The news blog post highlights a joint initiative by Norway and the United States of America to support the development of the agricultural sector in Africa. The two countries agreed to disburse an envelope of 70 million dollars for the creation of a fund. This will be intended to support small and medium-sized agricultural businesses, small farmers and job creation in the private sector.
This news was announced by USAID Administrator Samantha Power and Beathe Tvinnereim, Norwegian Minister of International Development. The announcement was made on the sidelines of the 78th session of the United Nations General Assembly in New York. The two countries hope to reach a total of $200 million for the fund with additional contributions from donors.
The objective of this initiative is to improve financing and reduce investment risks in the agricultural sectors of targeted African countries. Indeed, agri-SMEs, which represent the continent’s largest economic engine, often encounter difficulties accessing formal bank financing. This creates a major gap in unmet financing demand, estimated at $100 billion.
This initiative is all the more important as Africa saw a sharp increase in the number of undernourished people in 2022, going from 270 to 281 million people. Hunger therefore remains a major problem in many African countries.
The commitment of Norway and the United States to agricultural development in Africa is commendable. By supporting agri-SMEs and smallholder farmers, this initiative will help create jobs, reduce poverty and promote food security in the region.
It is important that other countries and donors join this initiative to reach the goal of $200 million. By working together, we can create significant impact in the African agricultural sector and improve the quality of life of local populations.
This demonstrates once again that international cooperation and strategic investments are essential to solving global problems such as hunger and poverty. Hopefully this initiative inspires other countries to follow suit and help Africa realize its full agricultural potential.