More than 1.5 million smallholder farmers and 500 cooperatives and agro-input distributors in Ethiopia, Uganda, Tanzania, Malawi, and Zambia are set to benefit directly from a groundbreaking agricultural financing initiative designed to transform productivity and build climate resilience in the region.
The project, launched by the Global Agriculture and Food Security Program (GAFSP), will channel $14 million in risk mitigation capital to unlock up to $200 million in private sector investment. This initiative aims to expand access to certified seeds, organic fertilizers, mechanization, and other essential agricultural inputs, helping small-scale producers adapt to climate extremes, increase yields, and boost their incomes.
“This fund will have a transformative impact in Ethiopia, Uganda, Tanzania, Malawi, and Zambia, strengthening the entire agricultural value chain while promoting economic growth, job creation, and long-term food security,” said Natasha Hayward, Program Manager at GAFSP.
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The allocation will finance the creation of the Agro-Inputs Risk Sharing Facility, a $200 million fund that includes $10 million in de-risking capital and $4 million in technical assistance. The facility will incentivize local banks to lend to small and medium-sized agricultural enterprises and input suppliers, stimulating private investment and ensuring that financing reaches those who grow and sustain the continent’s food supply.
Smallholder farmers and agribusinesses in these countries often face major barriers to accessing credit and insurance due to perceived high risks. The new facility will offer financial guarantees to reduce lenders’ exposure, making it easier for commercial banks to support underserved agricultural ventures while fostering resilience and sustainability across local food systems.
“Each dollar invested through the program mobilizes several more in private capital, multiplying the positive impact on food security, economic resilience, and climate adaptation across these five nations,” added Hayward. “We are planting the seeds of a more food-secure and prosperous Africa.”
The initiative aligns with continental commitments to transform Africa’s food systems, including the Comprehensive Africa Agriculture Development Programme (CAADP) and the Kampala Declaration on Accelerating the Implementation of Africa’s Food Systems Transformation, positioning Ethiopia, Uganda, Tanzania, Malawi, and Zambia as regional leaders in sustainable agricultural innovation.
