African Development Bank Secures $14 Million from Global Agriculture and Food Security Program

The African Development Bank Group (AfDB) has received $14 million in the first-ever allocation under the Global Agriculture and Food Security Program’s (GAFSP) new private sector financing window. The funding aims to unlock up to $200 million in private investment to strengthen food security and agricultural resilience across low-income African countries.

The GAFSP provides financial and technical support - including grants, concessional finance, and advisory services - to promote agricultural development in some of the world’s poorest nations. Its new Business Investment Financing Track, launched in 2024, blends GAFSP’s donor resources with financing from multilateral development banks to attract private sector investment in smallholder farming, agribusinesses, and agricultural start-ups.

Under this first allocation, the AfDB will establish an Agro-Inputs Risk Sharing Facility, a $200 million fund anchored by $10 million in de-risking capital and an additional $4 million in technical assistance grants. The facility will catalyse private-sector lending to small- and medium-sized agricultural enterprises in Ethiopia, Uganda, Tanzania, Malawi, and Zambia, helping them access affordable credit and expand operations.

Smallholder farmers and early-stage agrifood businesses in these countries often face limited access to credit, insurance, and investment due to high perceived risks. The Agro-Inputs Risk Sharing Facility, to be implemented by the African Trade & Investment Development Insurance (ATIDI), a pan-African insurer specialising in political risk and credit cover—will address this financing gap by providing loan guarantees to local banks, encouraging them to lend to agribusinesses and input suppliers.

“This first allocation demonstrates the appetite for funders to work together in this new model to solve an age-old challenge of finance for smallholder farmers: risk,” said Natasha Hayward, Program Manager for the Global Agriculture and Food Security Program.

“By blending GAFSP donor funds with multilateral development and commercial finance, every Program dollar will leverage many more in private investment, multiplying the positive impact on food security and resilience to rising temperatures and unpredictable weather patterns.”

The initiative is expected to benefit over 1.5 million smallholder farmers and 500 agro-dealers and cooperatives, expanding access to certified seeds, organic fertilisers, soil enhancers, mechanisation, and other critical inputs. These tools will help African agribusinesses adapt to climate-related challenges such as heatwaves, water scarcity, and erratic rainfall.

“By targeting agro-input dealers and smallholder farmers, this facility intends to strengthen the entire value chain, from input supply to market access, building food systems able to withstand market shocks, including and especially environmental pressures. With the establishment of the Agro-Inputs Risk Sharing Facility, we are planting the seeds of a more food-secure Africa,” said Philip Boahen, African Development Bank Coordinator of the GAFSP.

This landmark funding allocation aligns with Africa’s broader commitments to transform and modernise its food systems, including the Comprehensive Africa Agriculture Development Programme (CAADP) and the Kampala Declaration on Accelerating the Implementation of Africa’s Food Systems Transformation.

By leveraging donor funds to attract private capital, the initiative reflects a growing consensus that sustainable food security in Africa depends on inclusive, climate-smart investment and stronger partnerships between governments, development institutions, and the private sector.