The United States and Norway have pledged a total of $70 million to establish a fund aimed at assisting farmers and agricultural enterprises in Africa.
The United States and Norway have pledged a total of $70 million to establish a fund aimed at assisting farmers and agricultural enterprises in Africa.
This initiative, revealed by a U.S. Agency for International Development (USAID) spokesperson, addresses the escalating hunger crisis in various African regions, exacerbated by armed conflicts and extreme weather patterns attributed to climate change driven by fossil fuels.
The announcement was made by USAID Administrator Samantha Power and Norwegian Minister of International Development Beathe Tvinnereim on the sidelines of the U.N. General Assembly. This move comes at a time when global powers, including Russia and China, vie for influence and partnerships in developing countries.
The fund, with ambitions to secure a total of $200 million through additional contributions from donors, has the potential to benefit nearly 7.5 million individuals, according to the spokesperson.
USAID and Norway will each provide an initial commitment of $35 million. The fund’s impact is projected to extend to support 500 small- and medium-sized agricultural businesses, benefitting 1.5 million smallholder farmers, and creating almost 60,000 jobs within the private sector.
The primary objective of the fund is to stimulate additional investments, potentially amounting to hundreds of millions of dollars, by mitigating the risks associated with such ventures in Africa.
While a famine crisis in parts of the Horn of Africa was averted this year due to unexpectedly favorable rainy seasons, aid officials estimate that approximately 60 million people in seven East African countries remain food insecure.
USAID Administrator Samantha Power emphasized the crucial role of smaller agribusinesses in the region, stating, “Without these smaller agribusinesses, Africa’s smallholder farmers are growing just enough to feed themselves and their families. But connect them to a nursery that can supply them with quality seeds and fertilizer, a market where they can sell excess harvest, or a processor that can turn their crops into higher-value products, and suddenly they have a chance to take off, delivering the kind of agricultural growth we know is necessary to fight hunger and poverty.”
This initiative reflects a significant step towards addressing food insecurity and bolstering agricultural development in Africa, demonstrating international collaboration and commitment to combatting the pressing challenges faced by the continent.