Abia AfDB agro-industrial project gets $200m funding as Governor Otti commits co-financing and infrastructure for SAPZ Tranche 2

The Abia State Government has finalised plans to partner with the African Development Bank (AfDB) on a $200 million agro-industrial project under Tranche 2 of the Special Agro-Industrial Processing Zones (SAPZ) programme.

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Governor Alex Otti assured the bank of the state’s readiness to co-finance critical infrastructure, including access roads and electricity, and meet all requirements for inclusion in the second tranche of the initiative.

The assurance was given while receiving an AfDB pre-appraisal mission team led by Mr Bernard Onzima at the governor’s country home in Nvosi, Isialangwa South Local Government Area.

Governor Otti expressed appreciation to the AfDB for considering Abia for Tranche 2 after the state missed out on Tranche 1. He confirmed that additional sites beyond the proposed location in Ukwa West were available should the full $200 million allocation be granted.

“I think to first of all say that we are happy to be included among the possible states to benefit from Tranche 2 of this project, having missed out on Tranche 1.

We can assure you that the state is ready to co-finance and provide the necessary environment, including access roads and electricity,” Otti said.

The governor also commended the AfDB for its ongoing support under the Abia State Integrated Infrastructure Development Project, noting that the state had recently paid its counterpart funding to accelerate implementation.

He expressed optimism about strengthening ties with the bank and its partners, including the Islamic Development Bank, expected to co-finance the programme.

Mr Bernard Onzima explained that the mission aimed to assess the state’s readiness regarding site suitability, compliance with environmental and social safeguards, financial management systems, procurement capacity, and private sector engagement.

He noted that the SAPZ initiative, valued at over $1.2 billion across participating African countries, uses a multi-tranche financing approach due to funding limitations.

“Several states have expressed interest in participating, about 27 states in Phase 2. Because of headroom challenges, the bank adopted a multi-tranche financing approach.

Tranche 2 will target eight states with a $200 million AfDB facility, alongside an expected $150 million co-financing package from the Islamic Development Bank,” Onzima said.

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Commissioner for Agriculture Cliff Agbaeze highlighted that Ukwa West was selected for its proximity to the Abia Innovation and Industrial Park, with plans to expand agro-processing activities to other local government areas to maximise economic impact.