The Board of Directors of the African Development Bank Group has approved $200 million for the first tranche of the Multi-Tranche Financing Facility under Phase II of Nigeria's Special Agro-Industrial Processing Zones (SAPZ) Program.
The approval, made on December 1st, will enable Phase II to provide three tranches to support an additional 27 Nigerian states, while the approved first tranche will cover 10 states.
The objectives of the project are to develop an inclusive agriculture value-chain by providing food processing infrastructure through 10 Agro-Industrial Hubs while mobilizing private sector investments. The project also supports youth and women by providing dedicated training and vocational programs and providing business development services and access to finance for women and youth.
In addition, the project will establish an agricultural infrastructure platform that will enable local farmers, youth enterprises and Micro, Small, Medium-sized enterprises (MSMEs) to gain market access and to use quality agricultural inputs and technical services.
African Development Bank Director General, Nigeria Country Office, Abdul Kamara said: "The Facility ensures continuity and momentum in the SAPZ Program, aligning with Nigeria's aspirations to address rising food demand, high inflation, and accelerate job creation for youth in agriculture and agro-industry. This intervention is timely, strengthening women and youth participation while mobilizing private sector investments".
Globally, the project is expected to attract $1.5 billion in new private sector investments, following more than $600 million in private sector investments mobilized during its preparation. The new investment is expected to generate additional 1,100,000 jobs across the 10 states including 200,000 direct jobs and 900,000 indirect jobs. About 660,000 of these jobs, approximately 60% are expected to benefit youth and a minimum of 50% of the total jobs created are expected to go to women.
Mr. Kazuhiro Numasawa, Division Manager for the Agricultural Finance and Rural Development Department of the African Development Bank noted that there is a wide range of private sector investors ready to join Phase II by leveraging support across 10 States under Tranche 1.
"Several investors are already committed and have begun construction. We look forward to partnerships with private sector players, the Federal Government of Nigeria, and State Governments," Numasawa said.
