‘Africa’s agric sector faces confidence crisis, not capital’

The African agricultural sector is grappling with a confidence crisis rather than a capital shortage, according to the Executive Secretary of the National Agricultural Development Fund (NADF), Mohammed Ibrahim. At the Africa Food Systems Forum (AFSF) in Kigali, Rwanda, Ibrahim emphasized that while large capital pools exist, attracting them to agriculture requires bolstering leadership, providing reliable data, ensuring predictable markets, and having institutions that can fulfill their commitments.

Ibrahim stressed that the primary obstacle is not a lack of funds, but rather a lack of confidence that would enable capital to move. He added that NADF is shifting its focus to catalyze private investment rather than merely substituting it. The Fund is exploring financing mechanisms such as blended finance, co-financing, on-lending, and partnerships with banks, insurers, processors, and development entities to stimulate greater agriculture investment.

Ibrahim clarified that public capital should tackle risks and market constraints that deter private investment, thereby enabling larger pools of commercial and development finance to enter the sector. He stressed that the impact of public interventions should be measured not just by the amount of government money deployed, but also by the amount of additional investment it unlocks.

Ibrahim reiterated that farmers must remain at the heart of agricultural investment decisions and be viewed as economic actors, not just beneficiaries of government programs. He concluded by emphasizing that unlocking investment on a large scale requires stronger market linkages, improved access to finance, and an enabling environment where farmers and agricultural enterprises can become more productive, profitable, and commercially viable.