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Southern Africa Seeks $2.1 Billion to Modernize Agri-Food Systems

Southern Africa Seeks $2.1 Billion to Modernize Agri-Food Systems
Tuesday, 21 October 2025 12:34
  • The Southern African Development Community (SADC) and FAO are seeking $2.1 billion in investments to modernize agriculture.
  • The funds target four priority sectors: irrigation, mechanization, agro-processing, and trade facilitation.
  • The initiative aims to strengthen climate resilience, boost productivity, and enhance food security for 42 million people.

The Southern African Development Community (SADC), in partnership with the Food and Agriculture Organization (FAO), unveiled a $2.1 billion investment portfolio in Rome to strengthen the region’s agri-food systems and resilience to climate change.

The announcement was made on October 20, 2025, during the FAO Hand-in-Hand Investment Forum, held on the sidelines of the 2025 World Food Forum.

According to the joint statement, the funds will finance priority agricultural projects to modernize production systems, stimulate trade, and support regional food security.

SADC outlined four priority investment areas validated during a regional workshop in Harare in September: irrigation, agricultural mechanization, agro-processing, and trade facilitation.

The financing targets are distributed as follows: $600 million for irrigation, $300 million for mechanization, $400 million for agro-processing, and $800 million for trade facilitation.

Officials said the initiative aims to create bankable projects capable of attracting private investors, development banks, and technical partners.

Agriculture remains a cornerstone of southern Africa’s economy and food security, yet it is increasingly vulnerable to climate shocks, soil degradation, and infrastructure deficits.

The region faced a severe food crisis in early 2025 due to El Niño-induced droughts during the 2023–2024 farming season, which led several countries — including Malawi, Zambia, Zimbabwe, and Lesotho — to declare states of disaster.

According to the SADC Regional Vulnerability Assessment Programme, an average of 40 million people face food insecurity each year across the region.

In response, SADC is leveraging regional frameworks such as the Regional Agricultural Policy (RAP), the Regional Agricultural Investment Plan (RAIP), and the Food and Nutrition Security Strategy (FNSS 2015–2025).

However, the bloc emphasized the urgent need to strengthen early-warning systems, expand climate-resilient farming, and improve cross-border coordination to address systemic vulnerabilities in the food chain.

According to FAO estimates presented at the forum, the planned projects could generate an average internal rate of return of 20%, increase annual income by $223 per capita, and directly benefit 7.8 million people, with indirect benefits extending to over 42 million inhabitants.

SADC officials said these investments will bolster regional value chains, reduce dependency on food imports, and position southern Africa as a competitive agri-food hub.

This article was initially published in French by Charlène N’dimon

Adapted in English by Ange Jason Quenum

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