AFTA is a registered Pan Africa Finance Technical Assistance organization focusing on expanding financial access to agribusiness value chains in Africa. AFTA interacts with public funds to leverage banks to increase agricultural lending to key value chain activities that impact positively on small holder farming models.. The initiative takes a more comprehensive development approach by having a “de –risked” incentivized financial value chain to support a structured agricultural value chains.
The agriculture sector has a crucial role to play in the long-term development of most African countries. For many African countries, agriculture sector provides the largest contribution to national income; it is the biggest source of foreign exchange and is a major source of saving and investment. Although the role of agriculture in growth and poverty reduction in Africa is well recognized, there has been gross under-investment in the sector over the years. The under-investment in African agriculture is evidenced by the low and sometimes declining budget allocation by governments to the sector.
In the past few years, agricultural development has regained prominence in discussions and policies in Africa on economic development and poverty alleviation, thanks to a number of high profile initiatives that have refocused attention to investment in agriculture. However, despite these initiatives, financing African agriculture remains a matter of major concern. To eradicate poverty and ease the chronic food shortage in the continent, a significant increase in new investment in agriculture is imperative.