CAN FINANCE UNLOCK AFRICA’S FARM POTENTIAL?

BY MERCY NAMFUKWE

FINANCE remains one of the most critical drivers of agribusiness transformation, with access to affordable and sustainable funding determining the ability of farmers and businesses to increase productivity, embrace technology and participate effectively in markets.

For Africa to achieve meaningful agricultural transformation, financing should move beyond supporting primary production and focus on strengthening the entire agricultural ecosystem — from input supply and production to processing, storage, distribution and market access.

When farmers have access to affordable financing, they are able to invest in improved seed varieties, fertilizer, irrigation systems, mechanization, storage facilities and value addition activities. These investments increase productivity, improve product quality and create opportunities for farmers to earn higher incomes.

Economist Kelvin Chisanga, from Zambia, says finance plays a central role in unlocking the potential of agriculture because farmers require capital to move from subsistence production to commercially driven enterprises.

“Finance is at the heart of agribusiness transformation because it enables farmers and agribusinesses to invest in productivity-enhancing technologies, improve value addition and participate in profitable markets. Without affordable finance, many producers remain constrained by low production levels and limited opportunities for growth,” he says.

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Read full article in the August 2026 issue https://www.agricoopnews.com/e-publications

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