The following article is an extensive in-depth look at agricultural financing in Africa. It is part of a series by the Financial Times’ This is Africa publication in partnership with the Rockefeller Foundation and the Skoll World Foundation. The article addresses how after years of holding the sector at arm’s length, how large banks and lending institutions, private equity funds, and microfinancing institutions are adapting their methods to deal with the unique challenges faced in this developing region. And as agricultural financing grows in Africa, it will mitigate the risks of insecurity by using innovative funding structures such as securing a sold take off before funding, using specialist managers on the ground to manage farmers and the crops being grown, using insurance policies to offset losses associated with farming and rigorous due diligence. And as agriculture becomes better funded and less insecure the continent’s growth will stabilize as well.
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