African Export-Import Bank (Afreximbank) announced on Monday that it will commit $2 billion to the Export Agriculture for Food Security (ExAFS) initiative.

The funds will be deployed to boost production, processing and Intra-African trade in agricultural products and provide African farmers and agribusinesses with opportunities to access larger markets across the continent. 

ExAFS will help address Africa’s food insecurity issues which include a near 20 percent hunger rate by reducing dependence on other regions for much needed food commodities, while ensuring better sales and returns for Africa’s agricultural value chain stakeholders.

Key elements include:

•    Afreximbank will act as the financier, facilitator and advisor for ExAFS and lead the implementation of partnership activities.
•    Governments of the pilot origin countries of the agricultural produce (Zimbabwe, Malawi and Chad) will play the role of policy enablers and ensure a conducive environment for the ATCs [Agricultural Transformation Centre] 
•    ATC anchor investors (like zone developers, large scale commercial farmers, seed companies, DFIs) will invest in the ATCs and their necessary infrastructure and be the primary purchasers and aggregators in the origin markets.
•    Anchor buyer (like the Government of Egypt) will be the primary export market for agricultural produce.

(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.