Agri-food SMEs: 7 solutions to finance your projects in West Africa in 2025

In West Africa, the agri-food sector occupies a strategic place in the economy. It accounts for approximately 35% of regional GDP and more than 50% of jobs.

Côte d’Ivoire, Senegal, Ghana and Nigeria are all benefiting from solid growth in 2024–2025, driven in particular by agriculture and agro-industry. For example, the West African Economic and Monetary Union is forecast to grow by 5.9% in 2024, reflecting a boom in the agricultural and food sector.

Yet, paradoxically, financing for this sector remains insufficient: in Senegal, bank loans to agriculture account for less than 5% of total credit, leaving a significant financing gap.

In this context, financing an exporting agri-food SME has become a major challenge. These businesses need capital to comply with international standards (quality certifications, EU health standards, etc.), invest in the processing of their products, improve their export logistics and increase their production capacity.

Whether it is to obtain an organic label, purchase packaging equipment or build up an exportable stock, agri-food SMEs must mobilise appropriate financing. Lacking sufficient internal resources, they turn to various financing mechanisms.

In 2025, there are at least 7 complementary solutions to finance your agri-food projects in West Africa. Each has its advantages, access criteria and key players. Discover these solutions and practical advice to maximise your chances of benefiting from them.

1. Financing from local banks

Local commercial banks remain a traditional source of SME financing. Institutions present in the region (Bank of Africa, Ecobank, Orabank, etc.) offer investment credit or working capital loans to formal businesses. Access is not straightforward: banks generally require real collateral (a land mortgage, equipment pledge, etc.) and apply relatively high interest rates to offset risks.

Indeed, financing small agri-food businesses is often perceived as risky due to a high default rate and significant monitoring costs. As a result, many agricultural SMEs are turned down for conventional bank loans.

In response, support mechanisms have emerged. For example, the GARI Fund (Guarantee of Private Investments in West Africa) and the African Guarantee Fund offer partial guarantees to banks to cover a portion of the risk, thereby facilitating the granting of credit to SMEs.

Innovative arrangements are developing: in 2024, BGFIBank was able to launch more than 6 billion FCFA in SME loans thanks to a $5 million guarantee granted by the African Guarantee Fund. These mechanisms encourage banks to finance agro-industry more extensively.

• Access criteria: solid banking file (up-to-date accounts, business plan), required collateral (land, building, equipment), sometimes an initial contribution.
• Concrete example: in Côte d’Ivoire, SIB or NSIA Banque financing cashew-exporting SMEs, subject to guaranteed purchase contracts.
• Practical advice: prepare a solid business plan and demonstrate the viability of your project, highlight any export contracts already signed, and enquire about guarantee funds available in your country to support your application.

2. Microfinance and mesofinance

When traditional banks fall short, microfinance institutions step in for small agricultural entrepreneurs. In West Africa, there is a vast network of decentralised financial systems (microfinance institutions, credit cooperatives, etc.) reaching into rural areas.

They grant microcredits ranging from a few hundred to several million FCFA, with simplified procedures and a better understanding of local conditions. For example, mesofinance has developed to bridge the gap between microcredit and conventional banking: the COFINA Group, present in 7 West African countries, has established itself as a key player in small business financing.

In 2024, COFINA Senegal granted loans to 57 agricultural SMEs (horticulture, cereals) totalling 440 million FCFA thanks to a credit line supported by the EIB and the European Union. Among the beneficiaries, a market gardening operation in Thiès received 30 million FCFA to build a cold storage facility — a type of financing that would previously have been unthinkable without microfinance.

Institutions such as COFINA, Baobab (formerly MicroCred), PAMECAS and FECECAV/FECECAM offer products tailored to agricultural micro and small enterprises: seasonal credit to purchase inputs, equipment credit for a tractor, etc. Access is more flexible: financing is often granted without mortgage collateral, relying instead on community trust (group loans, solidarity-based prudence). In return, interest rates are higher than at banks and amounts are capped according to the size of the business.

• Access criteria: existing activity, even informal; membership of a group where applicable; repayment history for credit renewals; moral or solidarity-based prudence rather than material collateral.
• Concrete example: in Burkina Faso, the PAMF microfinance institution finances women processing shea butter through microcredits of 200,000 to 500,000 FCFA. In Senegal, COFINA mobilised €25 million from the EIB to refinance hundreds of small agricultural projects.
• Practical advice: start with a small loan to build your credit history, join an association or cooperative that can facilitate loan approval, and be diligent in your repayments (reputation matters greatly in microcredit).

3. Public funds and international donors

Several public and international bodies offer financing dedicated to agro-industry in West Africa. The African Development Bank (AfDB) supports numerous projects through credit lines to local banks or agricultural financing programmes (for example the ENABLE Youth programme for agro-entrepreneurs). Its African Development Fund (ADF) window offers concessional loans to governments, which can then support SMEs.

