Sunday, June 16, 2024
14.6 C

African Agricultural Businesses Receive $70 Million Boost

In an effort to combat hunger and support farmers in Africa, the United States and Norway have collectively pledged $70 million to launch a fund.

This fund, which is being reported for the first time, aims to provide assistance to agricultural businesses and farmers in the region, according to a spokesperson from the U.S. Agency for International Development.

African Agricultural Businesses Receive $70 Million Boost
African Agricultural Businesses Receive $70 Million Boost.

The announcement of this initiative was made by USAID Administrator Samantha Power and Norwegian Minister of International Development Beathe Tvinnereim during the U.N. General Assembly. The timing of this announcement is crucial, as countries like Russia and China are also vying for the support and favor of developing countries in Africa.

The fund has ambitious goals and aims to reach a total of $200 million through additional contributions from various donors. It has the potential to benefit nearly 7.5 million people who have been affected by the worsening hunger crisis in Africa. By committing an initial $35 million each, both USAID and Norway are paving the way for the fund to support 500 small- and medium-sized agricultural businesses, 1.5 million smallholder farmers, and create nearly 60,000 private sector jobs.

One of the key objectives of this fund is to attract commercial financing by reducing the investment risk associated with agricultural businesses in Africa. It is hoped that this will encourage other private sector investors to contribute, resulting in hundreds of millions of dollars in additional financing for the agricultural sector.

African Agricultural Businesses Receive $70 Million Boost
African Agricultural Businesses Receive $70 Million Boost.

Africa has been grappling with severe hunger and food insecurity, exacerbated by armed conflict and extreme weather events that experts have linked to climate change driven by the use of fossil fuels. While some progress has been made in averting famine in parts of the Horn of Africa, the region still faces significant challenges. Approximately 60 million people in seven east African countries are still food insecure.

Furthermore, in West Africa, millions of people have faced food insecurity due to climate shocks, the impact of the COVID-19 pandemic, and high food prices. The fund’s initiative comes at a crucial time when support and investment in the agricultural sector are urgently needed to address these pressing challenges.

By providing financial assistance and reducing investment risk, this fund has the potential to create a positive domino effect in the agricultural sector in Africa. With additional contributions from donors, it is expected that the fund will greatly impact the lives of millions of people by improving food security, creating job opportunities, and supporting agricultural businesses. It is an encouraging step towards alleviating hunger and poverty in the region.

However, the success of this initiative will depend on continued support and commitment from both the public and private sectors. It is imperative that governments, organizations, and investors work collaboratively to ensure the fund’s objectives are met and that sustainable agricultural practices are implemented. As Africa continues to face the challenges of climate change and food insecurity, the importance of investing in agricultural businesses cannot be overstated.

Discover more from Who Owns Africa

Subscribe to get the latest posts to your email.

Hot this week

Meet Uganda’s Hamis Kiggundu who’s richer than Ronaldo and Messi

Meet Ugandan entrepreneur Hamis Kiggundu with a net worth...

Scent of Africa unveils exquisite new fragrances Fik and Gleti

Scent of Africa, a leading fragrance house, has unveiled...

Meet the most stingy woman in history, with a net worth of $2.3 billion

Hetty Green, an American woman born in 1835, is...

Red Sea ship attacks increase crude oil supply by 47% in Africa

The recent surge in ship attacks in the Red...

How Hofmann left her white boyfriend for a Samburu warrior

In the 1980s, a love story unfolded in Kenya...


South Africa’s Pape Fund increases investment in Entersekt

South Africa's financial authentication company, Entersekt, has recently garnered...

Cyril Ramaphosa re-elected as South Africa’s president

South Africa’s president Cyril Ramaphosa has been reelected by...

South Africa: Ramaphosa poised for re-election amidst ANC turmoil

As Cyril Ramaphosa prepares for re-election as South Africa's...

Niger court lifts immunity of deposed President Bazoum

The top court in military-governed Niger has lifted the...

G7 pledges $420 million in investments for Africa

The G7 leaders have pledged $420 million in investments...

Nigeria secures $2.25 billion to bolster economy stability

Nigeria, the largest economy in Africa, has successfully secured...

Uganda to reduce commercial borrowing to tackle debt crisis

Uganda has been facing a mounting public debt crisis,...

How Betty Kyallo manipulated senior officers to stop fraud investigation

Kenyan media personality and entrepreneur, Betty Kyallo has been...

Related Articles

Discover more from Who Owns Africa

Subscribe now to keep reading and get access to the full archive.

Continue reading