Kigali: The National Agricultural Development Fund (NADF) has attributed Africa’s agricultural challenges to low investor confidence and weak institutions needed to transform capital into reliable food systems. Mr Mohammed Ibrahim, Executive Secretary of NADF, made this statement at the ongoing Africa Food Systems Forum (AFSF) Summit in Rwanda.
According to News Agency of Nigeria, Ibrahim spoke in a presentation titled ‘Activating Leaders to Unlock Investment in Food Systems’, monitored in Abuja. He emphasized that Africa possesses significant resources to develop its agriculture sector but requires stronger leadership, reliable data, predictable markets, and credible institutions to attract investment.
Ibrahim elaborated that building investor confidence necessitates an agricultural ecosystem where farmers are identifiable, data is reliable, markets are predictable, and institutions are credible enough to mitigate risks and provide investors with greater certainty. Unlocking investment at scale will require stronger market linkages, improved access to finance, and an enabling environment where farmers and agricultural enterprises can become more productive, profitable, and commercially viable.
NADF is increasingly focused on ensuring that public resources are strategically deployed to unlock additional private investment rather than replace it. Public capital should address risks and market constraints that deter private investment, thereby creating conditions for larger pools of commercial and development finance to enter the sector, Ibrahim stated.
He further explained that NADF is advancing financing approaches, including blended finance, co-financing, on-lending, and strategic partnerships with banks, insurers, processors, and development partners. Ibrahim also called for a shift in how the success of public agricultural interventions is measured. Governments should consider not only the amount spent but also the additional investment mobilized and outcomes achieved.
Ibrahim concluded by stating that NADF’s ambition is to help build an agricultural sector that investors, financial institutions, and development partners would increasingly be willing and able to finance.