Private sector input to the agriculture sector is yet to attract farmers’ appetite to seek financial assistance to fund farming. Currently, private sector commitment in agriculture in Africa stands at Sh1.4 trillion ($14 billion), which is over and above other contribution by various value chain players such as the government.

Money and plant. Hand holding euro coin.

Executive director of Growafrica William Asiko says the private sector in Africa is committed to contributing to the agriculture sector to stimulate more growth and assist in taming the grinding poverty among other economic imbalances.

“But there is slow uptake of the investments by the farmers. Out of the commitments extended so far, only 20 per cent have been converted into actual investments,” he said. But, local pundits say the private sector investment sometimes does not respond to the reality on the ground.

In the last decade, commercial banks, venture capital institutions and non-governmental and insurance companies have increased their attention in the agriculture sector, though farmers are still not enticed citing tough conditions.

“The slow uptake by the private sector is, thus, impacting the snail performance of the agriculture sector which is the main economic stay of more than 75 per cent of African countries population,” he added. Asiko said the private sector in Africa is grappling with various challenges such as lack of predictability, market distortions and lack of consistency in productivity.

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The SME Resource Centre works exclusively with Sme Business Club member assisting with the financial solutions for our Business opportunities programmes which involve Miliki Biashara (Manufacturing), Kilimo Biashara & Miliki Transport.

http://smeafrica.net/kilimo-biashara/agricultural-financing/

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