According to the African Development Bank (AfDB), Africa is underperforming on global and regional agricultural markets. To this end, 1,161 agriculture-related projects have been finalized for the equivalent of $18.4 billion by the African Development Bank. By 2022, this sector alone accounted for 23% or $1.9 billion of the African Development Bank’s loans, grants and equity investments. For AfDB President Akinwumi Adesina, agriculture must become Africa’s new oil.
Although Africa has 65% of the world’s uncultivated arable land, the continent is underperforming on global and regional agricultural markets. Moreover, African exports are dominated by primary exports. Multilateral institutions such as the African Development Bank (AfDB) and the World Bank have therefore decided to invest in Africa’s agricultural sector in order to boost the continent’s food and agricultural productivity.
“To feed the world and precisely in a context where we have water availability, face many challenges with climate change, have situations that make it difficult for farmers to adapt to climate change, we need better performance, better resilience to agricultural technology. And if we want to be able to do that, we need to fund and support R and D centers, to develop this kind of technology whether it’s in crops or in the logic of getting better performance whether it’s in fishing”.
Akinwumi Adesina, President of the African Development Bank – Nigeria
AfDB investments in agriculture are mainly implemented through priority infrastructure areas, such as the extension of agricultural and rural infrastructure, including irrigation and water mobilization, rural and agricultural access roads, livestock and fisheries. According to African Development Bank President Akinwumi Adesina, agriculture must become Africa’s new oil.
“In past years, we have invested a total of 400 million euros in agricultural research, including European institutions, and created value”.
Birgit Pickel , Director General for Africa, Ministry for Economic Cooperation – Germany
According to the AfDB, investment pledges have been rising steadily since May 2023, and are expected to reach $72 billion. The main institutions to contribute would be the AfDB ($10 billion), the Islamic Development Bank ($7 billion), Germany ($14.34 billion), the USA ($5 billion), IFAD ($3 billion) and the Netherlands ($450 million). Other donors identified include the European Union, the European Investment Bank, the West African Development Bank, the Arab Bank for Economic Development in Africa, the french development agency, Ireland, Switzerland and the United Kingdom.
“President Adesina launched the Hi5 technologies in 2015, and our question was whether he will be able to follow this up because he comes from an agricultural background and had as his leitmotiv the project to feed Africa, which he put at the center of Africa’s lighting, Africa’s industrialization, Africa’s integration and on improving people’s living conditions. Agriculture can do all this”.
Lindiwe Majele Sibanda, President of the CGIAR Board of Directors – Zimbabwe
To date, 1,161 agriculture-related projects have been finalized for the equivalent of $18.4 billion. In 2022, this sector accounted for 23% or $1.9 billion of its loans, grants, equity investments and approved guarantees. These funds were used to build 1,682 km of roads and supply 2,605 tonnes of agricultural inputs, including fertilizers, seeds and pesticides. Between 2016 and 2025, the “Feed Africa” project will invest $24 billion to transform African agriculture.
