The African Development Bank (AfDB) has strengthened its commitment to Africa’s agricultural transformation with the expansion of the Alliance for Special Agro-Industrial Processing Zones (SAPZ).
The OPEC Fund for International Development (OPEC Fund) and the Trade and Development Bank Group (TDB Group) have officially joined the Alliance, a move expected to accelerate agro-industrialisation across the continent.
The expansion of the Alliance demonstrates the AfDB’s dedication to mobilizing multi-partner investments and technical expertise to drive Africa’s agricultural value-chain development. Since its launch at the 2023 Africa Investment Forum in Marrakech, Morocco, the Alliance has served as a platform for public, private, and development partners to collaborate on large-scale agro-industrial projects.
Strengthening Africa’s Agro-Industrial Framework
The inclusion of the OPEC Fund and TDB Group builds on the strong foundation established by existing members, which include the Islamic Development Bank Group, Arise Integrated Industrial Platforms, African Export-Import Bank, the United Nations Industrial Development Organization, the Arab Bank for Economic Development in Africa, the West African Development Bank, and the ECOWAS Bank for Investment and Development.
Together, these institutions aim to close Africa’s agricultural investment gap through the creation and development of Special Agro-Industrial Processing Zones. SAPZ are designed to enhance competitiveness, reduce investor risks, and attract sustained private capital. They provide structured infrastructure, targeted incentives, and integrated value-chain linkages that transform primary commodity production into high-value agro-industrial outputs.
Dr. Sidi Ould Tah, President of the African Development Bank Group, emphasized the importance of the expanded partnership.
“The Alliance will intensify efforts to mobilize co-financiers to accelerate SAPZ implementation across Africa. This work directly advances the Bank’s Four Cardinal Points: Unlocking Africa’s capital through blended finance; Strengthening food systems and value addition; Turning demographics into a dividend by prioritizing youth and women; and Delivering integrated, resilient infrastructure.”
Dr. Sidi Ould Tah
Driving Rural Industrialisation and Job Creation
Special Agro-Industrial Processing Zones bridge rural and urban economies by linking smallholder farmers to processing facilities and consumer markets. This strategy ensures that farmers are integrated into structured value chains, enhancing productivity and income while reducing reliance on raw commodity exports.
The SAPZ model also encourages rural industrialisation, generating employment opportunities in both agriculture and processing sectors. By fostering job creation, particularly for youth and women, the initiative contributes to broader socioeconomic development while enhancing food security.
TDB Group President and Managing Director Admassu Tadesse highlighted the role of the Alliance in creating scalable bankable agro-industrial opportunities. He expressed confidence in the new partnership, noting that collaboration with existing members would accelerate investment and implementation across the continent.
Aligning Strategies for Food Security
Abdulhamid Alkhalifa, President of the OPEC Fund, described the partnership as a strategic opportunity to align the Fund’s Food Security Action Plan with the objectives of the Alliance. He noted that joint efforts would enhance sustainable agricultural development, strengthen value chains, and promote agro-industrial growth across Africa.
The Alliance will leverage blended finance and catalytic capital to support SAPZ development. This includes project preparation, risk-mitigation tools, and structured financing mechanisms that reduce investor risks. The combination of public and private sector involvement ensures that these zones attract long-term investment while promoting sustainable development goals.
Significant Investments and Future Plans
To date, the African Development Bank has committed approximately $934 million to develop over two dozen SAPZ in 11 countries. These investments have successfully mobilized an additional $938 million in co-financing from partners. With the addition of the OPEC Fund and TDB Group, the Alliance is poised to expand further, implementing the next generation of SAPZ across Africa.
Governments, anchor investors, SMEs, farmers’ organizations, and technical partners are encouraged to seize the opportunities created by this strengthened Alliance. By pooling resources, knowledge, and expertise, the initiative aims to transform Africa’s agricultural sector into a globally competitive agro-industrial powerhouse.
Transforming Africa’s Agricultural Landscape
The expansion of the Alliance for Special Agro-Industrial Processing Zones marks a milestone in Africa’s pursuit of agricultural transformation. By integrating finance, technical know-how, and private sector participation, the AfDB and its partners are reshaping the continent’s agricultural landscape.
The collaboration of multiple institutions, including the OPEC Fund and TDB Group, underscores the importance of strategic partnerships in achieving sustainable development. With SAPZ as a model for value addition, rural industrialisation, and job creation, Africa is taking a decisive step toward food security, economic diversification, and long-term prosperity.
As the Alliance rolls out the next generation of SAPZ, the continent can expect accelerated agro-industrialisation, increased investment, and a stronger linkage between farmers, processing facilities, and markets. This initiative positions Africa to shift from primary commodity exports to value-added agricultural production, ensuring sustainable growth for generations to come.
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