Agriculture in Africa is a key sector for economic development and the fight against hunger. However, many challenges hinder its full potential. This is why Norway and the United States of America recently announced a joint investment of $70 million to support the development of the agricultural sector in Africa.
This initiative aims to support 500 small and medium-sized agricultural enterprises (agri-SMEs), 1.5 million small farmers and the creation of nearly 60,000 jobs in the private sector. The objective is to strengthen financial institutions to improve trade financing and reduce investment risks in the agricultural sectors of targeted countries.
Indeed, agri-SMEs play a crucial role as employers and economic drivers in Africa. However, a large majority of them do not have access to formal bank financing, creating an estimated $100 billion gap in unmet financing demand. This financial support will therefore make it possible to fill this gap and stimulate growth in the agricultural sector.
This announcement comes at a critical time, as the number of undernourished people in Africa continues to rise. According to the latest United Nations report, nearly 281 million people, or nearly 20% of the population, suffer from hunger on the continent.
Norway and the United States have also called on other donors to join the effort and bring the fund to a total of $200 million. This is an important partnership that demonstrates the commitment of these countries to promoting food security and sustainable development in Africa.
In conclusion, the investment of $70 million in the development of the agricultural sector in Africa by Norway and the United States is a laudable initiative. This will help support agri-SMEs, smallholder farmers and create jobs in the private sector. Hopefully, other countries and donors will join this effort to further strengthen the agricultural sector in Africa and effectively combat hunger.