Vice President for Power, Energy, Climate and Green Growth, encouraged partners to work together on an implementation model for SAPZs, making a case for renewable energy to ensure optimal benefit.

Prof. Banji Oyelaran-Oyeyinka, the Special Adviser on Industrialisation to the AfDB President, said the experiences and commitment shared by participants were valuable ingredients for a cooperation framework that would ensure high-level leadership and inter-agency coordination.

The framework would also ensure that each zone attracts the right investment, and implements to high standards, and avoids unpredictable risks like political setbacks.

The gathering brought together representatives from development finance institutions, private developers of Special Economic Zones, and other key global and regional players in Africa’s agri-business sector.

Leading financiers and developers attending the session included: African Export-Import Bank, Industrial Development Corporation, Africa Finance Corporation, Trade and Development Bank, OPEC Fund for International Development; and Africa 50.

Others are West African Development Bank, Arab Bank for Economic Development in Africa, Islamic Development Bank, and International Fund for Agricultural Development.

 

 

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