2024-03-04 23:08:02
Food sovereignty, fair remuneration, and even agricultural sustainability are themes at the heart of global and African discussions. If most stakeholders agree on the need to transform agricultural systems, this transition will have a cost. On February 13, the major conference of the Foundation for Agriculture and Rurality in the World (FARM) was held in Paris. On this occasion, consideration was given to how to finance this transformation.
On the ground, the observation is almost unanimous. “ Large structures are impossible to hitregrets Jacqueline Ngbe, mediator who works with many women farmers in Ivory Coast. Structures should be put in place so that these women, many of whom are illiterate, many of whom have left the bans, can have access to these financing structures and that they are supported. »
Jacqueline Ngbe takes the example of the Zoyezlamba cooperative in Teapleu, which she knows. “ It is structured, but it does not have a bank accountshe notes. We need to get closer to the banks, we need to set up small structures in very distant sub-prefectures even if the roads are not yet very good. We need to put banks close to these women and support them. »
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Central activity, but financially unattractive
More than half of the population in sub-Saharan Africa works in the agricultural sector according to the IMF. Agriculture is a source of significant wealth — it represents on average 15% of state GDP. However, the sector attracts little public investment. An activity considered too risky which also puts off traditional banks. To compensate for this, Matthieu Brun, scientific director of Farm evokes different avenues of reflection.
« Agricultural banks have often been transformed or reduced. So, we need to reinvest in this », he introduces. For him, another way to finance this transformation of agriculture can also be through innovation. “ We have a good example today with the Neisha accelerator in East Africa, an agroecological business accelerator », Presents Matthieu Brun. And then there are very practical questions, he emphasizes. “ In fact, financing means managing risk. With climate risk today, it is even more complicated to plan for financing agriculture. So, there are funds that are developing, impact funds, Fida, etc. », continues the researcher. Despite everything, the results are still timid, he concedes: “ All of this must still have concrete effects on the ground to really support farmers. »
Also read: IFAD seeks to put global finance at the service of small farmers
Thinking in an ecosystem
Furthermore, public-private partnership is currently being highlighted. Arise, an agro-industrial group with a strong presence in Africa, believes that transformation requires financing and the creation of a general ecosystem. “ Our goal and role is to develop sustainable industrialization, ensuring that we solve not just the problem of agriculture, but the entire ecosystem by ensuring that as much of the value generated returns to Africa as possible.says Bhavin Vyas is responsible for the group’s environmental, social and governance issues. Our objective is therefore an ecosystem approach in which we invest in roads, we build stores, depots. And we are working to ensure the increase in the production of locally processed agricultural products. »
Other levers, according to specialists, to compensate for the lack of financing: increase the supply of loans at advantageous rates, develop mixed financing projects or even create a public agricultural development bank.
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