Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), announced a substantial contribution of $1.5 billion at the 2023 Africa Investment Forum (AIF) Market Place in Marrakesh. This financial support is directed towards advancing the export of value-added agricultural products through the Special Agro-Industrial Processing Zones (SAPZs) initiative.
Addressing the audience at the forum themed “Unlocking Africa’s Value Chains,” Adesina stressed the importance of steering away from the export of raw agricultural commodities. He emphasized that the pathway to wealth lies in exporting value-added products rather than raw commodities, which often leads to a fast track to poverty.
The inauguration of the Alliance for Special Agro-Industrial Processing Zones (SAPZs) marked a significant milestone in this endeavor. Adesina highlighted the critical role SAPZs play in providing the necessary infrastructure for agro-industrial development in Africa. Acknowledging the collaborative efforts, he mentioned valued partners such as the Islamic Development Bank, the International Fund for Agricultural Development, the Arab Bank for Economic Development, the European Union, and the Korean Export-Import Bank.
Adesina also noted the ongoing collaboration with the African Union to support the Common Africa Agro-Parks Program. The cumulative effort of these partnerships has resulted in the mobilization of $1.5 billion, earmarked for the establishment of 25 SAPZs in 11 African countries.
To further the growth of SAPZs across the continent and leverage the opportunities presented by the Africa Continental Free Trade Area (AfCFTA), Adesina emphasized the need for countries to enhance their resources, partnerships, and alliances. He expressed enthusiasm about the expanding number of partners joining forces to accelerate the SAPZ initiative across Africa.
The AfDB President outlined the ambitious goals of the Alliance, aiming to mobilize at least two billion dollars in financing and investment commitments from its members and partners over the next five years. Achieving this financial target would result in an additional 15 to 20 SAPZ projects in various countries across the continent. Adesina detailed that the Alliance plans to raise funds through various investment channels, covering project preparation, development, construction, and financing for tenant companies.
Dr. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), offered additional insights during the forum. He emphasized that political instability in Africa poses a significant challenge to securing funding for major projects. Oramah urged the development of a comprehensive project financing framework and proposal for the continent.
Highlighting budgetary constraints as a primary obstacle to financing and implementing projects, Oramah stressed the importance of resource allocation. He called for continental regulations that countries should adhere to, promoting justice for initiatives that are conducive to business growth. Oramah emphasized the necessity of signing constitutional agreements and concessions while supporting products with high profitability.
During the inauguration of the SAPZs, partners collectively pledged an additional commitment of about $3 billion, underscoring the growing support for initiatives aimed at transforming Africa’s agricultural landscape and boosting economic development. The combined efforts of financial institutions, development organizations, and governmental bodies signal a collaborative commitment to unlocking the potential of Africa’s agro-industrial sector.
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