A Game-Changing Push for Agro-Industrial Zones
On April 8, 2025, the African Development Bank (AfDB) announced plans to mobilize $2.2billion in support of agro-processing zones across 28 Nigerian states, following the successful first-phase pilot in Kaduna State — which was backed by over $500million raised in 2022.
"We have been able, I would like to say, to mobilize $2.2billion of investment interest to support the second phase across Nigeria"
This bold move aims at boosting food security and employment by placing crop-processing facilities near farming communities, cutting post-harvest loss, and fortifying value chains. Nigeria spent $4.7billion on food imports in 2024, a trend this initiative aims to reverse
Why It Matters for Nigeria—and SEAP
- Agro-Processing Industrialization: Aligns with SEAP's efforts in agribusiness hubs, solar-powered processing, and cold-chain infrastructure.
- Rural-Led Infrastructure: Zones located in rural and peri-urban LGAs echo SEAP's deployment areas for hybrid energy and clean cooking.
- Financing Models: Multi-stakeholder backing—including Arab Bank for Economic Development, Afreximbank, Sahara Farms fintech, and French/U.S. institutions: mirrors SEAP's blended finance approach between DFIs, private equity, and local developers .
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Agro-processing zones aim to create facilities to process agricultural produce closer to farmers, reducing post-harvest losses and strengthening value chains.
SEAP is mobilizing to
- Integrate hybrid energy systems - into processing zones to ensure reliable, cost-effective operations.
- Align investment frameworks - with agro-industrial PPPs backed by DFIs and development partners.
- Host a Virtual Roundtable on August 15, 2025 - to explore PPP structures, tech integration, and co-investment models in agro-processing.