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Connecting Capital within African Agrifood Systems
The report argues that capital mobilization for African agrifood systems is hindered by a systemic misalignment between the risk-return mandates of climate finance vehicles and the operational realities of agribusinesses. Drawing on a portfolio of 17 finance vehicles and 23 enterprises, the Climate Policy Initiative (CPI) finds that effective investment requires active intermediation, demand-side intelligence in vehicle design, and TA calibrated to specific investor screening criteria. It highlights a particular gap in financing for food crop economies, which are often overlooked in favor of export-oriented cash crops. The report recommends that donors fund coordination infrastructure, integrate pre-investment TA into vehicle structures, and support blended finance mechanisms that combine cash and food crop investments to enhance food security.
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Document type: Report