Part 2 of 9 · Direction of travel
What Has Changed in African Agriculture Finance Since 2023
Four shifts that should change how you approach the market: pledges converted into capital, de-risking with a measurable track record, equity gone scarce, and domestic budgets still the weak link.
Change 1Political commitment has been converted into pledged capital
At the Dakar 2 Feed Africa Summit, thirty-four African heads of state committed to food security and sovereignty through Country Food and Agriculture Delivery Compacts. Development partner commitments rose from an initial US$30 billion to over US$70 billion, with the African Development Bank pledging US$10 billion and approving dozens of projects across more than thirty countries in support of the compacts.
Whether pledges become disbursements is a fair question. But the compacts are the reference document your national programmes are being designed against, and citing your country’s compact priorities in an application is not a bad idea.
Change 2De-risking has moved from theory to measurable practice
Blended finance facilities that pay lenders to serve agri-SMEs have accumulated a track record. Aceli Africa reports that as at the end of 2025 its incentives had supported US$423 million of lending to 4,653 agri-SMEs across Kenya, Rwanda, Tanzania, Uganda and Zambia, businesses that collectively provide market access and jobs for some 2.2 million smallholder farmers and workers.
Two numbers from that programme matter strategically. 96 per cent of the loans were originated by African-domiciled banks rather than international investors — the money increasingly flows through your local bank, not around it. And 88 per cent of partner lenders report increased senior leadership support for agriculture, producing specialist agri teams and tailored products.
Change 3Equity has become scarce and selective
Agritech venture funding across Africa peaked at around US$776 million in 2022 and has fallen sharply since.
TechCabal, AgFunder and Briter Bridges series. Definitions of ‘agritech’ differ between trackers, so treat the direction of travel rather than the absolute values as the signal.
Deal value has concentrated in East Africa, in processing and cold chain logistics rather than farm-gate applications, and in businesses with demonstrated revenue rather than pilots. Plan accordingly: raise on traction, not on vision, and assume the round will take longer and be smaller than the headlines of three years ago suggested.
Change 4Domestic budgets remain the weak link
Only a handful of countries have consistently met the Maputo Declaration target of allocating ten per cent of national budgets to agriculture, and even flagship national schemes are being squeezed. South Africa’s Blended Finance Scheme, for example, needs roughly R1.5 billion a year to meet demand but was allocated R613 million for 2026/27, with parliamentary concern raised about disbursement delays and over-commitment.