For its part, the European Investment Bank (EIB) is investing increasingly in the African private sector: in Côte d’Ivoire, the Team Europe initiative announced in 2025 an envelope of several tens of millions of euros through the Global Gateway programme to support Ivorian agri-food SMEs and cooperatives, combined with technical assistance. The European Union (EU) also finances grants and calls for projects (for example the DESIRA programme for agroecology, or the Archipelago programme for SME training and financing).

Among bilateral donors, there is Proparco (the private sector arm of the Agence Française de Développement), the IFC (the World Bank’s private sector branch) and the Islamic Development Bank.

Proparco has made food security a priority: in 2024, it mobilised €191 million to support African agricultural value chains and granted a loan of €2 million to NutriK in Nigeria, a producer of nutritional foods.

These institutions intervene either directly (loans or equity stakes in SMEs) or indirectly through financial intermediaries or investment funds.

• Access criteria: vary according to the programme. For EU/IFAD grants: innovative projects with strong social/environmental impact, a solid application responding to a call for proposals. For AfDB/EIB loans via banks: formal business, structuring project, economic viability and compliance with the donor’s priorities.
• Concrete example: the IFC’s AgriSME programme offers financing of $50,000 to $500,000 to agri-food SMEs through local partners. The EU Delegation in Senegal co-finances projects in export value chains (mango, horticulture) by subsidising post-harvest equipment.
• Practical advice: regularly monitor calls for projects from donors (official websites, ministries, specialist press), seek support in preparing your application (from a consultant, a chamber of commerce), and align your project with the stated objectives (job creation, gender equality, sustainable development) to maximise your chances.

4. Leasing

Leasing — or credit-bail — is a rapidly growing equipment financing solution. It allows a business to immediately use a piece of equipment (agri-food machinery, tractor, refrigerated vehicle, etc.) by renting it over a defined period, with the option to purchase it at the end of the contract.

In West Africa, leasing opens access to mechanisation and modernisation without having to advance the full cost. For example, the Senegalese company Locafrique, a pioneer in the sector, has been financing tractors, harvesters and industrial facilities through leasing for decades.

In 2022, Locafrique concluded a 13 billion FCFA (US$24 million) partnership with the West Africa Trade & Investment Hub (USAID) to accelerate financial inclusion for Senegalese agricultural stakeholders.

This programme targets 440 micro-entrepreneurs across several regions of Senegal, enabling them to obtain equipment through leasing at a time when agricultural bank loans accounted for less than 5% of the national banking portfolio.

Leasing offers several advantages: no mortgage collateral is required (the financed equipment serves as security), procedures are faster than a conventional loan, and financing is often in local currency, adapted to seasonal revenues. It is equally well suited to cooperatives wishing to acquire shared equipment (e.g. a rice husker or shared refrigerated truck) as to established SMEs looking to increase their production capacity without straining their cash flow.

• Access criteria: demonstrate the ability to generate revenue to cover lease payments (business plan with projected cash flow), an initial deposit generally of 10 to 20% of the equipment cost, and possibly insurance on the financed equipment.
• Concrete example: in Côte d’Ivoire, Alios Finance offers leasing for small cold rooms to pineapple cooperatives, with a 3-year contract. In Senegal, Locafrique enabled a dairy to equip itself with a modern pasteurisation line without a direct bank loan, with lease payments calibrated to its monthly yoghurt production.
• Practical advice: identify precisely the equipment to be financed and its impact on your output, seek competitive quotes from several leasing companies to obtain a competitive rate, and make sure you fully understand the terms of the contract (duration, residual value, equipment maintenance) before signing.

5. Crowdfunding

Crowdfunding, or participatory financing, is an alternative and innovative way to finance agri-food projects. Through the internet, an SME can appeal to the general public — including the African diaspora abroad — to raise funds in the form of donations, participatory loans or equity investments.

In West Africa, several platforms have emerged in recent years. For example, the Ivorian start-up Seekewa allows “supporters” from around the world to back small farmers by purchasing redeemable electronic vouchers, entitling them to discounts on the financed production.

In Nigeria, the platform Farmcrowdy connects individual investors with local farmers: by sponsoring a growing season, contributors receive a share of the profits at harvest. Since its launch, Farmcrowdy has financed more than 7,000 farmers for a total of nearly $6 million, demonstrating the potential of this model.

This financing method offers the advantage of flexibility (you define the target amount and the rewards offered) and visibility (your project gains exposure among contributors). However, the success of a crowdfunding campaign depends heavily on your ability to mobilise an online community and earn the trust of internet users.

