The Abia State Government has concluded plans to partner with the African Development Bank on a $200 million agro-industrial project under Tranche 2 of the Special Agro-Industrial Processing Zones programme.
Governor Alex Otti on Monday assured the bank of the state’s readiness to co-finance critical infrastructure and meet all conditions required for inclusion in the second tranche of the SAPZ initiative.
Otti gave the assurance while receiving an AfDB pre-appraisal mission team led by Mr Bernard Onzima at his country home in Nvosi, Isialangwa South Local Government Area.
He pledged the state’s commitment to providing counterpart funding and complementary infrastructure, including access roads and electricity, and expressed appreciation to the bank for considering Abia under Tranche 2 after the state missed out in Tranche 1.
“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. You wouldn’t have any problems, as we will do everything possible to ensure that we benefit,” Otti said.
The governor, who noted that the delegation had already visited the proposed agro-industrial site in Ukwa West, said additional sites were available should the full $200 million allocation be considered for the state.
He also commended the AfDB for its support under the Abia State Integrated Infrastructure Development Project and disclosed that the state had recently paid its counterpart funding to accelerate implementation.
Otti expressed optimism about strengthening ties with the bank and its partners, including the Islamic Development Bank, which is expected to co-finance the programme.
Earlier, Onzima said the team was in Abia on a pre-appraisal mission for Phase 2 of the SAPZ programme, an initiative designed to address downstream agro-processing challenges and de-risk private investment in agriculture across Africa.
He explained that the SAPZ initiative, currently valued at over $1.2 billion across participating countries, operates a multi-tranche financing model due to funding headroom constraints.
“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,” he said.
According to him, Tranche 1, covering 10 states, received board approval in December 2025, while 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 the mission was assessing the state’s readiness in terms of site suitability, environmental and social safeguards compliance, financial management systems, procurement capacity and private sector engagement.
“We are assessing readiness in terms of environmental and social safeguards studies and engagement with the private sector, because agro-industrial processing zones will be more sustainable when the public sector collaborates with the private sector,” he said.
Also speaking, the Commissioner for Agriculture, Cliff Agbaeze, said Ukwa West was selected due to its proximity to the Abia Innovation and Industrial Park and outlined plans to expand agro-processing activities across other local government areas.
