Africa has an estimated net food import bill of US $35.4 billion in 2015, with about 15 food chains accounting for most imports, including 5 staple commodities such as wheat, sugar, rice, beef, soybeans.
Africa’s potential for agricultural production is enormous, with 60% of the world’s unused arable land. Increased food demand and changing consumption habits are leading to rapidly rising net food imports, which are expected to grow from US $35 billion in 2015 to over US $110 billion by 2025, which could be offset by increased African production. Export of primary agricultural production is still very high in Africa compared to other regions of the world.
Access to food is a fundamental human right. It is also essential for ending hunger and malnutrition, and ensuring a healthier and productive workforce. Although agriculture employs over 60 percent of the African workforce and accounts for roughly a third of the continent’s GDP, Africa is the most food-insecure region in the world with more than 232 million under-nourished people, or approximately one in four.
Structural food insecurity is a particular challenge in fragile economies, which are disproportionately susceptible to resource and commodity price shocks and where poor agriculture infrastructure, governance and weak institutions result in low productivity and a heavy dependence on food imports.
During the just concluded African Development Bank (AfDB) annual meeting in India, FIN had a very fruitful deliberation with the government of India (Minister of Renewable Energy, Agriculture and India Exim Bank) who is committing about $10 billion to fund Agricultural projects in Africa.
FIN equally reached understanding with some Indian companies on Agriculture Technologies, Machines & Equipment, capacity building, technology transfer and Agricultural value chain programme for the international market.
FIN is favourably disposed into opening credit lines in some critical areas of Agricultural value chain to ensure that Nigeria attains $20-$30 million food export invoice in the next two years.
FIN shall assist in getting up to USD 100 million financing credit lines for Government approved Projects for about 15 years repayment period at special interest rate. The loan will be guaranteed by the Central Bank with 20% counterpart funding by the federal government.
FIN has expert in experts in agricultural production and food processing. FIN has a prototype the ensure that the entire value chain in food processing, preservation and export is triggered in Africa.
FIN has the capacity to secure funding for Agric financing and procurement of food processing machines.