AFS Forum 2024 Secures Over USD 2 Billion to Drive Africa’s Food Systems Transformation

Africa Food Systems Forum 2024: Driving Financial Investments to Transform Africa’s Food Systems

Kilimokwanza.org Team

Kigali, Rwanda, September 2-6, 2024 – The Africa Food Systems (AFS) Forum 2024 concluded with strong commitments to addressing one of the most critical challenges facing the continent: the need for robust financial investment to transform food systems and ensure long-term sustainability. Hosted under the theme “Innovate, Accelerate, and Scale: Delivering Food Systems Transformation in a Digital and Climate Era,” the event focused on how Africa can finance its agricultural transformation amidst climate threats, food insecurity, and growing demand for food production.

With over 4,900 delegates from 97 countries—including nine Heads of State and Government, 37 ministers, and representatives from global and regional companies—the Forum emphasized financial mobilization as the cornerstone for driving real change in Africa’s food systems. Rwanda’s President Paul Kagame, who hosted the event, urged African leaders to put more focus on financial mechanisms and partnerships that will make food systems transformation feasible and scalable.

Investment: The Engine of Food Systems Transformation

Throughout the four-day summit, it became clear that transforming Africa’s food systems requires not just policy change but a vast influx of financial resources. Africa’s food systems, which are responsible for feeding the continent’s rapidly growing population, need massive investments to modernize and build resilience against climate change.

Key commitments made at the Forum included over USD 2 billion in government-led initiatives aimed at driving investment in key sectors like climate-smart agriculture, food processing, and infrastructure development. This funding is set to fuel Africa’s food systems through private sector partnerships, public funding, and innovative financial instruments designed to attract both domestic and international investors.

The Forum also hosted the Agribusiness Dealroom, which facilitated direct engagement between governments, investors, and agribusinesses. Over 30 SMEs from the agrifood sector, including youth and women entrepreneurs, pitched their ideas directly to more than 60 investors. Collectively, the SMEs sought over USD 70 million in financing to expand their operations, increase productivity, and explore new markets.

“The future of Africa’s food systems lies in financing,” said one of the investors attending the Dealroom. “Without targeted investment in key areas such as technology, sustainable farming practices, and market infrastructure, Africa will continue to struggle with food insecurity and reliance on external food imports.”

Unlocking Capital Through Innovative Financial Models

The AFS Forum 2024 shined a spotlight on the need for blended finance models that combine public funding, private investment, and developmental finance to bridge the vast funding gaps in Africa’s food systems. Blended finance mechanisms allow governments and development partners to de-risk investments, making them more attractive to private investors, particularly in high-risk sectors like agriculture.

Countries like Rwanda, Côte d’Ivoire, and Sierra Leone launched new initiatives during the Forum that use blended finance to attract private investment into sustainable food systems. These models are designed to integrate agriculture into national development frameworks, linking it with other sectors like climate resilience, infrastructure, and digital technology.

“Governments play a crucial role in setting the stage for investment,” said Rwanda’s Minister of Agriculture. “By de-risking agriculture and aligning national priorities with private sector interests, we can unlock much-needed capital to drive our food systems transformation.”

Financial institutions were called upon to step up their role in financing agriculture through long-term, patient capital that meets the unique needs of the sector. The Forum emphasized the importance of creating affordable financial instruments that cater to smallholder farmers, cooperatives, and SMEs—key drivers of food production in Africa. Scaling up access to credit, insurance, and technical support for these groups will be critical in sustaining agricultural productivity and building resilience to external shocks like climate change.

The Forum also recognized the need to increase investments in research and development (R&D). While African governments have been slow to invest in agricultural R&D, the Forum called for increased public and private funding in areas like crop science, soil health, and climate-smart practices. Scaling successful R&D outcomes to millions of farmers will require focused investment, particularly in innovation hubs that can commercialize research outputs for practical use on the ground.

Digital Technology as a Driver for Financial Efficiency

The adoption of digital technologies emerged as a crucial enabler of cost-efficient food systems transformation. Digital solutions not only optimize farming practices but also reduce operational costs, improving the profitability of smallholder farmers and agribusinesses alike. The Forum stressed the importance of investing in digital infrastructure, particularly in rural areas where access to technology remains limited.

