An urgent call has been made for a more inclusive and responsive agricultural financing system across Africa, aimed at unlocking the continent’s vast agri-food potential. Speaking at the Financing Agri-Food Systems Sustainably Summit (FINAS) 2025 in Nairobi, leaders emphasized the need to restructure how agriculture is funded to address current gaps and harness the full potential of African agriculture.
The current agricultural financing model, while significant in volume, often fails in its structure and distribution. Capital flows tend to bypass smallholder farmers, neglect women producers, and are not tailored to the realities of agricultural cycles and risks. Financing remains overly fragmented, heavily collateralized, and focused on a few high-value chains, leaving out vast numbers of producers who form the backbone of Africa’s food systems.
The emphasis was placed on designing financing systems that are not only larger in volume but smarter in execution. It was argued that Africa needs capital that is inclusive, patient, and committed to long-term transformation. This includes rethinking the purpose, structure, and accessibility of financial resources to better reflect the diversity and seasonality of the agricultural sector.
Proposals included the development of a National Agri-Investment Platform that would bring together public institutions, banks, cooperatives, and agripreneurs into a unified ecosystem. This platform is envisioned as a one-stop shop for farmers, providing access to credit, insurance, savings, and investment opportunities. It aims to be technologically driven, policy-anchored, and responsive to farmers’ actual needs rather than institutional convenience.
The summit also underscored the importance of incorporating indigenous knowledge systems into modern agricultural strategies. These systems, developed over generations, include traditional practices such as seed selection, soil and water conservation, and agroecology. Despite being valuable assets, these approaches are often overlooked in mainstream financing frameworks.
A strong appeal was made for bold and innovative financing models that prioritize people over paperwork. Stakeholders were encouraged to be courageous in testing unorthodox approaches and aligning capital with national and regional development goals. The idea is not just to feed Africa but to transform its agricultural sector into a driver of resilience and economic security.
Additionally, it was stressed that financing should not be treated as a charity but as a strategic investment in the continent’s future. Stakeholders were urged to elevate local voices, especially women and youth, who play vital roles in food production and innovation. These groups are not merely beneficiaries of agricultural initiatives—they are key actors and catalysts for change.
Support for a holistic approach to agricultural financing was echoed throughout the summit. It was highlighted that access to finance is intricately linked with other factors such as climate risk, price volatility, and inadequate infrastructure. To address these challenges, a comprehensive and African-led strategy is needed, one that goes beyond isolated interventions.
Part of this strategy involves enhancing intra-African trade. Many farmers and agribusinesses face hurdles such as high tariffs, complex regulations, and logistical bottlenecks, which hinder cross-border trade and limit market access. The African Continental Free Trade Agreement presents a vital opportunity to overcome these barriers, create a liberalized market for agricultural goods, and stimulate value chain innovation across the continent.
The overall message from the summit was clear: Africa’s agricultural future depends on reimagining finance. By making financing systems more inclusive, locally informed, and forward-looking, the continent can realize its agricultural potential and ensure food security for generations to come.
