NAIROBI, Kenya, Mar 18 – The African Development Bank (AfDB) and the Pan African Farmers Organization (PAFO) have called for entrenched financing for smallholder farmers across the continent aimed at scaling up food production.
The organizations called on African governments to fast-track infrastructure constraints in financing for smallholder farmers that they contend is a major stumbling block.
According to the delegates at the scaling summit, smallholder farmers remain the backbone of Africa’s agricultural economy, contributing 80 percent of the continent’s food production.
However, only 6 percent have access to finance.
They face a staggering $75 billion annual financing gap, exacerbated by challenges such as limited access to credit, inadequate agricultural inputs, and climate change impacts.
Beth Dunford, Vice President of Agriculture, Human, and Social Development at AfDB, emphasized the need for sustainable solutions to these challenges in her opening remarks.
“We gather today in recognition of a fundamental truth;Africa cannot feed itself without its smallholder farmers,” she stated.
“Africa’s smallholder farmers are the foundation of rural economies, yet they face significant obstacles to access finance.”
On his part, PAFO president Ibrahima Coulibaly called on sustained innovation by governments and non-state actors to ensure finance for the smallholder sector.
“We all need more inclusion and innovations, we must create room for new solutions.”
His sentiments were echoed by Equity Bank CEO, who called for renewed focus on addressing challenges such as price volatility as well as post-harvest losses that hinder profitability in the sector.
Despite smallholder farmers’ critical role in food security and economic development, less than 6 percent of them currently have access to credit, and fewer than 20 percent use improved seeds.
The two-day conference seeks to address these challenges by fostering innovation in financing models, such as risk-sharing facilities, blended finance, and the use of digital platforms.
