The Financing Commission highlights the difficulties of access to financing for SMEs and mid-caps, particularly in West and Central Africa. This situation hinders the improvement of the performance of the agricultural, livestock and agro-industry sectors, as well as food sovereignty and adaptation to climate change. Although large companies in the sector can sometimes obtain financing, emerging companies and SMEs/ETIs are largely excluded.
In many countries in West and Central Africa, there are no banks specializing in agriculture and livestock, nor effective development banks. To remedy this situation, ALFA is calling for a change in financing mechanisms, starting with France. Following the involvement of President Macron during his visit to Cameroon in July 2022, the French institutions concerned (AFD, Proparco, BPI) set up a financing system adapted to the needs of agricultural businesses in Africa, called "Farm- Private sector".
However, despite this initiative, the objective of financing emerging companies and SMEs has not been fully achieved. Each stakeholder acts according to its own rules, which limits the effectiveness of financing. ALFA carries out lobbying actions to change the procedures of Proparco and the BPI, and seeks to mobilize other European donors as well as the IFC.
Faced with these challenges, ALFA is proposing the creation of an ad hoc financial vehicle mobilizing public and private resources, with financing tickets ranging from €500,000 to €8,000,000. The Foundation for International Studies and Research (FERDI) has carried out a study on the structuring of such an instrument, the results of which will be presented on June 26 in Paris.
The leaders of the Financing commission are Pierre Arnaud and Jean-Marc Gravellini.