The President of the African Development Bank Group, Akinwumi Adesina, has announced plans to launch a $500 million facility aimed at unlocking $10 billion in financing for smallholder farmers and small agribusiness enterprises across Africa.
Speaking at the High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi, Adesina shared that the bank’s management is currently consulting with its Board of Directors to establish the facility.
This innovative facility will use a range of financial instruments, including trade credit guarantees, first-loss coverage, blended finance mechanisms, and origination incentives, all designed to reduce the high transaction costs of serving these enterprises. It will also be complemented by technical assistance to ensure effective support.
“We are on the brink of making history by pushing the boundaries of innovation and forming extensive collaborative partnerships to address the financing gap faced by smallholder farmers and agribusinesses,” Adesina stated in his keynote address.
The conference, organized in collaboration with the Pan African Farmers’ Organization (PAFO), aimed to tackle Africa’s critical $75 billion annual financing gap for farmers and agricultural enterprises.
Adesina, who was recently awarded Kenya’s highest national honor by President William Ruto, called for global action, urging: “Together, let us unleash the potential of agriculture in Africa. Let us make Africa the breadbasket of the world, and let us feed Africa with pride!”
He also highlighted significant progress since the 2023 Dakar 2 Feed Africa Summit, where 34 African heads of state committed to advancing food security and sovereignty across the continent.
