African Development Bank Group gets first funds from Global Agriculture and Food Security Program’s new financing window

An estimated 1.5 million smallholder farmers across Africa will benefit from a new facility, which will unlock more than US$200 million

WASHINGTON, DC, UNITED STATES, October 22, 2025 /EINPresswire.com/ -- The Global Agriculture and Food Security Program (GAFSP) announced the first allocation from its new business investment financing window to the African Development Bank. The $14 million allocation from the Global Agriculture and Food Security Program, a World Bank–hosted multilateral financing platform aimed at strengthening global food security in low-income countries, seeks to unlock $200 million in private sector lending by providing de-risking capital.

Launched in 2024 as the Program’s second-generation private sector financing window, the Business Investment Financing Track (BIFT) blends GAFSP grants and concessional finance with financing from multilateral development banks to catalyze private sector financing for smallholder farmers, producer groups, agribusinesses, and start-ups.

The first allocation establishes the Agro Inputs Risk Sharing Facility (ARSF) with a $10 million tranche of derisking capital from BIFT and up to $4 million in grant resources for technical assistance, which will catalyze up to $200 million in private-sector lending for small- and medium-sized agricultural companies in Ethiopia, Uganda, Tanzania, Malawi, and Zambia.

“This first allocation demonstrates the appetite for funders to work together in this new model to solve an age-old challenge of finance for smallholder farmers: risk,” said Natasha Hayward, Program Manager for the Global Agriculture and Food Security Program.

“By blending GAFSP donor funds with multilateral development and commercial finance, every Program dollar will leverage many more in private investment, multiplying the positive impact on food security and resilience to rising temperatures and unpredictable weather patterns.”

Smallholder farmers often struggle to access finance because private investment in agrifood production — particularly in fragile and low-income countries — is seen as high risk and remains limited. As a result, smallholder farmers and other early stage agrifood businesses typically lack access to credit, savings, insurance, and investment capital, constraining their ability to grow and meet rising local and regional food demand.

The Agro Inputs Risk Sharing Facility is designed to address these problems. Administered by the African Trade & Investment Development Insurance, the Facility will provide a portfolio guarantee to participating financial institutions. By sharing the risk, the facility will provide commercial banks with the confidence to lend to agro-input businesses traditionally viewed as otherwise too risky.

The financing will support more than 1.5 million smallholder farmers and 500 intermediary agro-dealers and cooperatives. It will expand access to certified seeds, organic fertilizers, soil enhancers, mechanization, and other inputs that help agribusinesses to withstand environmental pressures, such as extreme and prolonged heat, and water scarcity.

“By targeting agro-input dealers and smallholder farmers, this facility intends to strengthen the entire value chain, from input supply to market access, building food systems able to withstand market shocks, including and especially environmental pressures. With the establishment of the Agro Inputs Risk Sharing Facility, we are planting the seeds of a more food secure Africa,” said Philip Boahen, Lead for Partnerships and Coordination at African Development Bank Group.

This first allocation aligns with Africa’s own commitments to food systems transformation, including with the Comprehensive Africa Agriculture Development Programme — the African Union’s flagship framework for agricultural growth and food security — and the Kampala Declaration on Accelerating the Implementation of Africa’s Food Systems Transformation — adopted by African Heads of State in 2025 at the Extraordinary African Union Summit in Kampala, Uganda.

The Agro Inputs Risk Sharing Facility supports continent-wide strategies to end hunger, reduce poverty, and build resilience to environmental pressures. This first allocation from the BIFT will lay a foundation for a model that will continue to be strengthened and scaled, with future phases expected to incorporate lessons learned and expand into other low-income countries, unlocking further large-scale private investment to advance food security.

Harvey Presence
Marchmont Communications
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