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USAID and Norway Launches New $ 70 Million Fund to Support farmers and agricultural businesses

New Fund to Support 1.5 Million African Farmers

Finance September 20, 2023

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USAID and Norway Launches New $ 70 Million Fund to Support farmers and agricultural businesses

Africa is reeling from hunger and starvation as a result of many factors, with climate change being the most undeniable stubborn reality. Rising global temperatures, extreme weather conditions, floods, and unpredictable seasonal changes just to name a few, are all drivers of world hunger with Africa being the most vulnerable.

Apart from climate change, most African Farmers and Agricultural businesses lack the necessary resources in the form of capital and funding to fight against increasing hunger and starvation. According to a report by the United Nations, Africa has the highest share of hunger than any continent in the aftermath of the COVID-19 pandemic, with 46 million people directly affected. Climate change is a leading cause of hunger, second only to conflict, according to the World Food Program.

As a result, on the 18th of September 2023, the United States, through the USAID along with Norway Launched a New Fund to increase investment in Africa’s Agricultural Growth and Support 1.5 Million African Farmers. The $70 million will be equally split between the USAID and Norway. The USAID will commit $35 million, alongside a matching contribution from Norway.

The USAID was represented by its Chief Administrator, Samantha Power whereas Norway was represented by its Minister of International Development Beathe Tvinnereim. All this took place on the sidelines of the U.N. General Assembly.

“Without these smaller agribusinesses, Africa’s smallholder farmers are growing just enough to feed themselves and their families,”
USAID Administrator Samantha Power

“But connect them to a nursery that can supply them with quality seeds and fertilizer, a market where they can sell excess harvest or a processor that can turn their crops into higher-value products, and suddenly they have a chance to take off, delivering the kind of agricultural growth we know is necessary to fight hunger and poverty.”
USAID Administrator Samantha Power