The African Development Bank Group (AfDB) has announced the launch of a new Country Strategy Paper to boost agriculture and enhance economic growth in Nigeria.
A delegation led by Dr. Abdul Kamara, Director General of AfDB’s Nigeria Country Department, recently met with Finance Minister Wale Edun to deepen collaboration in key sectors.
Dr. Kamara announced the launch of a new Country Strategy Paper, reaffirming AfDB’s commitment to transformative projects in Nigeria.
These include the second phase of the National Agricultural Growth Scheme (NAGS), which focuses on food security and rural development.
He also highlighted infrastructure progress in the Special Agro-Industrial Processing Zones (SAPZ), with advancements in Sokoto and planned expansions in Cross River and Kaduna States.
Support for youth entrepreneurship
The AfDB further emphasized its support for youth entrepreneurship through initiatives like the Youth Enterprise Investment Fund, designed to create jobs and drive economic inclusion.
- Minister Edun praised the Bank’s role as a pivotal partner in Nigeria’s revitalization, particularly in agriculture, infrastructure development, and youth empowerment.
- Last week, AfDB President Dr. Akinwumi Adesina unveiled plans for a $500 million facility intended to unlock $10 billion in financing for smallholder farmers and agribusinesses across Africa.
- Speaking at the High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi, Dr. Adesina outlined the Bank’s innovative approach, which includes trade credit guarantees, blended finance mechanisms, and first-loss coverage to close the financing gap for farmers.
- These instruments aim to reduce the high transaction costs of supporting enterprises, with the backing of technical assistance.
The conference, organized in partnership with the Pan African Farmers’ Organization (PAFO), addressed Africa’s critical $75 billion annual financing gap for farmers and agribusinesses.
Adesina, who recently received Kenya’s highest national honor from President William Ruto, called for global action to unlock Africa’s agricultural potential.
What you should know
Since the 2023 Dakar 2 Feed Africa Summit, significant progress has been made. Thirty-four African heads of state committed to advancing food security and sovereignty, with financial pledges from development partners increasing from an initial $30 billion to $72 billion in under a year.
- The African Development Bank alone has committed $10 billion, approving 77 projects worth $3.9 billion in 32 countries, with plans to approve an additional $1.72 billion this year.
- Despite these advancements, significant challenges remain. Only 6% of African smallholder farmers currently have access to credit, and fewer than 20% use improved seeds.
- Financial institutions often perceive smallholder farmers as high-risk borrowers due to climate variability and insufficient collateral.
As a result, bank lending to agriculture is minimal, accounting for less than 5% of total loan portfolios across many African countries, even though agriculture is a major economic driver.
