Agriculture, forestry and fishing play a crucial role in West Africa’s economy. These sectors provide jobs for 82 million people and make up a significant portion of the region’s GDP.
Small and medium-sized agribusinesses are an important part of the sector. They enable smallholder farmers and low-skilled workers to leave poverty behind through increased income and employment opportunities. Moreover, agribusinesses can promote inclusion by empowering women and young people. Women make up 40-60% of the formal agriculture workforce.
In addition, climate change is already affecting food production throughout West Africa. Supporting agribusinesses and farmers to understand and address evolving climate risks is critical for the sustainability of food production and for food security.
Despite their importance, these businesses face challenges accessing the finance so vital to their sustainability and growth. Across sub-Saharan Africa, the estimated annual financing gap for SME agribusinesses is $74.4 billion.
Financial services are in prime position to provide capital to these businesses. West Africa, particularly led by Nigeria, Ghana, Senegal and Cote d’Ivoire, is a rapidly growing region. While data shows a growing number of investment funds focussing on African agriculture, information on local financial market products, services, and practices is scarce.
At British International Investment (BII) our latest report, How can gender- and climate-smart approaches unlock financing for SME agribusinesses in West Africa?, aims to address this gap. Funded by our technical assistance facility BII Plus, the report seeks to help financial service providers identify credit opportunities within the food and agriculture sector and adopt an inclusive and climate-smart approach. Ultimately it aims to enhance access to finance by developing the local lending market for SME agribusinesses. We hope the report inspires action and increases access to finance in this sector.