Amounts raised generally remain modest for a first campaign (a few thousand to a few tens of thousands of euros), making crowdfunding more of a complement than a standalone financing solution. Nevertheless, for a specific need — purchasing a drying machine or funding an organic certification — it can suffice, while also building a loyal base of supporters.

• Access criteria: a project with broad appeal capable of reaching contributors (strong social or environmental impact, or innovation highlighted), transparency on the use of funds, ability to communicate regularly (photos, videos, updates) during the campaign.
• Concrete example: the pan-African platform Fiatope helped finance a dried fruit processing unit in Senegal through contributions from the diaspora (donation with a reward of product parcels). In Benin, young entrepreneurs raised funds on MiiMOSA to establish an organic pineapple plantation in exchange for visits and fruit baskets for contributors.
• Practical advice: invest in your project presentation (quality video, engaging narrative), target your personal network and your country’s diaspora first to kick off the fundraising, and honour your commitments (rewards, repayments) to build credibility for any future campaigns.

6. Venture capital and private investors

Venture capital and private investment are aimed at agri-food businesses with strong growth potential. Unlike loans, this involves equity participation: an investment fund or a business angel provides fresh capital in exchange for a share of your business. This equity financing is particularly suited if you are aiming for rapid expansion (new export markets, significant production increases, technological innovation in agritech, etc.).

In 2025, several specialised funds are emerging in West Africa. For example, WIC Capital in Dakar invests exclusively in women-led SMEs in Senegal and Côte d’Ivoire. Since its creation in 2019, WIC Capital has mobilised nearly 750 million FCFA ($1.4 million) to finance 7 women-led businesses, including local agri-food companies. It has, for instance, taken a stake in the Senegalese company Acasen (cereal processing) to help it increase its production capacity.

Other generalist or sector-specific funds are investing in West African agri-food: the Investisseurs & Partenaires (I&P) fund supports local SMEs with investment tickets of around €300,000 to €3 million; Partech Africa and TLcom have backed Nigerian agri-tech start-ups; and local development capital firms such as Comoé Capital in Côte d’Ivoire and Teranga Capital in Senegal are betting on emerging agri-food businesses. In addition to capital, these investors typically provide mentoring and a network, which are valuable for structuring the business and accessing new markets.

• Access criteria: formal business with clear governance, strong growth and profitability potential, a clear competitive advantage (innovative product, unique market access, etc.), and often a positive impact (job creation, sustainable innovation) highlighted. Prepare professional financial statements and a compelling pitch deck.
• Concrete example: in Ghana, the Acumen fund invested in Peeledsnacks, a dried fruit processing SME, to help it export to Europe. In Nigeria, Thrive Agric raised funds from private investors to expand its digital farmer financing platform.
• Practical advice: target investors suited to your size and sector (some funds favour sustainable agriculture, others technology start-ups), work on your pitch by highlighting your traction (customers, contracts) and the management team, and be prepared to give up a share of the capital and control of the business in exchange for financing (negotiate balanced terms).

7. Cooperatives and pooled financing

Organising as a cooperative or a grouping of stakeholders can greatly facilitate access to financing in the agri-food sector. By joining forces, small producers or processors increase their critical mass and credibility in the eyes of financiers.

A well-structured agricultural cooperative with transparent accounts and democratic governance is more reassuring than a large number of isolated individuals. As a result, banks and development projects are willing to lend through cooperatives: credit is then granted to the organisation, which redistributes it or uses it for shared services (bulk input purchases, shared equipment, etc.).

For example, in Côte d’Ivoire, many cocoa cooperatives have secured campaign pre-financing from banks through their contracts with exporters — each member receives advances for the harvest, repaid upon the sale of cocoa.

Similarly, in Togo, the National Inclusive Finance Fund (FNFI) relies on local savings and credit cooperatives to grant micro-loans to farmers and young entrepreneurs (more than one billion FCFA distributed in rural areas in 2024 alone).

Savings and credit mutuals (often called COOPECs) have played a historic role in agricultural financing in rural areas. These are structures where producers pool their savings, which are then lent to members on favourable terms. This modernised tontine system has proven its worth in financing agricultural campaigns or small investments (motorcycle-tricycles, irrigation motor pumps, etc.), particularly for those without access to banks.

Moreover, belonging to a group can open the door to public support (subsidies, equipment grants) reserved for professional organisations. Sector bodies and cooperative unions can negotiate with governments or donors for dedicated credit lines for their value chains: this has been seen with rice in Mali and sesame in Burkina Faso, where specific guarantee funds were created to encourage banks to lend to members of these value chains.

