Sterling Bank, Others Seek $300m to Unlock Africa’s Agricultural Value Chain

Sterling Bank and its partners are aiming to secure a $300 million investment pipeline from the upcoming Agriculture Summit Africa (ASA) 2026, as they seek to expand agricultural finance beyond farm production in Africa. The bank's agricultural lending has already reached ₦277 billion, comprising 18% of its total loan book as of April 2026, marking a 30% increase year-on-year.

Sterling Bank's Managing Director/Chief Executive, Mr. Abubakar Suleiman, emphasized that the next step in agricultural finance lies in the sectors of processing, logistics, storage, and other value-addition businesses capable of retaining more value within African economies. Suleiman highlighted that simply increasing agricultural credit alone would not transform the sector; capital must follow the commodity beyond the farm gate.

The bank's experience demonstrates the progress made in agricultural financing. Fifteen years ago, agriculture accounted for less than 1% of Sterling Bank's loan book, but by April 2026, it had grown to ₦277 billion, representing 18% of total lending. During this period, the bank deployed over $500 million to support agricultural output in Nigeria, creating more than one million jobs and adding over one million metric tonnes to national agricultural output.

The bank is now focusing on higher-value exports, as exemplified by cassava, Nigeria's largest agricultural product. Despite being the world's largest producer, Nigeria only accounts for about 2% of the global processed cassava market due to inadequate processing. Sterling Bank's Managing Director, Mr. Suleiman, emphasized that higher farm output can boost agricultural GDP; however, local processing creates a wider economic chain, generating manufacturing activity, jobs, tax revenues, export earnings, and demand for various services.

The federal government, represented by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, acknowledged that Africa possesses approximately two-thirds of the world's remaining uncultivated arable land but still spends over $100 billion annually on food imports. The government aims to make private investments bankable through initiatives like the Special Agro-Industrial Processing Zones (SAPZ) programme, mobilizing $520 million in co-financing from development partners across seven states and the Federal Capital Territory.