African agricultural transition: how to attract financing?

by time news

In Africa, climate ⁣change could⁣ cause agricultural production to⁢ decrease by 18% by 2050, while it would be necessary to triple it to feed a larger population. How can ⁣we combine the efforts of states, researchers, donors and the private sector to enable farmers to continue producing despite uncertainties?

Irrigation, resistant‍ varieties,⁤ cash payments to farmers‍ in the event of a bad harvest… ⁢It is a set of solutions that must⁣ be ​implemented quickly in the face of climate change. But onyl about ten African states dedicate 10%​ of‌ their‍ budget to ⁢agriculture as promised ‌and foreign donors continue ​to neglect it.

Pull in the same direction

« African agriculture receives less than 5% of international public aid, despite being the magic wand for achieving practically all sustainable development goals, complains Augustin⁣ Grandgeorge, who heads the Atlas‍ Initiative, a permanent laboratory on African agricultural transitions⁤ that brings together governments, donors, the private sector and researchers,⁢ and which⁣ hopes to reverse the trend. The question is how to mobilize all these investments, which ⁣priorities we finance, how to‍ all move in⁤ the same direction. Thus, ‌it requires both support and political dialog. »

Support public agricultural banks

Africa’s public agricultural banks have an‍ important role ‍to play in attracting private financing.“ This is what we try to work on⁤ as a public development⁢ agency in ⁢our‌ public ‌policy dialogue with ‍African states​ and in all the work we do with the continent’s agricultural banks, explains Matthieu Le Grix, of the French Development Agency. In⁢ particular we⁤ have undertaken​ a lot of work ⁤with‌ Fida [Fonds international de développement agricole] around a coalition of public agricultural banks to exchange experiences, methods, definition of adequate financial products, and for the most⁤ advanced agricultural ‍banks, such as Crédit Agricole du Maroc, ​to⁤ share their experience⁤ with banks ​that have fewer⁣ human and financial resources innovate. »

Reassure ‍commercial ⁤banks

A subsidiary of Moroccan nitrogen fertilizer ​giant OCP, InnovX is committed to⁢ supporting small-scale farmers in West Africa. This helps convince commercial banks ‌to finance them. “ Our role is to come and show them that this ⁤farmer, this is how we “reduce” him to risks, explains its vice-president Younes Addou. By implementing various solutions ⁤such as access‍ to a market⁢ for​ its production, access to infrastructure so that its production does not ​rot, access to adequate inputs, capable of improving the quality of its soil and therefore productive yields and its resilience. »

To reassure banks, InnovX also offers‍ producers yield insurance that compensates up to ​70% of crop losses.

What ⁤innovative agricultural practices are being implemented in ⁣Africa to combat‌ climate change?

Interview: Combating Climate⁣ Change in African‍ Agriculture with ⁤Augustin Grandgeorge and ⁣Matthieu Le Grix

Q: Thank you for joining us today, Augustin Grandgeorge, head ⁤of the Atlas Initiative, and Matthieu​ Le Grix from the French Advancement Agency. Let’s start with the broader issue: How is ⁢climate change affecting agricultural‌ production in Africa?

Augustin ⁢Grandgeorge: Thank ​you for having⁣ us.Climate change poses a significant threat to ‌African agriculture. Our⁢ studies⁤ indicate that by ‍2050,agricultural production could decrease by as much as 18% as a direct‍ result of climate⁣ change,while at the same time,we’ll need to ‍triple production ‌to feed ‌an ever-growing population. This ‌juxtaposition is alarming and requires urgent action from ‌all sectors.

Q: ‍What must be⁣ done to reconcile these opposing needs?

Matthieu le Grix: It’s essential to implement ⁢a comprehensive ​set of solutions quickly. this includes improving irrigation systems, ​developing more resilient crop varieties, and introducing cash payments to ​farmers during‌ bad harvests. However,‍ the​ current focus on these areas is insufficient; only about ten African​ states allocate 10% of their national budgets to⁢ agriculture, despite international commitments.

Q: Augustin, you mentioned the role⁤ of public‍ policies and support mechanisms. Can ⁢you elaborate on ‍that?

Augustin Grandgeorge: absolutely. ​We ⁤must mobilize investments through political dialog. African agriculture receives less than 5%⁢ of international public aid,‍ which ⁤is‌ concerning as agriculture is critical for achieving nearly all​ enduring development goals.We need to ‍ensure that different stakeholders—governments,‍ private sector, researchers, and ⁣donors—are pulling in the same ⁣direction to ​harmonize their efforts and priorities.

Q: Matthieu,⁢ can you tell us more ⁢about the role of public agricultural ​banks in this ‌context?

Matthieu Le Grix: ​ Public agricultural banks are pivotal in attracting ⁢private financing. Our agency is deeply engaged with ‍these banks in Africa to foster collaboration and knowledge-sharing. ‌We work​ closely with institutions like the international Fund for Agricultural Development (IFAD) to create a coalition​ where best practices are ⁤exchanged, and ‌financial products tailored to farmers’ needs are developed. Such ⁢as, banks like Crédit Agricole du Maroc are⁤ helping less-resourced banks ​innovate through shared experiences.

Q: There’s also a need to ⁣engage commercial banks in ⁤financing agriculture. Younes Addou from InnovX stated that they support small-scale farmers in West Africa.How does ​that ⁢work?

Augustin Grandgeorge: innovx’s approach ​is critical. By demonstrating how risks can be⁤ mitigated, ​they reassure commercial banks about financing smallholder farmers. younes mentioned that ‌this involves ensuring access to markets, ⁣infrastructure to prevent post-harvest losses, and high-quality inputs to ⁤increase‌ both yields and resilience—an⁤ integrated ​approach that⁣ banks‍ can understand ‍and ​support.

Q: What kind of insurance products are being offered to support these farmers?

Matthieu Le grix: To provide additional security for farmers and reassure lending institutions, ⁣companies like InnovX offer ​yield⁤ insurance that ‍can compensate for⁢ losses up to 70%. This risk mitigation ‍strategy is ⁢essential ‍in an era where ⁤climate⁣ unpredictability can⁣ have devastating impacts on harvests.

Q: what practical advice do ⁣you have for‍ stakeholders looking to contribute to the agricultural sector in africa?

Augustin⁢ Grandgeorge: Stakeholders must prioritize collaboration—engaging ⁤in⁣ dialogue,⁢ pooling resources, and sharing knowledge. Investing in agricultural‍ resilience is⁤ not‌ only⁤ about funding but about building inclusive systems that allow farmers⁢ to thrive.

Matthieu Le ⁤Grix: ⁤I would‍ emphasize that stakeholders⁤ should also‍ focus on ​empowering local agricultural banks and ensuring‌ a​ robust‍ infrastructural framework. By ⁣supporting farmers directly and building resilient ‍systems, we can create a‌ sustainable future ‌for ‌agriculture in Africa.

Q: Thank you, Augustin and Matthieu, ⁤for sharing your insights. your ‌perspectives are vital as we look to address ​the challenges faced⁣ by agriculture in Africa due​ to ⁣climate change.

Augustin Grandgeorge and Matthieu ⁢Le Grix: thank you for​ having us. It’s an significant conversation, and we ⁤hope it leads to actionable ‍solutions.

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