AfDB to Launch SAPZ Phase 1 Project in Kaduna, Cross River April 8

The African Development Bank (AfDB) says it will launch phase one of the $538 million special agro-industrial processing zone (SAPZ) programme in Kaduna on April 8.

In a statement on Sunday, the bank said a groundbreaking ceremony will also be held to kickstart the programme in Cross River on April 10.

“Nigeria is set to revolutionize its agricultural landscape as construction begins on the landmark Special Agro-Industrial Processing Zones (SAPZ) project—a flagship initiative of the African Development Bank Group’s Feed Africa strategy,” the statement reads.

“Kaduna and Cross River States will lead this agricultural transformation, marking a pivotal shift in Nigeria’s approach to agribusiness and food security.

“The federal government of Nigeria, in strategic partnership with the African Development Bank Group and key international partners—the Islamic Development Bank, International Fund for Agricultural Development, and Africa Grow Together Fund—will inaugurate Phase 1 Implementation of the SAPZ programme.

“This represents a bold step toward comprehensive agro-industrial development across the nation.”

SHETTIMA, ADESINA TO LAUNCH CONSTRUCTION
According to the statement, Vice-President Kashim Shettima and Akinwumi Adesina, the AfDB president, will lead the initiative, officially launching construction in Kaduna and Cross River.

“With an unprecedented investment of $538 million, SAPZ Phase 1 stands as African Development Bank’s largest programme in any African country to date,” the statement said.

“The official groundbreaking ceremonies are scheduled for April 8 in Kaduna State and April 10 in Cross River State—a timely intervention as Nigeria confronts mounting food insecurity challenges and seeks economic diversification.”

The statement also said the initiative embodies President Bola Tinubu’s commitment to boosting food security, creating sustainable employment, and revitalising peri-urban economies through innovative public-private partnerships.

“Leading private sector partners will spearhead the design, development, and operation of these zones, establishing a blueprint for sustainable agro-industrial growth,” it said.

“The launch will catalyse momentum for SAPZ Phase 2, with 28 additional states already positioned to join this agricultural renaissance.

“Recall that the bank raised an unprecedented $2.2 billion commitment at the recent Africa investment forum in Rabat, Morocco for the Nigeria Phase 2 SAPZ. Lessons learnt from Phase 1 will lead to a faster implementation of this next phase.”

In December 2021, the AfDB announced that its board approved a $210 million loan to co-finance phase one of Nigeria’s SAPZ programme.

The amount comprised $160 million from the AfDB and $50 million from the Africa Growing Together Fund.

However, in February, the bank expressed disappointment about the SAPZ implementation, describing the overall performance of the first phase of the programme as “problematic.”

According to the statement, Adesina said the programme is aimed at transforming Nigeria into a global agribusiness leader by strategically leveraging co-financing and private sector expertise.

“The Special Agro-Industrial Processing Zone is about developing new economic zones across Africa close to where farmers are,” he said.

“These zones have enabling infrastructure—power, water, roads, irrigation—and today, we’re investing over $3 billion in more than 11 countries.”

He emphasised that transformation without agricultural transformation is incomplete “because agriculture touches the lives of people at the grassroots level”.