Governor Alex Otti Pledges Co-Financing As African Development Bank Eyes Abia For $200m Agro-Industrial Programme
Abia State Governor, Dr. Alex Otti, OFR, has declared the readiness of his administration to co-finance the establishment of a Special Agro-Industrial Processing Zone (SAPZ) in partnership with the African Development Bank (AfDB), describing the initiative as a strategic step toward transforming the state’s agricultural value chain.
Governor Otti made the commitment while receiving a delegation from the African Development Bank led by its Team Lead, Dr. Bernard Onzima, at Government House, Umuahia.
Assuring the delegation of the state’s preparedness, Governor Otti emphasized that Abia would not only provide counterpart funding but also create a robust enabling environment to guarantee the project’s success.
“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,” the Governor stated.
“The government will sit down with your team, understand what exactly is required of us, and we will not hesitate to handle that.”
The Governor expressed delight that Abia has been considered among the eight states targeted for the second tranche of the AfDB-backed SAPZ programme. He noted that the delegation had already inspected the proposed agro-industrial hub in Ukwa West but revealed that several other viable sites exist across the state.
According to him, beyond Ukwa West, there are investment-ready locations in Ukwa East under the Abia Palm initiative, where an MoU has already been signed with an international company. He further highlighted agricultural assets in Umuahia, Ikwuano, Bende, Ulonna farm settlement, and the rubber plantations in Abam area of Arochukwu, describing them as fertile grounds for agro-industrial expansion.
Governor Otti also used the opportunity to appreciate the AfDB for its support toward the Abia State Integrated Infrastructure Development (ABSID) project, noting that the state had already fulfilled its counterpart funding obligations.
“Just last week, we paid the counterpart funding, and hopefully the project will take off any moment from now. We are happy with our partnership with you and it would not be out of place to deepen it further with the SAPZ project,” he added.
Earlier, AfDB Team Lead, Dr. Bernard Onzima, explained that the delegation was in Abia on a pre-appraisal mission for Phase Two of the Special Agro-Industrial Processing Zones Programme.
He described SAPZ as a flagship initiative of the African Development Bank designed to address downstream agro-processing challenges, de-risk private sector investments, and enhance value addition across member states.
The programme, currently being implemented across several African countries, boasts a portfolio exceeding $1.2 billion. For Tranche Two, the AfDB is committing $200 million for eight selected states, with expected co-financing of $150 million from the Islamic Development Bank.
Dr. Onzima stated that the pre-appraisal mission is assessing states’ readiness in terms of site suitability, environmental and social safeguard compliance, and engagement with the private sector — a key factor for sustainability.
He commended the proposed Ukwa West site, describing it as suitable and unencumbered, and expressed optimism that Abia would meet the co-financing requirements.
Also speaking, the Commissioner for Agriculture, Dr. Cliff Agbaeze, explained that Ukwa West was strategically selected due to its proximity to the Abia Industrial and Innovation Park, which would provide critical infrastructure support to the agro-processing zone.
He disclosed that additional locations in Bende, Ikwuano, and other parts of the state are being considered, noting that the initiative marks only the beginning of broader agricultural industrialization efforts.
Other government officials present at the meeting included 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.
With firm financial commitment and strategic site planning, Abia State appears poised to leverage the AfDB-backed SAPZ programme to unlock agro-ɓ the state.
