The Governor of Abia State, Alex Otti, has reaffirmed his administration’s commitment to agricultural industrialization as the African Development Bank (AFDB) begins a pre-appraisal mission to assess the state’s readiness for Phase 2 of the Special Agro-Industrial Processing Zones (SAPZ) Programme.
Speaking during a meeting with the visiting delegation, Governor Otti expressed optimism that Abia would secure a place in the second tranche of the programme after missing out in the first round.
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“We are happy to be included in the possible states to benefit from Tranch 2 of this project, having missed out in Tranche 1, and we can assure you that we’ll do everything possible to ensure that we benefit,” he said.
He assured the delegation of the state’s readiness to provide counterpart funding and necessary infrastructure to support 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,” Otti stated.
Earlier, the leader of the AFDB delegation, Mr. Bernard Onzima, explained that the team was in Abia for a pre-appraisal mission to evaluate the state’s preparedness for inclusion in Tranche 2 of the SAPZ Programme.
“Your Excellency, the team from the African Development Bank is here for a pre-appraisal mission for Phase 2 of the Special Agro-Industrial Processing Zones Programme,” Onzima said.
He noted that the SAPZ initiative is designed to tackle downstream agro-processing challenges and de-risk investments in the sector across Africa.
“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,” he disclosed.
According to him, about 27 states have indicated interest in Phase 2, but due to financing limitations, the Bank adopted a multi-tranche approach.
“Because of headroom challenges, the Bank adopted what we call a multi-tranch financing approach, the first batch of 10 states was approved by the Board of Directors in December 2025.
“Now we are considering the next batch of states, what we are calling Tranch 2,” he explained.
Onzima revealed that Tranche 2 would consist of a $200 million financing package from AFDB for eight states, with an expected co-financing of $150 million from the Islamic Development Bank.
“So, the financing package for Tranch 2 will be $200 million from the AFDB for the eight states that we are targeting, and we are expecting a co-financing of another $150 million from the Islamic Development Bank,” he said.
He stressed that states would need to demonstrate readiness in key areas including site suitability, environmental and social safeguards, financial management, procurement systems, and private sector engagement.
“We think that agro-industrial processing zones will be more sustainable when the public sector collaborates with the private sector,” he added.
The delegation visited the proposed agro-industrial hub in Ukwa West and described the site as suitable but noted the need for additional state investment in infrastructure.
“We have had the opportunity to visit this morning the proposed agro-industrial hub at Ukwa West. We know that it’s a very good site, which is unincumbered,” Onzima said.
However, he emphasized the need for the state to co-finance critical infrastructure.
“That package might appear large, but at the end of the day, it’s not a lot of resources. So, we know that the access road is yet to be worked on, plus the power connectivity into the site. I think it will be critical for the state to consider co-financing some elements in addition to the financing that the Bank will be providing,” he noted.
In response, Governor Otti highlighted additional potential sites across the state, including Ukwa East, Bende, Ikwuano, Ulonna farm settlement, and rubber plantations in Abam near Arochukwu.
“There is the one in Ukwa East, Abia Palm, which I think 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, Ikwuano.
“So that if we are considering giving you the entire $200 million, then you can have a justification for it,” the Governor added humorously.
He also used the occasion to appreciate the AFDB for its support on another state project.
“Permit me to also use this opportunity to thank you on the other project you supported us, which is the Abia State Integrated Infrastructure Development Project (ABSID) Just last week, I think we paid a counterpart funding, and hopefully the project will take off any moment from now,” Otti revealed.
Also speaking, the Commissioner for Agriculture, Dr. Cliff Agbaeze, explained why Ukwa West was selected as the initial hub location.
“Your Excellency, you may have wondered why we choose Ukwa West. We choose Ukwa West because of the advantage of the proposed site’s proximity to Abia Innovation and Industrial Park because of the infrastructure that is going to be provided within that space,” he said.
He described the SAPZ initiative as transformative, covering mandate crops, livestock development, and the entire agricultural value chain.
“The facility will cover a number of mandate crops. And then we will go to the livestock part of that program and It promises to do so many things within the agricultural value chain beginning from the planting, to the harvesting, to the storage, to processing, and even export,” Agbaeze explained.
The AFDB delegation included specialists in procurement, environmental and social safeguards, and financial management, as well as representatives from the International Institute of Tropical Agriculture and AfricaRice Centre (AfricaRice), who are supporting technical components of the mission.
With the pre-appraisal mission underway, Abia State’s inclusion in Tranche 2 now depends on meeting the Bank’s readiness criteria.
THE WHISTLER reports that If approved, the SAPZ Programme is expected to significantly boost agro-processing, attract private investment, create jobs, and strengthen export capacity across the state.