FAFINA Receives $1 million To Fund West and Southern African Agri SMEs


Thursday, August 02, 2018     11.51AM / Afdb

By 2030, it is estimated that Africa’s urban food markets will be valued at US$1 trillion.

Despite this potential, the sector substantially lacks financial investment. The share of commercial bank lending to agriculture remains very low, ranging from 3% in Sierra Leone, 4% in Ghana and Kenya, 6% in Uganda, 8% in Mozambique to 12% in Tanzania.

Limited access to finance is a well-known constraint for this sector and the need is even more acute for Agri-SMEs. In an attempt to solve this problem, FAPA donors approved a grant of US$1 million, to assist in the preparation, launch and full implementation of the technical assistance activities linked to the Facility for Agricultural Finance in Africa (FAFINA).

During the pilot phase, FAFINA will concentrate on West & Southern African regions and will invest opportunistically on a Pan–African scale. Transaction sizes of between US $3 million and US $30 million will be the target market to reflect recurring demand from smaller private sector projects. FAFINA’s investment will range from US$1 million to US$10 million (maximum - 50% of total project cost).

To ensure the sustainability of the Agri-SMEs and maximise the development impact, these investment criteria will be used: High transformational impact for integrating value chains and number of jobs created.

“FAFINA intends to catalyse financing to Agri-SMEs in Africa through the use of innovative instruments. It is in full alignment with our Bank’s feed Africa strategy and FAPA’s focus on Agri-SME financing”, said Olivier Eweck, Director of the Syndication, Co-financing and Technical Solutions Department at the Bank, and Chair of the FAPA Technical Committee.


Since January 2018, FAPA donors have approved 8 projects and a cumulative grant amount of US$7.4 million.


Proshare Nigeria Pvt. Ltd.



Related News

1.       The Facility for Agricultural Finance in Africa receives FAPA donors ... Jul 25, 2018

2.      EOI - Consulting Firm for a Market Scoping Study and Facility ... Jul 30, 2017

3.      Recruitment of Consulting Firm for a Market Scoping Study and Facility ...

4.      Advancing African Agribusiness: AFDB Private Sector Financing - FAO Nov 2017

5.      News - Convergence partners with IDH and AfDB to design ...

6.      The Secured Transaction in Movable Assets Act and MSMEs Financing

7.      Getting the Finance to Start a Business in Nigeria

8.     How Lidya’s $6.9m in Series A Investment Round Will Help MSMEs

9.      Standard Chartered and CDC to launch supply chain finance programme to boost Africa and South Asia

10.  FIRE Africa Grants - Submission Of Grants Proposals For 2018 Closes on April 6

11.   Wema Bank Secures $35m from International Lenders to Fund SMEs

12.  Why Your Startup Should Have a Spending Strategy

13.  SMEDAN to commence the Conditional Grant Scheme (CGS) for Micro Enterprises in Nigeria

14.  CBN Revamps N500b Export Stimulation Fund …Repackages P.A.V.E

15.   Takeaways from ASSETS Export Clinic

16.  Project Financing From Commercial Sources – Part 2



Related News