The African Development Bank (AfDB) (www.AfDB.org) has received $14 million from the Global Agriculture and Food Security Program (GAFSP) to strengthen food security in Africa and enhance access to finance for smallholder farmers. The funding marks the first allocation from GAFSP’s new private sector financing window.
Strengthening Africa’s Sustainable Food Production
The funds will help establish a $200 million Agro-Inputs Risk Sharing Facility hosted by AfDB. This initiative aims to catalyze Africa’s sustainable food production by encouraging local banks to provide loans to agricultural input suppliers in Ethiopia, Uganda, Tanzania, Malawi, and Zambia.
In addition to de-risking capital, GAFSP is providing $4 million in grants for technical assistance, enabling private-sector lenders to extend affordable credit to small and medium-sized agribusinesses. This effort aligns with AfDB’s goal of promoting economic development through AfDB initiatives and empowering local food producers.
Driving Private Sector Investment in Agriculture
Launched in 2024, GAFSP’s Business Investment Financing Track blends concessional finance and donor funds to attract private sector participation. By combining these financial resources, GAFSP aims to unlock up to $200 million in private investments that will help farmers access quality seeds, fertilizers, and farm equipment.
“This allocation reflects a new collaborative model to address the financing challenges of smallholder farmers,” said Natasha Hayward, Program Manager for GAFSP. “Every dollar invested multiplies the positive impact on food security in Africa and helps build resilience against climate shocks.”
Building Resilience and Food Systems
The Agro-Inputs Risk Sharing Facility will be implemented by the African Trade & Investment Development Insurance, which provides credit and political risk insurance across Africa. The initiative is designed to de-risk lending to small agribusinesses and strengthen the agricultural value chain from production to market access.
Philip Boahen, AfDB’s GAFSP Coordinator, emphasized: “By supporting agro-input dealers and smallholder farmers, we’re strengthening the foundation for Africa’s sustainable food production, paving the way for long-term resilience.”
Over 1.5 million farmers, 500 cooperatives, and agro-dealers are expected to benefit, gaining access to certified seeds, organic fertilizers, and mechanization tools that boost productivity in challenging climates.
This move supports African Union goals, including the Comprehensive Africa Agriculture Development Programme and the Kampala Declaration, which call for stronger regional cooperation in food system transformation.
This story was first reported by APO Group. Read the full article here.
