The African Development Bank Group (AfDB) has received a $14 million allocation under the Global Agriculture and Food Security Program (GAFSP)’s new private sector financing window, marking the first funding round under this mechanism. The capital aims to unlock up to $200 million in private investment to strengthen food security and climate resilience across low-income African countries.

The allocation will support the establishment of the Agro-Inputs Risk Sharing Facility, a $200 million blended finance fund hosted by the AfDB. The initiative combines $10 million in de-risking capital and $4 million in technical assistance grants, designed to catalyze commercial lending for agribusinesses, agro-input suppliers, and smallholder-focused enterprises in Ethiopia, Uganda, Tanzania, Malawi, and Zambia.

The Agro-Inputs Risk Sharing Facility, to be implemented by the African Trade & Investment Development Insurance (ATIDI), will provide credit guarantees to local financial institutions, incentivizing them to extend affordable credit to agro-input dealers and early-stage agrifood businesses. This model directly tackles one of Africa’s persistent challenges: the lack of risk capital for smallholder farmers and agribusinesses operating in fragile and climate-vulnerable markets.

By de-risking private investment, the fund is expected to benefit over 1.5 million smallholder farmers and 500 agro-dealers and cooperatives, expanding access to certified seeds, organic fertilizers, soil enhancers, and mechanization solutions. The initiative also supports climate adaptation by helping smallholders withstand heat stress, water scarcity, and volatile weather patterns.

The new funding comes under GAFSP’s Business Investment Financing Track, launched in 2024 as its second-generation private sector window. The track blends donor grants, concessional finance, and multilateral development bank resources to mobilize large-scale private investment in agriculture.

The AfDB’s partnership with GAFSP underscores its growing role in leveraging blended finance to build resilient food systems, advancing access to capital for micro, small, and medium agricultural enterprises across Africa.

With this allocation, GAFSP and the African Development Bank are demonstrating a next-generation model of agricultural financing — one that converts risk into opportunity, aligns donor and private capital, and scales climate-smart productivity to meet the continent’s rising food demand.