Kigali: The National Agricultural Development Fund (NADF) has attributed Africa’s agricultural challenges to low investors’ confidence and the lack of credible institutions necessary to transform available capital into reliable food systems. Mr. Mohammed Ibrahim, the Executive Secretary of NADF, addressed these concerns at the Africa Food Systems Forum (AFSF) held in Rwanda.
According to News Agency of Nigeria, Ibrahim emphasized that Africa possesses a significant pool of resources that could enable its agriculture sector to flourish. However, attracting capital into the sector requires stronger leadership, reliable data, predictable markets, and institutions capable of fulfilling their commitments. Ibrahim noted that building investors’ confidence necessitates an agricultural ecosystem where farmers can be identified, data is reliable, markets are predictable, and institutions are credible enough to mitigate risks and provide investors with greater certainty.
Ibrahim outlined that unlocking large-scale investment demands stronger market linkages, improved access to finance, and an enabling environment that allows farmers and agricultural enterprises to become more productive, profitable, and commercially viable. He highlighted NADF’s focus on ensuring that public resources are strategically deployed to unlock additional private investment, rather than replacing it. Public capital, he stated, should be catalytic, addressing risks and market constraints that deter private investment, thus creating conditions for larger pools of commercial and development finance to enter the sector.
The fund is advancing financing approaches that include blended finance, co-financing, on-lending, and strategic partnerships with banks, insurers, processors, and development partners to mobilize greater investment into agriculture. Ibrahim advised a shift in how the success of public agricultural interventions is measured. Governments should not only consider the amount of money spent but also the additional investment mobilized and the outcomes achieved.
Ibrahim concluded by stating that NADF’s ambition is to help build an agricultural sector that investors, financial institutions, and development partners are increasingly willing and able to finance.