Norway and the United States of America have jointly committed to supporting the development of the agricultural sector in Africa by disbursing an envelope of 70 million dollars. This initiative aims to support 500 small and medium-sized agricultural businesses, 1.5 million small farmers and create almost 60,000 jobs in the private sector.
The announcement of this fund was made by Samantha Power, USAID Administrator, and Beathe Tvinnereim, Norwegian Minister of International Development, during the 78th session of the United Nations General Assembly which is being held in New York. The two countries plan to reach a total of $200 million for this fund, thanks to additional contributions from donors.
The objective of this support is to strengthen financial institutions in order to improve commercial financing and reduce investment risks in the agricultural sector of targeted countries. Indeed, small and medium-sized agricultural enterprises represent the largest employers in Africa and are a major economic driver. However, the majority of them do not have access to formal bank financing, which creates a significant gap in unmet financing demand.
This initiative takes on its full meaning as Africa is the region experiencing the greatest increase in the number of undernourished people, according to the latest United Nations report on the state of food security and nutrition in the world. world. Hunger remains a major problem in many African countries, and supporting the development of the agricultural sector is essential to combat this scourge.
Through this fund, Norway and the United States of America hope to improve agricultural productivity, strengthen food security and contribute to the creation of sustainable jobs in Africa. This international collaboration demonstrates the importance given to the economic and social development of the African continent.
In conclusion, the joint initiative of Norway and the United States of America to support the development of the agricultural sector in Africa is an encouraging step to combat hunger and promote economic growth. This investment in small and medium-sized agricultural enterprises will help improve food security and create employment opportunities for African populations. It represents an important step towards a more prosperous future for the African continent.