The African Development Bank Group (AfDB) is set to roll out a $500 million facility aimed at unlocking $10 billion in financing for smallholder farmers and agribusiness enterprises across Africa.
With only 6% of African smallholder farmers having access to credit and less than 20% using improved seeds, financial institutions often perceive them as high-risk borrowers due to climate variability and lack of collateral.
Bank lending to agriculture remains low, accounting for less than 5% of total loan portfolios in many African nations.
Speaking at the opening session, Dr. Beth Dunford, AfDB's Vice President for Agriculture, Human, and Social Development, stressed the urgency of change. "We must act now to change this reality," she stated.
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PAFO President Ibrahima Coulibaly emphasized the need for bold action to combat hunger and unemployment through agriculture, while Kenya's Agriculture Minister, Senator Mutahi Kagwe, called for prioritizing innovative measures to transform farming into a thriving business.
On Tuesday, financial experts urged governments to create an enabling environment for agricultural lending, reinforcing the need to align financial structures with smallholder farmers' needs.
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