African Farmers Face $80 Billion Annual Funding Shortfall —AfDB

News in brief:

-Africa faces an $80 billion annual agricultural financing deficit, leaving Nigerian farmers without access to affordable credit, quality inputs, and infrastructure, which threatens food security.

-Development partners, including Heifer International, stress the need for inclusive partnerships that support youth, women, and farmer cooperatives to build resilient food systems.

Agriculture remains the backbone of Africa’s economy, employing over two-thirds of the continent’s workforce and producing up to 70% of its food. Yet, Nigerian farmers and their counterparts across Africa continue to face a severe financing gap that threatens not only food security but also long-term economic stability.

According to the African Development Bank (AfDB), agriculture in Africa receives less than 4% of commercial loans, leaving a massive annual funding shortfall of about $80 billion. For millions of smallholder farmers who grow cassava, rice, maize, tomatoes, and other staples, this means limited access to affordable credit, poor infrastructure, and high borrowing costs.

fertilisers

Experts say the consequences are far-reaching. Without proper investment, farmers cannot access quality seeds, fertilisers, storage facilities, or modern equipment. Post-harvest losses remain high, up to 40% in some crops like tomatoes, while climate change and erratic rainfall worsen the risks of farming.

“Farmers need to be seen as business partners, not just beneficiaries,” says Adesuwa Ifedi, Senior Vice President for Africa Programs at Heifer International. “Finance must be structured to share risks fairly, while giving youth and women the chance to prove their innovations.”

New Approaches for Agricultural Development

At the recent African Food Systems Forum in Dakar, stakeholders called for smarter, more inclusive partnerships that put farmers at the centre of decision-making. Heifer International, an NGO working in Nigeria, Uganda, and Kenya, showcased projects where farmer cooperatives and youth-led agribusinesses have successfully attracted private investment while boosting household incomes.

Grants and philanthropic funds, the organisation explained, can be used strategically to attract larger-scale investment, provided they align with local realities. For instance, youth-led agritech solutions in Nigeria are helping cassava farmers access better markets, while cooperative models in Kenya are cutting down post-harvest losses for maize farmers.

Lessons for Nigerian Farmers

Nigeria’s agricultural development depends on bridging this financing gap. With over 38 million smallholder farmers contributing to the national food supply, improving access to finance could mean the difference between dependence on food imports and achieving true food security.

Surita Sandsham, President and CEO of Heifer International, noted: "Africa’s agriculture future will be built with strong partnerships and funding that bring farmers’ ideas to life."

As the continent’s population continues to grow, projected to reach 2.5 billion by 2050, investing in farmers is no longer optional. It is the key to securing affordable food, reducing poverty, and ensuring stability in Nigeria and across Africa.