The African Development Bank, in a statement on Tuesday, estimated that farmers in Africa will need as much as US$65bn in loans annually to produce enough food to curb imports and cushion their economies from external shocks.
The continent imports over 100 million metric tons of cereals at an annual cost of US$75bn. According to the lender, recent spikes in inflation, including increases in food prices following Russia’s invasion of Ukraine, further demonstrate Africa’s over-reliance on imports for food staples and agricultural inputs. The lender also noted that Africa’s food and agriculture market could increase from US$280bn annually to US$1trn by 2030. Achieving this target will require significant new investments and the removal of barriers to agricultural development.