Development financing to Africa for food systems
A US$1 TRILLION OPPORTUNITY: UNLOCKING AFRICA’S AGRIFOOD MARKET POTENTIAL
According to the African Union Development Agency-New Partnership for Africa’s Development, transforming agribusiness in Africa depends on reducing trade barriers, improving infrastructure and enhancing competitiveness.
The urban food market alone could reach US$150 billion, with smallholder farmers capturing up to US$30 billion, if adequately supported to scale and to access markets. Women account for 70 per cent of the agricultural workforce, and Africa has the world’s youngest population. Inclusive agribusiness can serve as a powerful driver of economic empowerment, gender equity and youth employment. The African Continental Free Trade Area (AfCFTA) offers a once-in-a-generation opportunity to build resilient, self-reliant African food systems.
KEY FIGURES [2018–2023]
Africa receives the largest share (38–42%) of development finance for food systems, with funding rising +19% (US$18.1B → US$21.5B) between 2018–2023.
~1/4 (23%) of financing in Africa goes to food assistance, highlighting crisis-driven spending.
Funding is highly concentrated: 11 countries received ~50% of total financing, mainly fragile and conflict-affected contexts, while the other ~50% is spread across 44 countries, underscoring the need for domestic resource mobilization and alternative financing.
~40% of bilateral financing goes to social protection, with 98% for emergency food aid.
7 IFIs provide over 60%+ of multilateral financing, primarily supporting structural transformation (Asian Development Bank, African Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, IFAD, Islamic Development Bank and the World Bank).
ODA remains dominant (98% concessional/grants) in bilateral flows, though instruments are evolving.
Multilateral “other official flows” (OOF) more than doubled, reflecting a shift toward market-based and de-risking mechanisms.
Key messages
- While Africa receives the largest share of global food systems financing, funds are highly concentrated in a few crisis-affected countries where support remains largely humanitarian. With funding projected to decline, there is an urgent need to shift toward conflict prevention, resilience, and long-term solutions.
- Across the rest of the continent, financing is thinly spread – highlighting the critical role of domestic resources and alternative capital. The African Continental Free Trade Area offers a key opportunity to align food systems transformation with trade, industrialization, and inclusion agendas.
- Momentum is growing around country-led approaches and innovative financing models that blend public, development, and private capital to support smallholders, women, and local agribusinesses.
- Scaling impact will require rebalancing the financing mix – strengthening domestic investment, expanding public-private partnerships, and leveraging instruments such as blended finance and regional investment platforms to drive sustainable transformation.
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Development Finance for Food Systems in African Countries
Many African countries have made progress in mobilizing domestic resources for food systems transformation. Yet the continent remains the top recipient of external development financing for food systems. Despite growth in external funding amid rising pressures, Africa still lags in mobilizing financing – both domestic and international – at the scale needed for transformation.
This report presents first-of-its-kind evidence of external development financing to African food systems from 2018 to 2023.
