Norway and the United States of America recently announced a joint initiative to support the development of the agricultural sector in Africa, with a financial commitment of $70 million. The objective of this fund is to support small and medium-sized agricultural enterprises, smallholder farmers and job creation in the private sector.
According to Samantha Power, USAID Administrator, and Beathe Tvinnereim, Norwegian Minister for International Development, this initiative aims to fill the financing gap in the agricultural sector in Africa. Indeed, many agri-SMEs in Africa cannot access formal bank financing, creating a financing gap estimated at $100 billion.
This initiative is particularly relevant as the rate of undernourished people in Africa has increased from 270 million to 281 million. It is therefore essential to support the agricultural sector to fight hunger and poverty.
The joint communiqué also highlights the importance of improving trade financing and reducing investment risks in targeted agricultural sectors. This is therefore necessary financial support to help agri-SMEs develop and contribute to Africa’s economy.
This announcement was made during the 78th session of the United Nations General Assembly in New York, underscoring the international commitment to agricultural development in Africa. The two countries hope to reach a total of $200 million with additional contributions from donors.
In conclusion, this joint initiative between Norway and the United States to support the development of the agricultural sector in Africa is an important step in combating hunger and poverty. The establishment of a $70 million fund will help agri-SMEs, small farmers and create jobs in the private sector. It is essential to continue supporting these efforts in order to promote sustainable agricultural development in Africa.