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. Governor Alex Otti formally assured the bank of the state’s readiness to provide co-financing and required infrastructure to secure inclusion in the second tranche.
Governor Otti made the commitment during a meeting with an AfDB pre-appraisal mission team, led by Mr. Bernard Onzima, at his residence in Nvosi, Isialangwa South Local Government Area. He pledged the state’s commitment to delivering counterpart funding and complementary infrastructure, specifically access roads and electricity, to support the project. The governor expressed gratitude for Abia’s selection after the state was excluded from Tranche 1, stating the administration would do everything possible to ensure successful participation.
The pre-appraisal mission is assessing Abia’s preparedness across several critical areas, including site suitability, environmental and social safeguards compliance, financial management, procurement capacity, and private sector engagement. The team has already inspected the proposed site in Ukwa West, with Governor Otti noting additional locations are available if the full $200 million allocation is considered for the state. Commissioner for Agriculture, Cliff Agbaeze, explained that Ukwa West was chosen for its proximity to the Abia Innovation and Industrial Park, with plans to expand processing activities to other local government areas.
The SAPZ initiative is a multi-tranche financing model designed to address downstream agro-processing challenges and de-risk private investment in agriculture across Africa. Due to funding constraints, the AfDB adopted this phased approach. Tranche 1, covering 10 states, received board approval in December 2025. Tranche 2 will target eight states with a $200 million AfDB facility, supplemented by an expected $150 million co-financing package from the Islamic Development Bank. Approximately 27 states have expressed interest for Phase 2.
Mr. Onzima highlighted that the mission’s focus includes evaluating the state’s engagement with the private sector, as sustainable agro-industrial zones depend on public-private collaboration. Governor Otti also commended the AfDB for its support under the separate Abia State Integrated Infrastructure Development Project, noting the state has recently paid its counterpart funding to accelerate implementation.
The partnership signifies a major step in Abia’s agricultural economic strategy. Successful completion of the pre-appraisal and subsequent compliance will position the state to access significant funding for infrastructure that aims to boost agro-processing, create jobs, and enhance food security, aligning with both national development goals and the AfDB’s broader agenda to transform African agriculture.
