Financing agricultural development in Africa through innovation

The International Finance Corporation (IFC) has been at the forefront of transforming agricultural development in Africa through innovative financing mechanisms. With a commitment to invest and mobilize funds, IFC has pumped $1.2 billion in core agribusiness pursuits over the last two fiscal years. Additionally, a staggering $2 billion has been dedicated to greater agribusiness and food value chain projects, encompassing fertilizers, retail, and collaborations with financial institutions. As of June 2024, IFC's core agriculture portfolio in Africa stands at a commendable $960 million across 68 projects, showcasing a deep-rooted commitment to the agricultural sector in the region. In an exclusive interview with CNBC Africa, Wagner Albuquerque de Almeida, the Global Director for Manufacturing, Agribusiness & Forestry at IFC delved into the challenges and opportunities present in revolutionizing agricultural practices in Africa through innovation and strategic financing. Almeida highlighted the critical need to address issues such as low productivity and vulnerability to climate change, stressing the urgency to accelerate the transformation of the agricultural sector to effectively mitigate food insecurity and enhance productivity. The conversation revolved around the significance of empowering smallholder farmers in Africa, fostering partnerships, leveraging agri-tech solutions, and implementing capacity building initiatives to bolster agricultural development on the continent. Almeida emphasized the pivotal role of partnerships in driving agricultural transformation, underlining the importance of collaborative efforts among investors and stakeholders to expedite progress and share knowledge effectively. He cited the partnership with OCP in establishing an agri-finance platform as a notable example of successful collaboration in advancing agricultural financing frameworks. Moreover, the discussion highlighted the Africa Agriculture Accelerator Program, aiming to support agri-tech companies, enhance productivity, and mitigate risks within the agricultural sector. Almeida shed light on IFC's multifaceted approach to agricultural financing, encompassing debt, equity, insurance, risk management instruments, and local currency investments to cater to the diverse needs of the agricultural ecosystem in Africa. By fostering partnerships, promoting innovation, and leveraging a spectrum of financial instruments, IFC is poised to revolutionize agricultural development and drive sustainable growth across the continent.