Administrator Samantha Power Launches New Fund to Spur Investment in Africa’s Agricultural Growth and Support 1.5 Million African Farmers | Press Release | U.S. Agency for International Development
Administrator Samantha Power Launches New Fund to Spur ... USAID
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USAID and Norway Launch Multi-Donor Fund to Support Agri-SMEs in Africa
Today, USAID Administrator Samantha Power and Anne Beathe Tvinnereim, the Norwegian Minister of International Development, launched a new multi-donor fund designed to unlock hundreds of millions in financing for small-and medium-sized agricultural businesses (agri-SMEs) in Africa.
Funding Commitments and Objectives
Working with Congress, the United States through USAID, will provide an initial commitment of $35 million, alongside a matching contribution from Norway. With the combined amount of $70 million, Norway and the United States aim to reach a total of $200 million through additional donor contributions, which will catalyze hundreds of millions more in commercial financing by reducing the risk of investing. This fund has the potential to support 500 agri-SMEs and 1.5 million smallholder farmers, ultimately benefiting nearly 7.5 million people. In addition, the fund will support nearly 60,000 private sector jobs.
Key Stakeholders
The fund was announced today at an event with Administrator Power, Minister Tvinnerim, U.S. Secretary of Treasury Janet Yellen, Kenyan President William Ruto, African Development Bank President Akinwumi Adesina, U.S. International Development Finance Corporation CEO Scott Nathan, and Acumen CEO Jacqueline Novogratz.
Focus on Africa and Sustainable Development Goals
The fund will focus specifically on Africa, where hunger remains prominent. The opportunity to reduce poverty and hunger through investment in agriculture is enormous. Agri-SMEs are Africa’s largest employer and economic engine – and the key to transforming a largely subsistence agriculture sector into a commercially-sustainable industry that can feed the continent. It’s these agri-SMEs – the input suppliers, traders, agro-processors, and urban retailers – that support 95 percent of smallholder farmers in sub-Saharan Africa with the critical tools and services they need to increase productivity and become profitable. Together with the farmers they support, agri-SMEs are the driving force behind food systems in Africa. Yet, three-out-of-four agri-SMEs can’t access formal bank financing, and are too large for microfinance loans that are typically less than $1,000 – creating an estimated $100 billion gap in unmet demand for financing.
Feed the Future Initiative and Sustainable Impact
The new fund is one of the ways USAID, as the lead for the U.S. government’s Feed the Future initiative, is working to address food insecurity through partnership with the private sector. With financing catalyzed through this fund, agri-SMEs can reduce hunger and poverty, combat climate change, close gender gaps, and spur economic growth – creating a prosperous and more resilient future for all.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable | – |
| SDG 2: Zero Hunger | 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment | – |
| SDG 5: Gender Equality | 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources, in accordance with national laws | – |
| SDG 8: Decent Work and Economic Growth | 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services | – |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources | – |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning | – |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 2: Zero Hunger
- SDG 5: Gender Equality
- SDG 8: Decent Work and Economic Growth
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
- Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.
- Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources, in accordance with national laws.
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services.
- Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets.
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable | – |
| SDG 2: Zero Hunger | 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment | – |
| SDG 5: Gender Equality | 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources, in accordance with national laws | – |
| SDG 8: Decent Work and Economic Growth | 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services | – |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources | – |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning | – |
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Source: usaid.gov
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