May 24, 2022 – Nairobi, Kenya – Global Affairs Canada
Increasing global food insecurity requires new investments in climate-friendly, nature-based agricultural solutions.
Today, the Honorable Harjit S. Sajjan, Minister for International Development and Minister in Charge for the Pacific Economic Development Agency of Canada, announced that Canada has donated US$100 million to the African Development Bank (AfDB) to support the growth of small and medium-sized enterprises Businesses to support food businesses (agricultural SMEs).
Minister Sajjan stressed the importance of investing in green agribusinesses, particularly those run by or benefiting women on the African continent. Agri-SMEs produce, process and transport 70% to 90% of the continent’s food, meaning they create vital jobs and are key to strengthening Africa’s food security and ensuring we can support the inclusive and green growth Africa is driving .
The funding announced today is provided through the Government of Canada’s International Assistance Innovation Program, which helps accelerate private sector development, which contributes to the United Nations Sustainable Development Goals.
“We know that the best way to build food security on the African continent is to work with African small and medium-sized agri-food companies to help them expand and grow security across the continent while supporting a inclusive and sustainable economic growth.
- Harjit S. Sajjan, Minister for International Development and Minister in charge of the Pacific Economic Development Agency of Canada
“At a time when multiple crises are severely straining the continent’s agricultural value chain, we applaud Canada’s continued support with the significant and timely contribution of $100 million to support gender-biased small and medium-sized agri-food businesses that prioritize climate action AfDB will leverage their resources, along with Canada’s contribution, to significantly increase our support for these agribusiness SMEs, which we see as a vital economic backbone of economies across Africa and a priority in transforming the continent’s agriculture into a key engine for… recognize competitiveness. inclusive and sustainable green growth.”
- dr Akinwumi Adesina, President of the African Development Bank Group
In 2022, Canada provided US$514.52 million in funding for food and nutritional emergencies worldwide, including US$1.4 million for Kenya and US$22 million for South Sudan.
The new ACFM, combined with last year’s establishment of the Canada-AfDB Climate Fund, demonstrates Canada’s support for the AfDB’s focus on climate-resilient, inclusive agricultural production.
Funding for this initiative, called the Agri-SME Catalytic Financing Mechanism (ACFM), will provide concessional financing and technical assistance to agribusinesses, financial institutions and impact funds to enable them to provide credit to gender-focused agribusiness SMEs.
Canada’s ACFM will continue to help the AfDB raise the profile of inclusive sustainable growth. It is another example of Canada’s support of African production for African consumption.
Canada has committed US$935.6 million over 5 years (2020 to 2024) to the International Assistance Innovation Program with the goal of building markets that benefit the underserved by creating conditions for better investment in developing countries.