The African Development Bank Group (AfDB) has introduced a new Country Strategy Paper (CSP) for Nigeriaaimed at boosting agriculture and enhancing economic growth.
Abdul Kamara, AfDB’s Director General for Nigeria, announced this during a meeting with Finance Minister Wale Edun to deepen collaboration in key sectors.
Key Focus Areas of the Strategy Paper
Kamara emphasized that the new strategy reaffirms AfDB’s commitment to transformative projects in Nigeria, including:
- National Agricultural Growth Scheme (NAGS) – Phase II: Focuses on food security and rural development.
- Special Agro-Industrial Processing Zones (SAPZ): Infrastructure progress is being made in Sokoto, with expansions planned in Cross River and Kaduna States.
- Youth Enterprise Investment Fund: Aims to support youth entrepreneurship, create jobs, and drive economic inclusion.
Government’s Response
Finance Minister Wale Edun praised AfDB’s role in Nigeria’s revitalization, especially in:
- Agriculture
- Infrastructure development
- Youth empowerment
AfDB’s Broader Agricultural Finance Plans
Last week, AfDB President Akinwumi Adesina unveiled plans for a $500 million facility to unlock $10 billion in financing for smallholder farmers and agribusinesses across Africa.
At the Scaling Finance for Smallholder Farmers conference in Nairobi, Adesina highlighted:
- Trade credit guarantees
- Blended finance mechanisms
- First-loss coverage to reduce lending risks
The initiative aims to bridge Africa’s $75 billion annual financing gap for farmers and agribusinesses.
Challenges in Agricultural Financing
Despite these efforts, significant obstacles remain:
- Only 6% of African smallholder farmers have access to credit.
- Less than 20% use improved seeds.
- Financial institutions often see smallholder farmers as high-risk borrowers due to climate variability and insufficient collateral.
AfDB’s Commitment to Agricultural Development
So far, AfDB has:
- Committed $10 billion to agricultural projects.
- Approved 77 projects worth $3.9 billion in 32 African countries.
- Plans to approve an additional $1.72 billion this year.
Adesina, who recently received Kenya’s highest national honor from President William Ruto, called for global actionto unlock Africa’s agricultural potential.
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