The Financing Agri-Food Systems Sustainably (FINAS) conference 2025 has officially kicked off today at the Kenyatta International Conference Centre (KICC) in Nairobi.
The Conference has brought together a diverse assembly of African and international stakeholders under the theme “Taking Ownership: Rethinking Sustainable Financing for Africa’s Food Systems”. The Conference will run from May 20th to 22nd 2025.
Speaking during the official launching of the Conference Cabinet Secretary, Ministry of Agriculture and Livestock Development Mutahi Kagwe said that despite the sector’s importance, African farmers especially smallholders continue to face a massive financing gap, estimated at USD 60 to 100 billion annually.
“In Kenya, out of the total commercial banks loan book of US$49 bn in 2023, only three percent was lent to the agricultural sector. This is a sad indictment,” Kagwe said.
CS Kagwe said agri-fintech solutions are also emerging as game-changers with various platforms offering bundled services including weather-based crop insurance, digital loans, soil analytics, and input delivery to farmers via mobile phones.
“I urge our financial institutions to be more creative and alive to the intricacies of farming as a business. Innovate. In this way, we will be pivoting and effecting a paradigm shift to a more inclusive, innovative, and sustainable financing ecosystem. And the key driver here is technology,” he said.
In her remarks, East African Community Secretary General Veronica Nduva noted that the agri-food systems value chain remains the backbone of the East African Community (EAC) Partner States’ economies providing livelihoods and driving regional growth.
Ms Nduva further noted that EAC promotes digitalization in financing the agricultural sector to improve efficiency, reduce costs, and increase accessibility for farmers.
“This is achieved through initiatives like the East Africa Regional Digital Integration Project (EARDIP), which aims to enhance digital infrastructure, particularly in rural areas, and facilitate cross-border transactions,” she said.
She said that EARDIP focuses on increased production, processing, storage, and marketing of agricultural products to achieve food security and eliminate hunger.
“The Policy also emphasizes on empowering youth, particularly women, youth, and vulnerable groups through better access to finance, innovation, technology and land,” she said.
African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment Moses Vilakati said FINAS 2025 will be central to delivering on commitments of African Governments on various agreements including the recent Kampala Declaration.
“The urgency to transform our food systems is no longer a matter of choice, it is a necessity. The Kampala CAADP Declaration of January 2025 is our collective response to this urgency,” he said.
He noted that we must rethink how to finance Agriculture since the traditional methods to support agri-food systems transformation have failed.
“We therefore need innovative financing mechanisms that enhance investments, incentivize sustainability, and empower smallholder farmers, especially women and youth,” Kagwe added.
FINAS 2025 has attracted participation from across the board including farmers, entrepreneurs, digital innovators, the private sector, and government representation from national and regional bodies.
Among major partners in the African dialogue include various Kenyan ministries, GIZ, AGRA, FSD Kenya, Aceli Africa, Finance in Motion, the Africa Development Bank, Netherlands Food Partnership, Transformational Investing in Food Systems (TIFS), Heifer International, Digifarm, and several Financial lending institutions.
It is expected that the three-day Conference will delve into crucial aspects of transforming Africa’s agri-food systems, addressing the significant financing gap and fostering innovative solutions for resilient and inclusive agricultural growth on the African continent.
The Summit will officially be closed on May 22nd, 2025 by the Cabinet Secretary for Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Wycliffe Oparanya.
By Anita Omwenga
