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Africa boosts agricultural financing to strengthen food security

It was during a meeting of Agriculture Ministers from several countries across the continent that the urgent need to expand financial coverage for the agricultural sector in Africa was addressed.

Africanian
March 19, 2025
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Africa boosts agricultural financing to strengthen food security
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During the Conference on Scaling Up Financing for Smallholder Farmers in Africa, held in Nairobi on March 17-18, 2025, agriculture ministers from various African countries emphasized the need to increase financing for small farmers through targeted subsidies, irrigation projects, and infrastructure development. Mutahi Kagwe, Kenya’s Cabinet Secretary for Agricultural and Livestock Development, stressed that the focus should be on subsidizing production rather than consumption, as this approach maximizes agricultural yield. He also highlighted the importance of interventions such as seed and fertilizer subsidies, as well as soil analysis, to boost productivity.

Los expertos financieros sugieren aumentar los préstamos para los agricultores africanos.

Mandla Tshawuka, Minister of Agriculture of Eswatini, underscored the positive impact of subsidies on food production and food security. In Eswatini, the government covers 50% of agricultural input costs while farmers contribute the remaining share, significantly improving maize and bean production. He also expressed gratitude to the African Development Bank for supporting the construction of a dam that provides irrigation to 10,000 hectares, strengthening resilience to climate change.

In Nigeria, Agriculture and Food Security Minister Abubakar Kyari emphasized the importance of investing in infrastructure, such as building dams, to ensure a smooth transition from production to consumption. He highlighted the Special Agro-Industrial Processing Zones (SAPZ) program, funded by the African Development Bank, which promotes agricultural transformation by developing value chains for key crops and livestock, thereby improving access to markets, financing, and technology.

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Meanwhile, Sierra Leone’s Agriculture Minister, Dr. Musa Kpaka, presented the “matching grant lines” approach to facilitate credit access for small farmers. Under this model, producers receive grants in the form of agricultural equipment, provided they contribute at least 30% of the investment, either in cash or in kind. This strategy has enabled farmers to access modern technology and enhance their production capacity.

Guismala Hamza, Minister of Agriculture and Rural Development of the Central African Republic, highlighted the importance of formalizing small farmers into cooperatives to improve access to financing. These cooperatives develop business plans that enable them to secure funds from credit institutions and government grants. One successful example is the funding approved in 2022 by the African Development Bank, aimed at boosting food production by 32,000 tons and ensuring food security for 100,000 people.

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