The African Development Bank Group, Africa Export-Import Bank, Arise Integrated Industrial Platforms, the Islamic Development Bank Group and the United Nations Industrial Development Organisation launched at the 2023 Africa Investment Forum Market Days a new alliance to bridge the critical financing gap in agriculture on the continent.
The 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’s underdeveloped rural areas into agro-industrial corridors of prosperity.
The 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.
The Alliance, comprising development financial institutions, the private sector and development-oriented technical partners, will also help streamline the development and delivery of SAPZ projects.
“The Alliance will raise funds through various investment windows for project preparation, project development and construction, and financing for tenant companies,” Akinwumi Adesina, President of the African Development Bank Group, said,
“By 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,” Adesina added.
The Alliance was launched at the 2023 Africa Investment Forum Market Days — the continent’s premier investment marketplace — in Marrakech, Morocco.
During the launch session, founding members discussed how the SAPZ model could impact Africa’s agro-industrialisation process.