Hub | Africa Economic Forum International Development

Overview

The Africa Agriculture Financing Hub is a center that aims to transform Africa’s agricultural sector by facilitating access to finance. The hub was launched in 2023 by the Africa Economic Forum International Development, with the support of other partners. The hub provides technical assistance, training, and funding for agricultural financing initiatives in Africa. The hub also facilitates the sharing of knowledge, experience, and best practices among the African agricultural financing stakeholders. The hub covers four main thematic areas: agricultural investment, risk management, financial literacy, and policy advocacy. The hub has partnered with several African countries and regions, such as Ethiopia, Nigeria, Rwanda, and the West African Agricultural Organization.

What We Do

The Africa Agriculture Financing Hub does the following:

Promote agricultural investment:

The hub promotes agricultural investment, which means that more resources are allocated to the agricultural sector. The hub works with investors, financial institutions, and agribusinesses to develop and implement strategies and instruments that increase the flow of capital to agriculture. The hub also advocates for the creation of an enabling environment for agricultural investment, such as stable macroeconomic conditions, secure property rights, and efficient markets.

Enhance risk management:

The hub enhances risk management, which means that the risks associated with agricultural activities are identified, assessed, and mitigated. The hub works with farmers, insurers, and regulators to develop and implement tools and mechanisms that manage agricultural risks, such as crop insurance, futures contracts, and diversification strategies. The hub also supports the use of technology and data in risk assessment and management, such as remote sensing, big data, and blockchain.

Improve financial literacy:

The hub improves financial literacy, which means that farmers and agribusinesses understand and use financial products and services. The hub works with educators, trainers, and advisors to develop and deliver financial education programs that enhance the knowledge, skills, and attitudes of farmers and agribusinesses towards finance. The hub also supports the development of farmer-friendly financial products and services, such as microcredit, savings accounts, and mobile money.

Advocate for policy:

The hub advocates for policy, which means that policies and regulations that facilitate agricultural financing are enacted and implemented. The hub works with policymakers, researchers, and advocates to develop and promote policies and regulations that improve the access, cost, and terms of agricultural finance. The hub also supports the monitoring and evaluation of policy impacts and the participation of stakeholders in policy processes.

Why We Do It

The Africa Agriculture Financing Hub does it because:

Agricultural financing is essential for agricultural development. Agricultural financing is a critical factor for agricultural development, as it enables farmers and agribusinesses to invest in inputs, technologies, and infrastructures that increase agricultural productivity and profitability. Agricultural financing can help improve food security, rural livelihoods, and environmental sustainability by supporting the adoption of improved crop varieties, sustainable farming practices, and value-added activities. Agricultural financing can also contribute to the achievement of the Sustainable Development Goals, such as ending hunger, reducing poverty, and promoting economic growth.

Africa Agricultural Financing Hub