African Banks, AU Seek Affordable Finance to Unlock Livestock Sector Growth
African banks, policymakers and the African Union are pushing for a continent-wide single-digit financing facility to boost livestock investment, strengthen pastoral economies and improve food security.
By Raymond Akorede
African financial institutions, policymakers and development partners are advocating the creation of a continent-wide low-interest financing facility to accelerate investment in the livestock sector, describing affordable credit as essential to unlocking Africa’s vast pastoral economy.
The proposal was tabled during the inaugural African Pastoral Markets Forum Day, organised by the African Union Inter-African Bureau for Animal Resources (AU-IBAR) in Kenya, where stakeholders agreed that limited access to affordable finance remains one of the biggest barriers to livestock sector transformation.
Participants at the forum—including commercial banks, development finance institutions (DFIs), agribusiness leaders and development organisations—said many livestock producers and businesses struggle to access financing despite the sector’s enormous economic potential.
Speaking during a panel session, Dr. Kelvin Mashisia Shikuku, Senior Scientist and Development Economist at the International Livestock Research Institute (ILRI), said Africa’s pastoral systems sustain millions of livelihoods and contribute significantly to agricultural output across the continent, yet investment has remained far below what is required.
According to Shikuku, the challenge is not a shortage of investment capital globally but the absence of financing mechanisms that effectively channel funds to livestock producers, cooperatives and agribusinesses.
He called for innovative financing models capable of attracting private investment while coordinating efforts among governments, financial institutions and development partners to deliver long-term, market-driven solutions.
Experts at the forum noted that access to concessionary loans with single-digit interest rates would enable livestock farmers to invest in modern production systems, improve animal health, expand processing capacity and strengthen regional trade.
They also identified climate resilience as a priority, urging increased investment in livestock insurance, improved grazing management, veterinary services, transport infrastructure, livestock corridors and digital market information systems to protect producers from climate-related shocks.
Stakeholders further emphasised that expanding access to finance should go hand-in-hand with policies that promote peace, security and social inclusion within pastoral communities, creating an environment that encourages sustainable investment across Africa’s livestock value chains.
The forum concluded with a call for stronger collaboration between governments, financial institutions and development partners to establish financing frameworks that can drive productivity, improve food security and position Africa’s livestock industry as a major contributor to economic growth and intra-African trade.