Significant investment is needed to expand mobile banking, digital payment systems, and blockchain-based solutions that help farmers access finance, manage supply chains, and engage in trade more effectively. Digital platforms also offer a way for governments and development partners to distribute subsidies and incentives more efficiently, ensuring that resources reach the farmers and communities that need them most.

Several tech companies and financial service providers at the Forum showcased how digital platforms have already revolutionized agribusinesses in Africa, providing access to real-time market data, weather forecasts, and agronomic advice. Expanding these platforms through targeted investments can help millions of smallholders increase productivity and improve their livelihoods.

Climate Finance: A Necessity for Building Resilient Food Systems

One of the most critical financial challenges highlighted at the Forum was the need for climate finance to build more resilient food systems in Africa. As the continent faces increasingly severe climate shocks, including droughts, floods, and temperature extremes, agriculture—the backbone of most African economies—remains highly vulnerable.

The Forum called for increased funding flows into climate adaptation and resilience-building initiatives. With Africa expected to face an annual cost of USD 50 billion in climate change adaptation, current funding levels are far from sufficient. Less than 25% of international climate funds are currently allocated to adaptation efforts, a situation that the Forum described as “unacceptable” for a continent that contributes so little to global greenhouse gas emissions yet suffers disproportionately from its effects.

The Emirates Declaration, which was endorsed by over 40 African nations at COP28, was reaffirmed at the Forum. This declaration focuses on integrating agriculture into national climate policies and increasing investments in sustainable food systems. Countries like Sierra Leone and Zambia committed to scaling up climate-smart agriculture practices through targeted investments in climate finance.

To address the funding gap, the Forum called for more philanthropic-public-private partnerships (PPPPs), which can leverage philanthropic capital to de-risk private investment in climate adaptation projects. With over USD 3.9 billion in philanthropic financing in 2021, these partnerships represent a powerful tool for channelling funds into youth-led climate initiatives and smallholder adaptation programs.

Financing Youth and Women: Economic Inclusion as a Pathway to Growth

Women and youth are not just key stakeholders in Africa’s food systems; they are essential drivers of innovation and productivity. Yet, both groups face significant barriers in accessing finance, land, and markets. The Forum emphasized the need for gender-responsive financial instruments and youth-targeted investment programs that provide affordable financing and technical support.

Recognizing that women make up more than half of Africa’s agricultural workforce, Forum participants committed to reducing the gender productivity gap by providing better access to resources, technologies, and financing. Increasing women’s participation in leadership roles within the agrifood sector was also highlighted as a crucial step in ensuring more inclusive food systems.

Youth entrepreneurship took center stage at the AFS Awards, where the GO GETTAZ agripreneur prizes and Pitch AgriHack awards celebrated young innovators whose businesses are transforming Africa’s agrifood sector. These awards underscored the importance of investing in youth-led businesses and creating opportunities for young entrepreneurs to access finance, scale their businesses, and contribute to food systems transformation.

Boosting Trade to Reduce Africa’s USD 80 Billion Food Import Bill

Intra-African trade, facilitated by the African Continental Free Trade Area (AfCFTA), holds the potential to not only meet Africa’s food demand but also significantly reduce the continent’s staggering USD 60-80 billion annual food import bill. The Forum emphasized the importance of removing non-tariff barriers and scaling up regional trade initiatives to improve food security.

Delegates at the Forum highlighted ongoing efforts between Malawi and Tanzania, and between Zambia and Zimbabwe, to finalize trade agreements that will simplify cross-border trade and reduce bureaucratic delays. These agreements will help smallholders and SMEs access regional markets more easily, allowing them to sell their products beyond national borders.

The Africa Food Systems Forum 2024 concluded with a clear call to action: mobilize financial resources at scale to drive food systems transformation across the continent. The commitments made at the Forum, particularly in the areas of blended finance, digital technology, climate finance, and gender and youth inclusion, reflect Africa’s determination to tackle its food systems challenges head-on.

As delegates prepare for the next phase of implementation, it is clear that financial investment will remain at the heart of Africa’s journey toward building resilient, inclusive, and sustainable food systems capable of feeding the continent’s growing population.