Akinwumi Adesina: AfDB raised $1.5bn to invest in agro-exports in 11 African countries

Akinwumi Adesina, president of the African Development Bank (AfDB), says his institution mobilised $1.5 billion to promote the export of value-added agricultural products in 11 African countries.

Adesina disclosed this at the ongoing 2023 Africa investment forum (AIF) marketplace in Marrakesh, Morocco.

According to the AfDB boss, this was to support the special agro-industrial processing zones (SAPZs) initiative in 11 African countries.

The SAPZ program goal is to increase household incomes, foster job creation in rural agricultural communities, especially for youth and women, and enhance food and nutritional security in Africa.

Adeshina said that Africa’s roadmap to wealth is from the export of value-added agricultural products.

“Africa must end the export of raw agricultural commodities,” Adesina said.

“We must recognize that the fastest way to poverty is via the export of raw commodities, while the highway to wealth is from the export of value-added products.

“That is why the Special Agro-Industrial Processing Zones are important.

“The Special Agro-Industrial Processing Zones provide critical infrastructure to support agro-industrial development in Africa, to unleash the power of the agricultural sector, with the establishment of food processing and manufacturing companies within the zones.”

Adesina said the Islamic Development Bank, International Fund for Agricultural Development, Arab Bank for Economic Development, European Union, and the Korean Export-Import Bank are AfDB’s partners in the financial commitments.

He said AfDB has provided financing of $853 million and mobilised over $661 million from other development partners and co-financiers, bringing the amount raised to $1.5 billion.

“We are also working with the African Union to support the common Africa agro-parks program.

“Our collective effort has mobilised well over $1.5 billion in support of the establishment of 25 Special Agro-Industrial Processing Zones in 11 African countries.”

Adesina explained that to expand SAPZs across Africa and take advantage of the African Continental Free Trade Area (AfCFTA), countries must increase resources, partnerships, and alliances.

“The Alliance has the goal of mobilizing at least USD2 billion, maybe $3 billion, in financing and investment commitments from Alliance members and partners over the next five years.,” Adesina said.

“Meeting this financing goal will deliver an additional 15 to 20 SAPZ projects in various countries across the continent.”

Adesina said funds will be raised through various investment windows by the alliance, for project preparation, project development and construction, and financing for tenant companies.