FAO Report Calls for Urgent Coordinated Financing to Address Agrifood Challenges in Africa

In Africa, hunger and food insecurity continue to rise, while the gap between existing funding for agriculture and the funds needed to transform the agrifood system remains. This is according to the report titled Africa Regional Overview of Food Security and Nutrition 2025, released by the Food and Agriculture Organization of the United Nations (FAO), the United Nations Economic Commission for Africa (ECA), the World Food Programme (WFP), and the African Union Commission (AUC).

The key messages of the report include the following:

• Over 306 million people were undernourished in 2024, indicating an increase of about 10 million people from the 2023 estimates.
• Deterioration in food security was observed across all subregions from 2023 to 2024. 
• The average cost of a healthy diet (4.41 purchasing power parity dollars per person per day) is increasing, with a 5.5% increase from 2023 to 2024. 
• External development aid grew minimally, with less than 27% targeted toward nutrition and food security.
• Agriculture receives under 4% of total bank credit, while annual foreign direct investment routinely stalls below USD 2 billion.
• Small and medium agricultural businesses are stuck in the middle—too big for microfinance, but too small for commercial banks.

Based on the recommendations, progress can be achieved by strengthening the policy and institutional environment to facilitate public-private partnerships and secure agrifood investments. The report also provides a roadmap that includes enhancing access to affordable credit, building the capacity of small and medium-sized enterprises, and leveraging climate finance and blended finance solutions.

Read the report and the news release for more.