Unlocking new and innovative sources of financing is critical to transforming Africa’s agrifood systems and enabling broader interventions across energy, trade, infrastructure, and transport, amid shrinking global aid, according to a new report.
The MONEYWISE: Policy Innovations to Finance Africa’s Agrifood Systems report, released by the Malabo Montpellier Panel of agriculture and food security experts, explores how strategic financial policies can unlock the continent’s agrifood potential.
It focuses on overcoming financing barriers while providing case studies from Malawi, Morocco, and Rwanda, where progressive reforms and funding models are driving inclusive, resilient, and competitive systems.
The report comes at a time of global decline in overseas development aid, raising concerns over how African countries will finance transformation amid climate shocks and fiscal strain.
Agrifood systems are central to Africa’s development goals—supporting livelihoods, nutrition, employment, and industrialization. While agriculture spending in Africa has grown from $138 billion in 1990 to $449 billion in 2023, agriculture’s share of total public spending has declined by 55%. The continent needs an estimated $77 billion annually by 2030 to transform its agrifood systems—$62 billion from the private sector and $15 billion from public sources.
“Bold and innovative financial strategies will be indispensable,” said Dr. Ousmane Badiane, Executive Chairperson of AKADEMIYA2063 and Co-Chair of the Malabo Montpellier Panel. “This report demonstrates how strategic policies and smart investments can drive inclusive growth and build resilience.”
Launched at the 16th Malabo Montpellier Forum, the report urges African governments to go beyond reversing public spending declines by attracting private sector and development finance.
Case studies highlight successful models:
- Malawi: The National Economic Empowerment Fund (NEEF), a government-funded microfinance institution, supports marginalized populations—especially women and youth—through revolving loans for agricultural commercialization and rural development.
- Morocco: The Agricultural Development Fund uses public funds to attract private investment by offering post-investment subsidies (covering up to 100%) for land restoration, irrigation, and certified seeds.
- Rwanda: The Development Bank of Rwanda and the Rwanda National Investment Trust promote capital mobilization and a culture of savings, while Village Savings and Loan Associations improve financial inclusion for smallholders.
“These success stories provide a roadmap for governments and partners to mobilize finance in new ways,” said Prof. Joachim von Braun, Co-Chair of the Panel. “It’s a timely contribution to implementing the 2025 Kampala Declaration.”
The report outlines a five-point action agenda:
- Unlock domestic finance: Use incentives, smart subsidies, and credit guarantees to reduce investment risk and attract banks, pension funds, and cooperatives into agrifood value chains.
- Promote innovative funding: Raise awareness of new financing tools through research and peer learning.
- Strengthen capacity: Train government institutions and finance bodies to better plan and manage investments.
- Bridge financial inclusion gaps: Expand access to digital finance through mobile platforms and infrastructure improvements.
- Align with rural development: Anchor agrifood financing in well-costed, evidence-based National Agricultural Investment Plans.
With the agrifood sector employing 65% of Africa’s workforce, sustainable investment is essential. The report supports the African Union’s CAADP agenda, which targets mobilizing $100 billion by 2035 for agrifood systems transformation.
