Partnership Aims to Mobilize Capital and Foster Growth Across African Agricultural Value Chains
In a significant move towards bolstering Africa’s agricultural sector, the International Finance Corporation (IFC) and OCP Group, the world’s largest phosphate-based fertilizer producer, have joined forces to launch an agri-finance platform with the ambitious goal of mobilizing $800 million in blended capital by 2030. The initiative aims to support sustainable food production and distribution systems across Africa, fostering skills development, job creation, and food security.
The newly established platform intends to strengthen 30 agricultural value chains throughout Africa through 60 agri-finance operations, covering a diverse range of crop types. By addressing challenges hindering the sector’s growth and resilience, such as access to finance and skills training, the platform seeks to drive sustainable development and increase food security across the continent.
Despite agriculture’s pivotal role in Africa’s economy, contributing approximately 20 percent of the continent’s GDP and employing over 60 percent of its workforce, Africa remains heavily reliant on food imports, posing a threat to its resilience against external shocks. The targeted investment strategy of the platform aims to support the sustainable growth of the agricultural sector, enhancing its capacity to meet the continent’s food needs.
Mostafa Terrab, Chairman and CEO of OCP Group, emphasized the transformative potential of the partnership, stating, “Today we take a major step towards a just African agricultural transformation by mobilizing substantial new financing for African farmers and for the value chains that support them.” Terrab highlighted the partnership’s commitment to unlocking Africa’s agricultural potential to feed not only itself but also the world.
Makhtar Diop, Managing Director of IFC, echoed Terrab’s sentiments, emphasizing the critical importance of agriculture for Africa’s economic development. Diop expressed excitement about scaling up the partnership with OCP to enhance food production and attract investment to the continent, underscoring the need for collaborative efforts to address pressing agricultural challenges.
The agri-finance platform aims to attract new investors by building a pipeline of interventions, each monitored for its impact on social, economic, and environmental measures. Additionally, the platform will conduct in-depth studies of targeted value chains to identify challenges and design tailored solutions, fostering the emergence of African champions and promoting the sharing of best practices across the continent.
Already, the platform has partnered with Bank of Africa to improve access to fertilizers and other inputs for African farmers and agri-processors. Projects supporting cashew and rice value chains in Côte d’Ivoire have been initiated, with plans underway for similar initiatives in Cameroon, Gabon, and other countries.
The development of the platform leverages the expertise of INNOVX, a venture platform launched by Mohammed VI Polytechnic University (UM6P), and the deep knowledge of OCP Africa, OCP Group’s subsidiary dedicated to the continent. With a focus on innovation and sustainability, the platform aims to drive positive change and create lasting impact across Africa’s agricultural landscape.
