AfDB mulls $500 million facility to mobilize financing for smallholder farmers

The African Development Bank (AfDB) President, Dr. Akinwumi Adesina, announced a $500 million facility aimed at unlocking $10 billion in financing for smallholder farmers and agribusinesses.

Speaking at the Scaling Finance for Smallholder Farmers Conference in Nairobi, he emphasized the need for global action to bridge Africa’s $75 billion annual agricultural financing gap. The facility will use trade credit guarantees, blended finance, and technical assistance to reduce transaction costs.

Adesina highlighted progress since the 2023 Dakar 2 Feed Africa Summit, with financial commitments rising to $72 billion. Key AfDB initiatives, including TAAT, AFAWA, and the African Emergency Food Production Facility, are improving farmer access to finance and technology.

Stakeholders, including PAFO and government leaders, stressed the urgency of scaling financial solutions to transform agriculture and ensure food security.