$3 Billion Special Agro-Industrial Processing Zones (SAPZ) has disclosed in new Investment to remake Africa’s underdeveloped rural areas into Agroindustry aisles of Wealth

By Abdul Rahman Bangura-

Photo Credit: Natural Habitat Adventures

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The coalition was formed by the African Development Bank Group, Afreximbank, Arise Integrated Industrial Platforms, the Islamic Development Bank Group, and the United Nations Industrial Development Organization.

The Alliance, constituting development financial institutions, the private sector, and development-oriented…partners will furthermore support and streamline the development and delivery of SAPZ projects.

According to a statement published on the AfDB website, it shows that the new responsibility consists of $1.1 billion from AfDB Group, $1 billion from Afreximbank, $300 million from the Islamic Development Bank Group, and $600 million from Arise Integrated Industrial Platforms and its partners.

Akinwumi Adesina – AfDB President said in the statement the alliance will increase budgets through different investment windows for project preparation, project development and construction, and financing for tenant companies.

“By doing so, the Alliance will bridge the critical financing gap, complement existing initiatives, and mobilize resources towards our common goal of enhancing agricultural value-addition in Africa,” he spoke out.

The development comes as Malawi’s efforts to change course towards export-oriented industrialization that pertains to the production of mobilized services that are competitive on the global market have
stuttered for almost thirty years on.

This is reflected in the reduction in the number of firms participating in Export Processing Zones (EPZs) from 40 in 1996 to 15 at the end of industrialization due to changes in trade and fiscal policies.

Meanwhile, the Ministry of Trade and Industry in collaboration with the Malawi Investment and Trade Centre has crafted a Special Economic Zones (SEZs) Bill that is anticipated to navigate developments and operations of the SEZs in Malawi.

Malawi has since identified Area 55 in Lilongwe for the development of 55 SEZs in agro and food processing, production of electrical equipment, manufacture of chemicals and plastics, general and light engineering, electronics manufacturing, information and communications technology, and logistics
center.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports,  Africa Correspondent