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Background
SAPZ is a program designed by the Federal Ministry of Agriculture and Food Security (FMAFS) in close collaboration with the Africa Development Bank, (AfDB) the International Fund for Agricultural Development (IFAD), the Islamic Development Bank (IsDB).
The Nigeria Special Agro-Industrial Processing Zones (SAPZ) Project is a government enabled and private sector led effort that seeks to mobilize private sector investment into the selected zones.
The SAPZ Program was launched in Nigeria on 24th October 2022, with Kaduna State being among seven (7) other states: Cross Rivers, Imo, Kano, Kwara, Ogun, Oyo and the Federal Capital Territory (FCT) where Phase I of the project will be implemented.
Program Goal and Development Objectives:
The program’s development objective is to support inclusive and sustainable agro-industrial development. The SAPZ Program goal is to increase household income, foster job creation in rural agricultural communities, especially for youths and women and enhance food and nutritional security in Nigeria.
SAPZs are integrated development initiatives designed to concentrate agro-processing activities within areas of high agricultural potential to boost productivity, integrate production, processing and marketing of selected commodities. It will enable agricultural producers, processors and aggregators as well as distributors to operate in the same vicinity to reduce transaction costs and share business development services for increased productivity and competitiveness.
In Kaduna State, the selected crops of comparative advantage for value chains addition are Maize, Ginger, Tomato and Soya beans.
The programme will cover all the LGAs of Kaduna State that are located around the Agricultural Transformation Centre (ATC) and the Agro-Industrial Hub (AIPH), located in Dusten-Wai Kubau LGA and Daki-Takwas, along the Kaduna-Abuja Road, Chikun LGA.
Key Features
Infrastructure Development
This involves the development of necessary infrastructure such as roads, power supply, water, and processing facilities. This helps overcome challenges associated with inadequate infrastructure in rural areas.
Clusters of Agribusinesses
The program adopts a cluster approach, bringing together various agricultural value chain actors in one location. This includes farmers, processors, input suppliers, and other stakeholders, creating synergies and fostering collaboration.
Access to Finance
The SAPZ initiative aims to improve access to finance for agribusinesses operating in Kaduna State. This involves collaboration with financial institutions and the establishment of funding mechanisms to support agricultural enterprises.
Technology Transfer
Through technology transfer, the initiative provides a platform for the transfer of modern agricultural technologies and best practices to farmers and processors, enhancing productivity and product quality.
Job Creation
By creating jobs in the state, this is expected to have a positive impact on rural development by creating employment opportunities, reducing poverty, and promoting inclusive growth.
Market Linkages
The zones facilitate market linkages for agricultural products, ensuring that farmers in Kaduna State have a reliable market for their produce. Helping to reduce post-harvest losses and improve the income of farmers.
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