The African Export-Import Bank (Afreximbank) has entered into a framework agreement Initiative with ARISE Integrated Industrial Platforms (ARISE IIP) and the governments of Chad, Malawi, Zimbabwe and Egypt for the Export Agriculture for Food Security (ExAFS) Initiative.
ExAFS is a USD 2 billion initiative that aims to boost production, processing, and intra-African trade in agricultural products, providing African farmers and agribusinesses with opportunities to access larger markets across the continent.
Read more: Government backtracks on immigration and citizen fees hike after public uproar
“The initiative is intended to help address food insecurity in Africa, which includes a near 20 per cent hunger rate, by reducing dependence on other regions for much needed food commodities.” Said the bank in a press release
Key components of the initiative include the establishment of agricultural transformation centers (ATCs) through a public-private partnership model. These ATCs, located in agricultural production zones, will serve as hubs for collecting, sorting, storing, and transporting agricultural produce from farming communities to be processed or distributed. Additionally, they will offer farmers various services, including microfinance, basic social services, cold storage facilities, extension services, and training.
Anchor investors, including zone developers, large-scale commercial farmers, seed companies, and development finance institutions, will invest in ATCs and their infrastructure, serving as primary purchasers and aggregators in origin markets.
Read more: EPRA announces decreased diesel, kerosene prices
The continent is grappling with a food security crisis, influenced by factors such as the war in Ukraine, supply chain shortages, conflict, and drought. Africa’s agricultural sector, which makes up a third of its GDP and employs around 50 percent of its population, is plagued by low productivity and under-investment with the The United States Agency for International Development (USAID) estimating a USD 100 billion gap in unmet demand for financing
Email your news TIPS to editor@thesharpdaily.com
