NEWS
GOV. ALEX OTTI PLEDGES CO-FINANCING AS AFRICAN DEVELOPMENT BANK EYES ABIA FOR $200M SAPZ TRANCHE 2
…as Governor Otti Hosts AFDB Pre-Appraisal Mission, Unveils Multiple Investment-Ready Agro-Industrial Sites Across Ukwa, Umuahia, Ikwuano, Bende and Arochukwu
The Executive Governor of Abia State, Dr. Alex Chioma Otti, OFR, has reaffirmed the readiness of his administration to co-finance the establishment of a Special Agro-Industrial Processing Zone (SAPZ) in the State in partnership with the African Development Bank (AFDB), signaling another bold step in the government’s drive to reposition Abia as a major agro-industrial hub.
Governor Otti gave the assurance on Monday, March 2nd, while receiving in audience a high-powered delegation from the African Development Bank led by its Team Lead, Dr. Bernard Onzima, who was in the State on a pre-appraisal mission for the Phase Two of the Special Agro-Industrial Processing Zones Programme.
Welcoming the delegation at his office, the Governor assured them that Abia State is fully prepared to meet the co-financing requirements outlined by the Bank and to provide the necessary enabling environment for the seamless takeoff and sustainability of the project.
“We can assure you that the State is ready to co-finance and provide the necessary environment, including access roads and electricity, like you mentioned.
“So, you wouldn’t have any problems. We are already doing that (providing enabling environment) in a lot of the locations. How much more when we have a project that we are going to be partnering with you.
“So, the government would sit down with your team, understand what exactly is required of us, and then we will not hesitate to handle that,“ Governor Otti assured.
Governor Otti expressed delight that Abia has been considered among the possible States for inclusion in the second tranche of the SAPZ Programme, noting that the team had already inspected the agro-industrial site in Ukwa West Local Government Area.
While acknowledging the viability of the Ukwa West location, the Governor emphasized that the State possesses vast additional land resources suitable for agro-industrial investments across different zones.
“I’m happy you have already visited the agro-industrial site in Ukwa West. But then, there are still a lot of other sites.
“There is the one in Ukwa East, and that would be Abia Palm… we have an MoU that we have signed with an international company.
“But then, beyond Ukwa, there is so much land in the northern part of the State; including the central, the Umuahia area and Ikwuano.
“There is the old farm settlement at Ulonna, and that’s around Umuahia North and Bende LGAs. Then, as you move towards Arochukwu, in Abam area, there is the rubber plantation, all sorts of sites,“ Governor Otti disclosed.
The Governor also used the opportunity to appreciate the African Development Bank for its support toward the Abia State Integrated Infrastructure Development (ABSID) project, revealing that the State has already fulfilled its counterpart funding obligations.
“Just last week, I think we paid a counterpart funding, and hopefully the project will take off any moment from now.
“So, this is just to say that we are happy with our partnership with you and it would not be out of place to even deepen it with the SAPZ project,“ Governor Otti stated.
Earlier in his remarks, the AFDB Team Lead, Dr. Bernard Onzima, explained that the delegation was in Abia for a pre-appraisal mission ahead of the second phase of the Special Agro-Industrial Processing Zones Programme.
Speaking further he said, “The Special Agro-Industrial Processing Zones Programme is an initiative of the African Development Bank that is intended to address downstream agro-processing challenges in our member States and it is therefore intended to de-risk investments in agro-processing.
“This initiative is being implemented in several countries across the continent with a portfolio of slightly over $1.2 billion now in the different regional member countries.
“So, the financing package for Tranche 2 will be $200 million from the AFDB for the 8 States that we are targeting, and we are expecting a co-financing of another $150 million from the Islamic Development Bank.
“What we are doing right now in this pre-appraisal mission is to assess their (States’) readiness to be included in Tranche 2 of the SAPZ Programme.
“We are assessing readiness in terms of the suitability of sites that have been selected. We are assessing the readiness in terms of environmental and social safeguards studies.
“We are also assessing readiness in terms of engagement with the private sector, because we think that agro-industrial processing zones will be more sustainable when the public sector collaborates with the private sector for sustainability,“ Dr Onzima stated.
Dr. Onzima noted that the team had visited the proposed agro-industrial hub at Ukwa West and described it as a good and unencumbered site, while expressing optimism that the Abia State Government would meet the co-financing expectations required for inclusion in the programme.
Also speaking during the meeting, the Abia State Commissioner for Agriculture, Dr. Cliff Agbaeze, FCIB, highlighted the strategic rationale behind the selection of Ukwa West as the primary location for the proposed agro-processing zone.
“We choose Ukwa West because of the advantage of the proposed site’s proximity to Abia Industrial and Innovation Park; because of the infrastructure that is going to be provided within that space.
“And this will be a very huge advantage to set up the special agro-processing zone.
“So, that’s why we’re doing that. We’re also going to Bende LGA, and then Ikwuano and other locations. So, I believe this is just the starting point. There are several other things we are going to do,“ Dr Agbaeze noted.
The meeting was also attended by the Senior Special Assistant to the Governor on Multilateral and Donor Agencies, Mr. Odinakachi Eric Emeh, and the Permanent Secretary, Ministry of Agriculture, Mrs. Ijeoma Aguwa, alongside other key government officials.
With Abia positioning itself as investment-ready and strategically aligning with major multilateral institutions, the proposed SAPZ initiative is expected to unlock agro-processing opportunities, attract private sector participation, create jobs, and accelerate the State’s transition from primary p
roduction to value-added agricultural industrialization.