Unlocking diverse sources of funding will be essential for Africa to meet its agrifood transformation goals, according to a report from the Malabo Montpellier Panel. The study warns that fiscal pressures, climate shocks, and declining global aid require African nations to find new ways to finance food system reforms alongside energy, trade, transport, and infrastructure development.
The report, MONEYWISE: Policy Innovations to Finance Africa’s Agrifood Systems, examines investment needs, financing gaps, and policy opportunities. It highlights case studies from Malawi, Morocco, and Rwanda, where targeted reforms and funding models are enabling more inclusive, resilient, and competitive food systems.
The authors estimate that $77 billion annually will be required to transform Africa’s agrifood systems by 2030, with $62 billion from the private sector and $15 billion from public sources. Government spending on agriculture in Africa has grown from $138 billion in 1990 to $449 billion in 2023. However, agriculture’s share of total budgets has fallen by about 55 per cent over the same period.
Dr. Ousmane Badiane, Executive Chairperson of AKADEMIYA2063 and Co-Chair of the Malabo Montpellier Panel: “Bold and innovative financial strategies will be indispensable to the sustainable transformation of Africa’s agrifood systems. This report demonstrates that strategic public policies designed to enable strengthened domestic financial ecosystems, smart investments, and multistakeholder cooperation across borders, can drive inclusive growth, improve food security, and build climate resilience across the continent.”
The report was launched at the 16th Malabo Montpellier Forum, attended by senior government officials, finance leaders, and development partners. It argues that reversing declines in domestic public financing alone will not be enough. Private sector capital and targeted development funding will play a critical role.
Malawi’s National Economic Empowerment Fund offers affordable financial services to women, youth, and people with disabilities, supporting rural economic development through a revolving loan model backed by government seed funding. Morocco’s Agricultural Development Fund leverages public resources to attract private investment in land restoration, irrigation, and agro-processing.
Post-investment subsidies cover most costs for machinery, irrigation systems, and certified seeds, reimbursing farmers after verification. In Rwanda, the Development Bank of Rwanda and the Capital Market Authority have been established to mobilise capital and promote savings through the Rwanda National Investment Trust. Village Savings and Loan Associations have expanded financial inclusion for smallholders.
The Malabo Montpellier Panel outlines a five-point plan based on lessons from the case studies: Incentivise domestic finance through credit guarantees, land tenure reforms, and cooperative strengthening. Raise awareness of innovative funding mechanisms and promote peer learning. Build institutional and technical capacity for large-scale investment planning and management.
Expand digital finance access by addressing infrastructure gaps and improving mobile payment interoperability. Align financing with national agricultural investment plans to integrate food security, climate resilience, and trade priorities. Prof. Joachim von Braun, Co-Chair of the Malabo Montpellier Panel and Director at the Center for Development Research, University of Bonn: “By showcasing success stories from across the continent, this report provides a clear roadmap for African governments and development partners to mobilize the finance in new ways for agrifood system transformation.
The report is relevant for the implementation of the 2025 Kampala Declaration, and it should also revitalize public finance for agrifood systems from development partners, as it shows the big development opportunities.” With the agrifood sector employing around 65 per cent of Africa’s workforce, the panel’s recommendations align with the African Union Kampala CAADP Declaration, which calls for mobilising $100 billion in public and private investment by 2035.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
