Agricultural finance in context: West and Central Africa

The agricultural finance sector is changing rapidly, with new trends taking root in different geographies. The Smallholder and Agri-SME Finance and Investment Network (SAFIN) is changing with the times, and bringing its services closer to the providers, enablers and recipients of finance for sustainable food systems on the ground. Our members are committed to supporting this evolution, with four institutions stepping up to host Regional Network Coordinators for SAFIN activities in Asia and the Pacific, Latin America and the Caribbean, West and Central Africa, and East and Southern Africa.

In this interview, we hear from Zara Dogo, Head of Corporate Partnerships at AFEX and newly appointed SAFIN Regional Network Coordinator for West and Central Africa, about the trends, challenges and opportunities in the region.

The global financing gap faced by agricultural SMEs continues to linger despite decades of support for the sector. What are the main challenges you see in your region?

It’s no secret — the financing gap in this agriculture is still a major challenge. In West Africa, agricultural SMEs continue to face several barriers. Many financial institutions perceive the sector as risky. Even worse, SMEs often lack collateral and the financial products on the market don’t suit their needs. There is also the challenge of infrastructure — poor transportation and inadequate storage facilities increase costs and slow down business growth. Another issue is market access. Many SMEs struggle to find buyers locally or internationally, which lowers profitability. Inconsistent government policies can also create uncertainty and discourage long-term investments like those in the agriculture sector.

What are the untapped opportunities for agricultural finance in your region?

I see exciting opportunities ahead, especially with digital financial services. Fintechs can offer mobile banking, digital wallets, and new financial tools to smallholder farmers. Climate financing for investment in sustainable practices like drought-resistant seeds or irrigation systems can promote long-term profitability for small businesses in agriculture. Blended finance models are also promising, where public-private partnerships reduce risks, encouraging investment in high-risk areas. I also want to mention that value chain finance, which focuses on different stages like production and distribution, holds the potential to enhance efficiency. The final thing that excites me about agricultural finance in the region is the growing interest in green bonds that support food security and climate action.

AFEX recently took on a leading role in convening the agricultural finance community in your region through SAFIN. Please tell us about your institution’s agricultural finance work, and what informed its decision to take on this role.

AFEX is all about improving access to capital for farmers and other participants in agricultural value chains. We develop innovative financing solutions like our Warehouse Receipt System, where farmers deposit their commodities and receive receipts that they can use as collateral for loans. We also provide input financing, offering farmers credit for essential resources like seeds and machinery, which they repay in kind after their harvest. AFEX’s digital platform, Africa Exchange, connects farmers directly to financial services, making the process more efficient and secure. These efforts align with SAFIN’s goals, so stepping into this leadership role felt natural for us.

As you chart a path for your new role as Regional Network Coordinator, what have you heard from SAFIN members in the region as their key priorities? What are your hopes for network members to achieve together in the region?

From my conversations with regional SAFIN members, I gathered that their key priorities include climate-smart agriculture, digital innovation, improving access to finance for smallholders broadly, and strengthening value chains. These priorities will drive agricultural financing and development in the region. I hope that as a group, we can leverage our shared goals to build stronger partnerships, unlock more inclusive financing models, and advocate for better policies. Together, we can create scalable projects that address core challenges and bring innovative solutions to the table. We need to ensure that financial systems evolve to benefit everyone in agriculture.

 

____

Meet the Regional Coordinator

Zara Dogo is an accomplished market expansion expert with a strong background in investment, commodities and capital markets, focusing on Nigeria and Africa. As the Head of Corporate Partnerships at AFEX, she has driven growth through strategic alliances, revenue partnerships, and stakeholder engagement. Previously, as Head of Market Growth at AFEX Commodities Exchange, Zara expanded its user base and enhanced brand visibility through strategic partnerships. Her earlier roles in investment management, institutional sales, and analysis saw her excel in fundraising and market intelligence. Zara holds a Master’s in Investment Analysis and a Bachelor’s in Business from Aston University, UK.