Panelists identified several critical barriers to adequate financing. (Image source: AfDB)

Speaking at a two-day conference, leading global and financial experts underscored the crucial role of government intervention in creating an enabling environment for financial institutions to expand agricultural lending

The conference represents a pivotal step in mobilising the billions needed annually to support Africa’s smallholder farmers, who make up some 80% of the continent’s farming population but control less than 5% of agricultural land. African Development Bank (AfDB) Group president Dr Akinwumi Adesina delivered the keynote address, highlighting a glaring disconnect: while agriculture contributes 30% to Africa’s GDP, it accounts for only 6% of commercial bank lending.

A key highlight of the session was a panel discussion featuring Alice Albright, former CEO of the Millennium Challenge Corporation (MCC); Brian Milder, founder and CEO of Aceli Africa; and Jules Ngankam, group CEO of the African Guarantee Fund. Moderated by former international broadcaster, Yvonne Ndege, the panel explored practical designs for sustainable financing mechanisms to bridge the financing gap in agriculture. 

Panelists identified several critical barriers to adequate financing. These include risk misperceptions in agricultural lending, high transaction costs for rural financial services, mismatches between standard loan products and agricultural business cycles, lack of formal financial records and collateral, and inequitable value chain structures that limit farmer profitability. A number of critical barriers were highlighted by the panelists including, risk misperceptions in agricultural lending, high transaction costs for rural financial services, mismatches between standard loan products and agricultural business cycles, lack of formal financial records and collateral, and inequitable value chain structures that limit farmer profitability.

Moreover, several strategic recommendations were proposed by them. These included tailoring financial approaches separately for working capital and infrastructure investment, developing risk-sharing mechanisms to attract greater participation from commercial banks, and strengthening digital financial infrastructure to lower transaction costs. They also emphasised the need for targeted subsidies to stimulate private capital investment and called for enhanced market access to help farmers capture more value from agricultural production.

Initiatives like Namibia’s entry into the AfCFTA are crucial as they pave the way towards a future where hunger is eradicated across the continent. (Image source: Adobe Stock)

As the African Continental Free Trade Agreement (AfCFTA) opens up new trade corridors, Namibia continues to expand its outreach to West and Central African nations, creating alternative revenue streams for farmers

As these trade corridors open up, Namibia is creating alternative revenue streams for farmers by expanding its outreach to West and Central African nations. Investments in value-added processing for crops like grapes and dates are gaining momentum, ensuring that Namibian agricultural products can meet the quality standards required in diverse markets across the continent.

As the African Council commit to the UN Sustainable Development Goal 2: Zero Hunger by 2030, initiatives like Namibia’s entry into the AfCFTA are crucial as they pave the way towards a future where hunger is eradicated across the continent. Its ripple effect can also be felt in the broader Southern African Development Community (SADC) region. The AfCFTA presents a significant opportunity for South Africa to diversify its export markets within Africa, ensuring continued economic growth and stability.

Looking ahead at the upcoming Market Access Africa 2025 that is scheduled to take place from 1-4 June in Durban, South Africa, Namibia'sx progress serves as an inspiring example. Bringing together over 800 participants, more than 40 speakers, and over 50 exhibitors from more than 40 countries, this event will provide a platform to explore these opportunities, address challenges, as well as discuss Africa’s evolving agricultural trade landscape.

Governor Kefas has urged stakeholders to harness the momentum of the ACReSAL project. (Image source: ACReSAL)

The Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Day celebration, held in the state capital, marked a major milestone in the state’s journey towards climate-resilient agriculture, as Governor Dr Agbu Kefas launched three groundbreaking initiatives under the ACReSAL project

At the heart of the celebration were three critical initiatives designed to empower Taraba farmers and promote climate-smart agriculture. The first two initiative involves the distribution of climate-smart farm inputs and tractors, which will enable farmers to enhance production and build resilience against climate change. The third initiative focuses on the presentation of Community Resolving Funds (CRF) to dedicated farmers and community leaders.

Governor Kefas expressed his gratitude to the World Bank and the Federal Project Management team for their dedication, expertise, and robust support, while reiterating the state’s vision for a future where sustainable agriculture fuels economic growth, every farmer has the opportunity to prosper, and innovative practices become the norm. 

Dr Joy Iganya Agene, task team leader of the ACReSAL project and senior environmental specialist, expressed her delight at the significant progress made by Taraba State in the ACReSAL project. This progress has propelled the state to stage two of project implementation. She urged beneficiaries to utilise the proceeds from the Community Revolving Funds (CRF) disbursement for climate-smart activities. Dr Agene also encouraged communities to harness their abundant natural resources to combat the challenges posed by climate change.

As Taraba State deepens its collaboration with the World Bank, Governor Kefas has urged stakeholders to harness the momentum of the ACReSAL project, which is a key initiative among the various proactive steps taken by the state government to address environmental issues. 

To avert a major crisis in Somalia, the WFP is calling for urgent funding to mitigate the impacts of the expected drought. (Image source: Adobe Stock)

Alarming new data shows that worsening drought conditions, conflict and high food prices are likely to push one million more people into food insecurity in Somalia

According to the latest Integrated Food Security Phase Classification (IPC) analysis, 3.4 million people are already experiencing crisis-levels of hunger, with the number expected to rise 4.4 million between April and June this year. Moreover, around 1.7 million children under the age of five are expected to face acute malnutrition through December 2025, due to below-average rainfall forecast for this period. 

Among those hardest hit are households with low agricultural yields who have depleted their food stocks, internally displaced persons (IDPs), and pastoralists with limited livestock and below-average earnings from livestock sales.

A drastic increase in humanitarian needs and subsequent shortfall in fundings is forcing the WFP to cut-short food and cash assistance as well as some life-saving programmes such as school meal arrangements for students. With a funding gap of US$297mn and no additional funding  expected in the next six months, WFP operations in Somalia are threatened by pipeline breaks by mid-year. 

To avert a major crisis in Somalia, the WFP is calling for urgent funding to scale up food assistance, nutrition support, water and sanitation services, as well as livelihood initiatives to mitigate the impacts of the expected drought.