REVOLUTIONISING AGRICULTURAL FINANCE IN AFRICA: OPPORTUNITIES AND CHALLENGES

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Abstract

Africa needs business models that are capable of bringing affordable, life-changing products and services in order to reduce or even eliminate poverty. These business models through appropriate and responsible funding must, as a matter of necessity, create jobs and lead directly to economic growth in Sub-Saharan Africa (SSA). This study therefore provides a detailed analysis of the different types of major agricultural financial initiatives in Africa relating them to the problems faced by small farmers in the region. We also look at innovative finance schemes that are also making inroads in the continent like patient capital, agriculture pull mechanisms, value chain financing as well as Sovereign wealth funds. We argue that these innovative schemes can make a difference in helping innovative business models that address poverty see the light of day. Thus policies that protects farmers from natural risks like drought and floods, encourage the proliferation of donors, philanthropic organizations as well as the creation of strong linkages and cooperation among all those involved in agricultural value chains are important for the development of Africa’s agriculture.

Keywords: Agriculture, Finance, Innovation, Africa

How to cite this paper: Moyo, B. (2013). Revolutionising agricultural finance in Africa: opportunities and challenges. Corporate Ownership & Control, 11(1-1), 193-212. https://doi.org/10.22495/cocv11i1c1art6