African Export-Import Bank (Afreximbank), an Egyptian private banking company, has committed $2 billion to the Export Agriculture for Food Security (ExAFS) initiative. The funds are designated to enhance production, processing, and intra-African trade in agricultural products, providing African farmers and agribusinesses with expanded market access across the continent. ExAFS aims to tackle Africa's food insecurity, with a nearly 20 percent hunger rate, by reducing reliance on external sources for essential food commodities and fostering improved sales and returns within the continent's agricultural value chain. Afreximbank will serve as the financier, facilitator, and advisor for ExAFS, leading partnership activities, while the governments of pilot origin countries, Zimbabwe, Malawi, and Chad, will facilitate policies to create a conducive environment for Agricultural Transformation Centres (ATCs).
ATC anchor investors, including zone developers, large-scale commercial farmers, seed companies, and development finance institutions, will invest in ATCs and their infrastructure, acting as primary purchasers and aggregators in the origin markets. Additionally, an anchor buyer, such as the Government of Egypt, will serve as the primary export market for agricultural produce. This initiative reflects a comprehensive approach to addressing food security challenges in Africa, involving multiple stakeholders across the agricultural value chain.