Afreximbank and ARISE IIP (Arise Integrated Industrial Platforms) have concluded a framework agreement for an ExAFS (Export Agriculture for Food Security) Initiative with the governments of Chad (Chad National Development Programme), Malawi (Zimbabwe National Development Programme), and Egypt (Egypt National Development Programme). The aim of the ExAFS initiative is to promote food security in Africa
On the fifth day of IATF2023, the framework agreement was signed by Afreximbank President and Chairman, Professor Benedict Oramah. The other signatories were: Robertine Walendom (Minister of Industry and Trade) of Chad. Sosten Gwengwa (Industry and Trade) of Malawi. Anxious Masuka (Minister of Lands, Agriculture and Rural Development) of Zimbabwe. Rania A. al-Mashat (Minister of International Cooperation) of Egypt. Gagan Gupta (Founder and CEO ARISE IIP).
Afreximbank and its strategic partners, as well as member countries, are investing US$2 billion in ExAFS to increase production, processing, and intra-Africa trade in agricultural products, and to give African farmers and agri-businesses access to larger markets across Africa. ExAFS aims to reduce Africa’s near-20 per cent hunger rate by reducing its reliance on other regions for essential food commodities. It also aims to increase sales, improve prices, and improve the profitability of Africa’s agriculture value chain.
The initiative will leverage public-private partnerships to set up agricultural transformation centres in agricultural production zones (ATCs) to facilitate the collection, sorting, storage and transportation of agricultural produce from agricultural communities as raw materials for processing or distribution, as well as providing additional services to farmers such as microfinance, basic social assistance, cold storage, extension services, and training.
Afreximbank’s role will be as a financial intermediary, facilitator and consultant and will spearhead the implementation of the partnership activities, while the governments of pilot producer countries of the agricultural product (Zimbabwe; Malawi; Chad) will act as policy facilitators and create favourable conditions for the Agri-TCs.
The ATC anchor investors (Zone Developers, Large Scale Commercial Farmers, Seed Companies and Development Finance Institutions) will fund the ATC and its infrastructure and be the main buyers and aggregators of agricultural produce in origin markets, while anchor buyers (Government of Egypt) will be the main buyers of agricultural produce in export markets.