Policymakers, investors, and civil society leaders met in Dakar on August 29 to tackle a key challenge for the continent: financing the shift to agroecological entrepreneurship.

The workshop, held on the sidelines of the African Food Systems Forum (AFSF), explored how to better fund small and medium-sized businesses that focus on sustainable agriculture.

Agroecological enterprises (AEEs), which are often rooted in local communities and committed to sustainable practices, have long struggled to get loans from traditional banks. Advocates for these businesses see them as a credible alternative to the intensive agricultural models that have been favored for years.

Hawabai Abdulla of Tanzania’s Agricultural Development Bank argued that funding for AEEs must go beyond simple loans. “Financing must be combined with technical assistance and awareness-raising, so that farmers, entrepreneurs and markets alike understand the value of initiatives that deliver health, economic and environmental benefits,” she said.

Abdulla stressed that national agroecology strategies will only succeed if all key players—banks, governments, and civil society—work together on a common framework.

Proving profitability with data

Hans von Zinkernagel, a project officer at the Biovision Foundation, which organized the event, called agroecology financing “a field still under construction.” He emphasized that the financial sector needs solid data to be convinced.

“We must demonstrate with solid data that agroecological enterprises are viable, profitable and capable of delivering strong social and environmental impact,” he said.

Biovision plans to release a report in early 2026 that will document the profitability of these sustainable models. The goal is to prove that investing in agroecology is a smart business decision that also addresses urgent climate and food security challenges.

Ruth Nabaggala of the Alliance for Food Sovereignty in Africa (AFSA) offered firsthand evidence of the impact. “They are improving livelihoods, creating jobs, ensuring healthy diets and protecting the environment,” she said of the 300 AEEs she works with. She added that agroecology offers a “more sustainable and fairer profitability than models that harm people and nature.”

Participants concluded the first day with a consensus on the need for hybrid financing models that combine traditional credit with technical support and public policies. The hope is to create an integrated ecosystem where agroecological businesses can thrive and play a central role in transforming Africa’s food systems.

ARD/ac/Sf/lb/abj/APA