AfDB starts distributing $540 million in national Agro-Industrial Funds
AfDB starts distributing $540 million in national Agro-Industrial Funds
AfDB: The first stage of the $540 million Agro-Industrial Funds disbursement process for the creation of Special Agro-Industrial Processing Zones (SAPZs) around the nation has been initiated by the African Development Bank (ADfB).
This was revealed on Monday at the Presidential Villa when Vice President Kashim Shettima received separate reports from the bank and the United Nations Industrial Development Organization (UNIDO) regarding the state of projects being carried out in Nigeria. Prof. Banji Oyelaran-Oyeyinka, the AfDB President’s Senior Special Adviser on Industrialization, made this disclosure.
The fund is a component of the government of Nigeria’s endeavor to guarantee food security within the nation.
Phase one of the creation of processing zones would benefit Oyo, Kaduna, and Cross River, while other states will receive theirs as soon as their documentation is completed, according to Oyelaran-Oyeyinka.
Oyelaran-Oyeyinka gave the Vice President the presentation from AfDB and stated,
The African Development Bank launched the Special Agro-Industrial Processing Zones (SAPZ) program to harness the strength of commercial agriculture and food production and transform rural areas into prosperous economic zones.
“Supporting equitable and sustainable agro-industrial development in Nigeria is the main goal. The project’s first phase is currently in the payout stage. We hope that the other states will expedite their documentation so that we may expedite the disbursements to Kaduna, Oyo, and Cross River States, which are currently in the process.
“We are expecting every state to find a partner who will bring equity and join up with them. We have raised $540,000,000 in catalytic funding.” The project is spearheaded by the business sector but supported by the government.
Furthermore, as the SSA to the President of the AfDB noted, the Federal Capital Territory (FCT) and seven states—Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo—are included in the first phase of SAPZ implementation.
“Ogun State opted not to accept the loan after finding a partner for the project. In essence, we will disburse the debt to the other states. Next up is getting ready for phase two, which will involve 27 states. Despite the high demand, we must give priority to those who move quickly.
We have established the states’ eligibility standards and ranked them. According to Oyelaran-Oyeyinka, “We anticipate them to have an environmental impact study, a feasibility report, and a commitment to counterpart funding.“
History
The International Fund for Agricultural Development, the Islamic Development Bank (IDB), and the African Development Bank (AfDB) had earlier announced that they have voted $1 billion to establish unique agro-industrial processing zones in 24 states of Nigeria. This information was first reported by Nairametrics.
The initial $520 million allocated by the development partners for the establishment of eight unique agro-industrial processing zones in Nigeria is augmented by the $1 billion pledge.
The guarantees to Nigerian agribusiness were revealed by Dr. Akinwumi A. Adesina, President of the African Development Bank Group, during the Norman Borlaug International Dialogue, World Food Prize 2023, in Des Moines, Iowa, USA.
Dr. Adesina claims that the determination to establish Special Agro-Industrial Processing Zones (SAPZs) in 13 nations was a factor in the decision to invest such large sums of money in Nigeria’s agricultural sector.
“To support the growth of agricultural value chains, food processing, and value addition, as well as to enable infrastructure and logistics to promote local, regional, and global trade in food, we are heavily investing in the development of SAPZs.”
“With a total commitment of $1.5 billion, the African Construction Bank Group is investing $853 million and has secured additional co-financing of $661 million for the construction of the Special Agro-Industrial Processing Zones. We are implementing successful alliances on a large scale.
We are now establishing 25 Special Agro-Industrial Processing Zones throughout 13 nations, according to Adeshina.
