MBABANE – Eswatini’s smallholder farmers stand to gain from a major financial boost with the African Development Bank’s (AfDB) announcement of an E9.18 billion (around US$500 million) funding facility. This initiative is designed to unlock up to E183.61 billion (approximately US$10 billion) in financing for agricultural projects across Africa.
The announcement was made by AfDB President Dr. Akinwumi Adesina at the High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi. The facility, which is currently being reviewed by the bank’s Board of Directors, will provide financial instruments, including trade credit guarantees and blended finance mechanisms, aimed at reducing transaction costs for small enterprises and improving their access to capital.
Eswatini’s commitment to strengthening its agricultural sector was represented by Minister of Agriculture Mandla Tshawuka, who attended the conference. Smallholder farmers in Eswatini have long struggled with limited access to financing, as traditional financial institutions have often been hesitant to lend due to perceived risks. The AfDB’s new facility is expected to help address these challenges and provide critical support to the country’s agricultural sector.
Initiatives like the Lower Usuthu Smallholder Irrigation Project (LUSIP), led by the Eswatini Water and Agricultural Development Enterprise (EWADE), have already demonstrated the positive impact of investment in smallholder farming. LUSIP has allowed thousands of farmers to shift from subsistence farming to more sustainable commercial agriculture, enhancing household incomes and food security.
The AfDB’s commitment to Africa’s agricultural development has grown significantly since the 2023 Dakar 2 Feed Africa Summit. At the summit, 34 African heads of state pledged to prioritize food security. As a result, development partner pledges have surged from E550.83 billion (approximately US$30 billion) to E1.32 trillion (about US$72 billion), with the AfDB contributing a substantial E183.61 billion (around US$10 billion).
To date, the AfDB has approved 77 projects worth E71.52 billion (around US$3.9 billion) to support food and agriculture across 32 countries. The bank is also planning additional approvals worth E31.65 billion (about US$1.72 billion) this year. Notable programs supported by the AfDB include the Technologies for African Agricultural Transformation (TAAT), which has provided 25 million farmers with climate-resilient crops, and the African Emergency Food Production Facility, which has distributed millions of tonnes of seeds and fertilizers.
AfDB Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, stressed the urgency of addressing the challenges facing smallholder farmers. She called for immediate action to transform the sector. Pan African Farmers’ Organisation (PAFO) President Ibrahima Coulibaly also emphasized the critical need for investments in agriculture, stating that the sector holds the key to alleviating hunger, malnutrition, and poverty across the continent.
The new facility aligns with Eswatini’s agricultural development strategy, particularly the National Development Strategy 2022–2032, which focuses on food security and agribusiness diversification. Government initiatives such as the ‘Made in Eswatini’ campaign are also expected to benefit from this funding, enhancing local food production and agro-processing capabilities.
Minister Tshawuka reiterated the country’s commitment to ensuring that smallholder farmers can fully benefit from this new opportunity.
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