The Africa Food Systems Forum in Kigali is focusing on ways to channel more investment into small and growing agricultural businesses across the continent.
The forum is also examining measures to ensure that billions of dollars being mobilised for agricultural development reach local agri-businesses, particularly small and medium-sized enterprises that play key roles in Africa’s food systems.
Participants at the forum say “the challenge is no longer only about raising finance but also about strengthening links between policymakers, investors and businesses seeking to expand.”
The Deputy Executive Director and Head of the Directorate for Green Growth Implementation at the Global Green Growth Institute, Dr Mallé Fofana identified some of the barriers preventing international capital from reaching local agricultural enterprises.
Fofana said; “strengthening business models, improving financial management and helping early-stage agri-businesses become investment-ready could make them more attractive to commercial lenders.”
The forum is also considering blended finance as a way of reducing investment risks.
The approach combines public or development funding with private capital to encourage commercial banks to increase financing for the agricultural sector.
With agriculture central to food security and economic growth in Africa, participants say improved access to finance remains critical to the sector’s development.
African News
