Since 2000, China has emerged as a major development financier in Africa, committing over US$180 billion toward various infrastructure and industrial projects. While much of this capital has targeted transport and energy, agriculture has also become a focal point of the partnership. A recent analysis by food systems specialist Adrino Mazenda examined 41 agricultural loans totaling approximately US$2.26 billion issued between 2000 and 2024.
The study reveals that Chinese funding is heavily concentrated on primary production. Farm schemes accounted for nearly 36% of this lending, while fisheries received 29%. In contrast, investment in essential post-harvest infrastructure—such as cold-chain systems and storage facilities—made up only 3% of the total, with agro-processing facilities receiving less than 2%.
According to the research, these investments are often driven by project practicality and the applicant's capacity to execute, rather than a cohesive strategy to transform the broader agricultural sector. While these loans have successfully improved irrigation and rural infrastructure, the lack of support for processing, transport networks, and market access limits the potential for long-term economic growth and food security.
To maximize the impact of future development finance, the analysis suggests that African governments should prioritize negotiating loans that support the entire agricultural value chain. This includes integrating production with research, extension services, and market development. Furthermore, the report emphasizes the need for greater transparency in borrowing and improved coordination between national departments to ensure international funding aligns with long-term domestic agricultural goals.
Source: The Conversation
No comments yet. Be the first to share your thoughts.