Abidjan: The Global Agriculture and Food Security Program (GAFSP) has announced the first allocation from its new private sector financing window to the African Development Bank Group (www.AfDB.org), providing $14 million in de-risking capital that aims to unlock $200 million from the private sector to enhance food security in low-income countries.
According to African Press Organization, GAFSP provides financial and technical resources—including grants, blended concessional finance, technical assistance, and advisory services—in the world's poorest countries to support projects across the agriculture value chain. The new window, the Business Investment Financing Track, was launched in 2024 as GAFSP's second-generation private sector financing window. It blends the program's grants and concessional finance with financing from multilateral development banks to catalyze private sector financing for smallholder farmers, producer groups, agribusinesses, and start-ups.
Natasha Hayward, Program Manager for the Global Agriculture and Food Security Program, highlighted the collaborative efforts in this new model, emphasizing the role of funders in addressing the financial risks faced by smallholder farmers. By blending GAFSP donor funds with multilateral development and commercial finance, every program dollar is expected to leverage additional private investment, amplifying the positive impact on food security and resilience to climate change.
The financing will enable expanded access to essential agricultural inputs such as certified seeds, organic fertilizers, soil enhancers, and mechanization. These inputs are crucial for helping agribusinesses withstand extreme climates, including heat and water scarcity. More than 1.5 million smallholder farmers and 500 agro-dealers and cooperatives are expected to benefit.
Philip Boahen, African Development Bank Coordinator of the GAFSP, emphasized the importance of targeting agro-input dealers and smallholder farmers to reinforce the entire value chain, from input supply to market access. This initiative aims to build resilient food systems capable of withstanding market shocks and environmental pressures, furthering the goal of a food-secure Africa.
The allocation aligns with Africa's broader commitments to transforming food systems, as outlined in the Comprehensive Africa Agriculture Development Programme and the Kampala Declaration on Accelerating the Implementation of Africa's Food Systems Transformation.