• Access criteria: be a fully paid-up member of a cooperative or economic interest group (GIE) (dues up to date, active participation), collective projects aligned with the cooperative’s purpose. The cooperative must also be formally constituted and maintain a good reputation (no outstanding previous loan arrears).
• Concrete example: in Senegal, the Saint-Louis Market Gardeners’ Cooperative negotiated an agreement with a local bank to finance greenhouses: each member farmer was able to benefit because the cooperative partially guaranteed the loans. In Niger, the warrantage system (inventory credit) organised by millet producer cooperatives allows members to obtain cash advances by storing their harvest as collateral.
• Practical advice: if you have not already done so, join a cooperative in your value chain or create one with other complementary entrepreneurs (production, processing, export), invest time in structuring your organisation (management and accounting training), and develop bankable collective projects (a collection centre, a shared workshop) that will attract financing more easily than individual initiatives.

Chart: Estimated trends in agri-food financing in West Africa (2020–2025).

This chart illustrates the general upward trend in financing available to West African agri-food SMEs.

Years
Estimated amounts (USD billion)

2020
2021
2022
2023
2024
2025

0
2
4
6
8

Estimated trends in agri-food financing in West Africa (2020–2025)

Between 2020 and 2025, financial commitments (of all types) to this sector are estimated to have increased significantly, reflecting a growing awareness of the importance of agri-food in regional economic development. Nevertheless, despite this progress, the gap between financing needs and amounts actually allocated remains significant, hence the value of combining several of the solutions presented above to successfully finance your projects.

Frequently asked questions

Why are banks reluctant to lend to agri-food SMEs?

Banks often perceive agri-food as a risky sector. The revenues of agricultural operations can be irregular (depending on seasons and climatic conditions), and many small businesses do not offer sufficient guarantees (land titles, formal financial history).

Furthermore, the cost of monitoring a large number of small loans is high for a bank. As a result, traditional commercial banks often prefer to finance sectors deemed more predictable. Initiatives such as agricultural guarantee funds and training bankers in the specificities of the sector aim to reduce this reluctance.

Are there grants or public subsidies for exporting agri-food SMEs?

Yes, several. At the international level, European Union programmes (via its Delegation in each country) finance projects aimed at improving the quality and competitiveness of agricultural export products. For example, calls for projects are regularly launched to co-finance processing units, training in European standards, etc.

The African Development Bank and institutions such as IFAD also offer credit lines or grants through governments to support agri-SMEs. At the national level, each country often has development funds (COVID-19 recovery funds, sector-specific funds) or mechanisms such as export promotion agencies that can provide assistance (for example, partial coverage of the cost of organic or CE certification, or a subsidy to participate in an international trade fair).

How does leasing work and is it more advantageous than a loan?

Leasing works like a rental with an option to purchase. A leasing company buys the equipment you need (machine, vehicle, etc.) on your behalf and rents it to you for a monthly or quarterly payment over a set period. At the end of the contract (for example 3 or 5 years), you have the option to buy the asset for a residual value agreed in advance.

The advantage over a conventional loan is that you do not have to pay the full price upfront, and often no collateral is required other than the equipment itself.

This is particularly advantageous when your cash flow is limited. Additionally, lease payments can be deducted as operating expenses, which offers a tax advantage. On the other hand, over the full term, leasing may end up slightly more expensive than an outright purchase (including financing costs), and you do not own the asset until you exercise the purchase option.

Is crowdfunding really effective for financing an SME in West Africa?

Participatory financing can be effective, but it depends on the amount sought and the entrepreneur’s ability to mobilise a community. For moderate financing needs (a few thousand to a few tens of thousands of euros), it is a perfectly viable solution. It has successfully financed many small projects (artisan equipment, production campaigns, prototypes, etc.).

However, for larger amounts (for example, building a factory costing several million), crowdfunding alone will generally not be sufficient. It can then serve as a lever to demonstrate public support and attract other investors. Another challenge in West Africa is the reliability of internet access and online payment methods, but through the diaspora and international platforms, this obstacle can be worked around.

In summary, crowdfunding works best as a complement and a communications springboard, rather than as a standalone source of financing.

How can I maximise my chances of obtaining financing, across all solutions?

Several recommendations apply regardless of the type of financing sought. First, structure your business properly: clear accounts, an appropriate legal status (for example, converting to a limited liability company if not already the case), and quality certifications where possible will greatly facilitate the process.

Next, invest in your presentation file (detailed business plan, market studies, realistic financial projections), as this is your calling card with financiers.

Do not hesitate to seek training or support (from a mentor, a consultancy firm, an accelerator programme) to strengthen your application. In addition, diversify your contacts: meet your local banker, but also fund managers and development NGOs, and participate in entrepreneur pitch competitions — each channel can open an unexpected door.

Finally, demonstrate perseverance and professionalism in all your dealings: a rejection is not necessarily final — improve your project and resubmit it later. The credibility and trust you build will be your greatest assets in convincing donors of your agri-food ambitions.

---

© 2025 – Informational article produced for the leaders of exporting agri-food SMEs in West Africa.

Sources