Abidjan: The African Development Bank Group (AfDB) has received a $14 million allocation from the Global Agriculture and Food Security Program (GAFSP) under its new private sector financing window. This funding is intended to unlock $200 million from the private sector to bolster food security initiatives in low-income countries.
According to African Press Organization, this marks the first allocation from GAFSP's new private sector financing window, the Business Investment Financing Track, launched in 2024. This initiative combines grants and concessional finance with multilateral development bank financing to stimulate private sector investment in smallholder farmers, producer groups, agribusinesses, and start-ups.
The funding will be channeled into the Agro-inputs Risk Sharing Facility, which is designed to mitigate risks and enhance finance access for smallholder farmers. Natasha Hayward, Program Manager for GAFSP, highlighted the importance of this collaboration in addressing the financial challenges faced by smallholder farmers. By leveraging GAFSP donor funds with multilateral and commercial finance, the program aims to amplify its impact on food security and resilience against adverse climate conditions.
The initiative aims to expand access to essential agricultural inputs such as certified seeds, organic fertilizers, soil enhancers, and mechanization. This support is expected to benefit over 1.5 million smallholder farmers and 500 agro-dealers and cooperatives, helping them to withstand climate-related challenges like extreme heat and water scarcity.
Philip Boahen, African Development Bank Coordinator of the GAFSP, emphasized the facility's role in strengthening the agricultural value chain, enhancing market access, and building robust food systems capable of enduring environmental pressures. This funding aligns with African initiatives such as the Comprehensive Africa Agriculture Development Programme and the Kampala Declaration, focusing on transforming food systems across the continent.