Lessons learned on boosting private agrifood investments in Africa by Development Finance Institutions

The FAO Investment Centre co-organized and moderated the Development Finance Institutions (DFI) Forum with the African Agri Council in Cape Town, South Africa, on 25 November 2025. Held as a side-event of the African Agri Investment Indaba conference, the Forum gathered representatives from bilateral and multilateral DFIs financing private agrifood investments across the continent to support more and better access to finance for small and medium enterprises (SMEs).

During the discussions, DFIs shared key insights from recent agrifood transactions, new financing initiatives and lessons drawn from their operational experience.

Participants included long-standing FAO Investment Centre partners, such as the International Fund for Agricultural Development, Cassa Depositi e Prestiti (CDP) and the African Development Bank, and the International Finance Corporation alongside FinDev Canada, Finnfund and the Japan International Cooperation Agency. FAO partners, the European Union (EU) blending facility AgriFi also joined the discussions.

The Investment Centre emphasized that DFIs play a critical role in mobilizing finance for private agrifood investments and in enhancing the sustainability of agrifood systems in Africa.

Participants stressed the need for closer collaboration among DFIs and pointed to the Centre’s role as neutral broker facilitating greater cooperation. They also stressed the need for more working capital financing, complimenting local financial institutions’ lending, a finding reinforced by two recent studies by the Investment Centre on the cocoa and cashew sectors in Côte d’Ivoire.

Innovative financing approaches were also discussed. One panel explored how African SMEs can raise funds from commercial banks and impact funds and tap into funding from DFIs. For example, through TERRA and the support of a European Union guarantee of up to 109.5 million euros, CDP will provide dedicated credit lines and guarantees to selected financial institutions and corporations operating in Africa and Türkiye. The FAO Investment Centre will provide technical assistance tailored to the needs of local financial institutions.

The Centre’s representatives also contributed to several panels and keynote speeches at the Conference including recent lessons from value chain studies in Africa, such as supporting investments in cocoa and cashew processing in Côte d'Ivoire; and strategies to boost  agrifood trade along the Lobito corridor in Angola.

Alessandro Marini, Chief of the West and Central Africa Service, moderated a session titled “How African Nations Can Build Resilient Agrifood Systems”, exploring the roles of policymakers, agribusinesses, DFIs and institutional investors in this transformation. Anass Khallouqi, Agribusiness Finance Officer, moderated a session on “Unlocking Agribusiness Finance for Agrifood SMEs in Africa”, discussing the perquisites for agrifood SMEs to tap into funding from DFIs. Roble Sabrie, Senior Economist, moderated a panel discussion on “Financing Agro-Industrial Parks”, highlighting the role of blended finance, guarantees, and well-structured public-private partnerships in de-risking early investments and crowding in commercial capital.

The Conference also provided the chance to consolidate existing partnerships, develop new cooperation and discuss main trends in agrifood financing for both the public and private sector.