"AfDB, Afrexim, others pledge $3 billion to fuel Africa\u2019s agro-industrial growth"

" AfDB, Afrexim, others pledge $3 billion to fuel Africa\u2019s agro-industrial growth \r\nThe African Development Bank Group, Africa Export-Import Bank, Arise Integrated Industrial Platforms, the Islamic Development Bank Group and the United Nations Industrial Development Organization launched at the 2023 Africa Investment Forum Market Days a new alliance to bridge the critical financing gap in agriculture on the continent.\r\n\r\nThe founding members of the private-sector focused Alliance for Special Agro-Industrial Processing Zones (SAPZ) have announced $3 billion in new investment to transform Africa\u2019s underdeveloped rural areas into agro-industrial corridors of prosperity.\r\n\r\nThe new commitments consist of $1.1 billion by the African Development Bank Group, $1 billion by Afreximbank, $300 million by the Islamic Development Bank Group (IsDB) and $600 million from Arise Integrated Industrial Platforms (Arise IIP) and its partners.\r\n\r\nThe Alliance, comprising development financial institutions, the private sector and development-oriented technical partners, will also help streamline the development and delivery of SAPZ projects.\r\n\r\n\u201cThe Alliance will raise funds through various investment windows for project preparation, project development and construction, and financing for tenant companies,\u201d Akinwumi Adesina, President of the African Development Bank Group, said,\r\n\r\n\u201cBy doing so, the Alliance will bridge the critical financing gap, complement existing initiatives, and mobilise resources towards our common goal of enhancing agricultural value addition in Africa,\u201d Adesina added.\r\n\r\nThe Alliance was launched at the 2023 Africa Investment Forum Market Days \u2014 the continent\u2019s premier investment marketplace \u2014 in Marrakech, Morocco.\r\n\r\nDuring the launch session, founding members discussed how the SAPZ model could impact Africa\u2019s agro-industrialisation process.\r\n\r\n\u201cThe beauty of this Alliance is that it brings together a lot of different, diverse players \u2014 is just a start and others will join us,\u201d said Beth Dunford, African Development Bank Vice President for Agriculture, Human and Social Development.\r\n\r\nSpecial Agro-Industrial Processing Zones stimulate structural transformation in agriculture by connecting rural and urban development through the zone\u2019s ecosystem. These zones integrate smallholder farmers into value chains through logistics and infrastructure, linking them to agro-industrial processors and consumer markets.\r\n\r\nBenedict Oramah, President and Chairman of the Board of Directors of Afreximbank, welcomed the emergence of the Alliance and suggested that, to attract the private sector, the creation of continental regulatory bodies that countries could respect should be considered. \u201cProjects of this nature are very visible,\u201d he explained.\r\n\r\nAccording to the Alliance members, meeting this financing goal will deliver an additional 15 to 20 SAPZ projects in various countries across the continent and improve administrative, policy and investment incentives.\r\n\r\n\u201cFinancing alone has never been enough to develop,\u201d said Hani Sonbol, CEO of the International Islamic Trade Finance Corporation and acting CEO of the Islamic Corporation for the Development of the Private Sector, representing IsDB President Muhammad Al Jasser.\r\n\u201cStrengthening food sovereignty in Africa will require us to think differently in terms of investment. We look for self-sufficiency, climate change and adaptation, and how to attract private sector involvement,\u201d he said.\r\n\r\nArise IIP CEO Gagan Gupta underlined the need for infrastructure around the zones that reflects the need of these communities, including housing, transportation, health and extension services. \u201cThese zones rely on the governments for policy frameworks, supporting infrastructure, and training and vocational centres,\u201d he said.\r\n\r\nThe United Nations Industrial Development Organization (UNIDO) brings on its part to the Alliance a wealth of technical assistance knowledge, practical experience, tools and methodologies.\r\n\r\n\u201cWe have a lot of experience in developing, planning and implementing industrial parks and special economic zones,\u201d said Gunther Beger, UNIDO Managing Director of the Directorate for Sustainable Development Goals, Innovation and Economic Transformation.\r\n\r\n\u201cThe Alliance presents a completely new approach to transform Africa\u2019s agro-food system. This is a much-needed partnership of financial institutions, public and private sector players,\u201d he added.\r\n\r\nAcross the continent, the African Development Bank has already committed $853 million to develop more than two dozen Special Agro-Industrial Processing Zones in 11 countries. This investment has attracted $661 million in cofinancing from Bank partners.\r\n\r\nOyebanji Oyelaran-Oyeyinka, Senior Special Advisor to Adesina, concluded: \u201cSAPZ is a tool designed to achieve the twin objectives of structural transformation and rural development through agro-industrialisation.\u201d\r\n\r\nPrior to the panel discussion, Ryad Mezzour, Minister of Industry and Trade, Kingdom of Morocco, called on large private sector companies to become tenants in SAPZ. \u201cYou need a company that can bring the others \u2013 that integrates this area.\u201d\r\n\r\nRwanda\u2019s Minister of State for Treasury, Richard Tusabe, said: \u201cSpecial Agro-Industrial Processing Zones will give us a chance to mass produce the food we need to feed our population. We need to feed our people \u2014 there is no shortcut.\u201d\r\n "

"AfDB, Afrexim, others pledge $3 billion to fuel Africa\u2019s agro-industrial growth"

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