MCB, 15 banks join Proparco to close Africa’s $50 billion agri-finance gap

Proparco has partnered with 16 financial institutions, including Mauritius Commercial Bank, Ecobank Transnational Incorporated and Equity Group Holdings, to launch the Africa AgriTrade Coalition aimed at closing Africa’s $50 billion agricultural trade finance gap.

The initiative, unveiled at the Africa Forward Summit in Nairobi, brings together lenders with a combined balance sheet of €400 billion ($430 billion) to expand agricultural trade finance across Africa’s key commodity value chains. These include cocoa, cereals, fertilizers, soybeans and sugar sectors critical to food security and export growth.

Africa’s $50 billion agricultural finance gap

Africa continues to face a significant shortfall in agricultural trade finance, particularly for cross-border transactions. According to Proparco, the gap exceeds $50 billion, limiting growth across regional agricultural corridors and restricting access to capital for producers and exporters.

This financing constraint affects key commodities such as cocoa and cashew in West Africa, cereals and fertilizers in East and Central Africa, and maize, soybeans and sugar in Southern Africa.

Coalition targets trade finance expansion

The Africa AgriTrade Coalition, which includes AFG Holding, Banque El Amana, Banque Mauritanienne de l’Investissement, Banque pour le Commerce et l’Industrie, BPER Banca, Co-operative Bank of Kenya, Coris Holding, CRDB Bank, Ecobank Transnational Incorporated, Equity Group Holdings, KCB Bank, The Mauritius Commercial Bank Ltd, NSIA Holding Financière, Qatar National Bank, UBCI, and Union de Banques Arabes et Françaises, will focus on expanding intra-African trade finance by facilitating co-financing structures, risk-sharing mechanisms and interbank partnerships.

The platform is designed to support larger and more structured agricultural transactions, helping financial institutions scale lending while reducing exposure risks.

Boosting food supply chains and trade

The initiative comes as African economies push to strengthen regional trade under the African Continental Free Trade Area (AfCFTA).

Expanding agricultural trade finance is expected to improve market liquidity, support rural employment and enhance food supply chains amid global disruptions and tightening credit conditions.

Implementation phase begins in June

Following the signing of the declaration of intent, participating institutions will move into the implementation phase in June.

The next stage will focus on identifying priority transactions, building a pipeline of deals and strengthening collaboration among lenders. Initial financing transactions are expected in the coming months, with additional institutions likely to join the platform.