Ecobank and the Alliance for a Green Revolution in Africa (AGRA) have signed a new partnership agreement aimed at expanding financing access for African farmers, cooperatives and agribusinesses as institutions intensify efforts to strengthen the continent’s food systems and agricultural trade.

The memorandum of understanding was signed on May 11 during the Africa Forward Summit in Nairobi and focuses on improving access to finance across agricultural value chains through tailored lending products, risk-sharing mechanisms and blended finance structures.

Under the agreement, Ecobank and AGRA will collaborate to develop financing solutions targeting smallholder farmers and small and medium-sized agribusinesses operating across production, processing and trade activities. The partnership will support working capital financing, equipment loans and trade finance products designed specifically for agriculture-focused enterprises.

The initiative also aims to reduce the risks traditionally associated with agricultural lending in African markets by introducing guarantee frameworks and blended finance instruments capable of attracting greater private sector participation.

Ecobank Group Executive Director for Commercial and Consumer Banking, Anup Suri, said agriculture must increasingly be viewed as a commercially viable growth sector rather than a subsistence activity.

The agreement reflects a broader shift among African financial institutions and development agencies toward positioning agriculture as a strategic pillar for industrialisation, trade expansion and economic resilience across the continent.

The partnership places significant emphasis on supporting women-led and youth-led agribusinesses through the integration of Ecobank’s Ellever programme with AGRA’s Value4HER and YEFFA initiatives. Financial exclusion continues to disproportionately affect women and young entrepreneurs across Africa’s agricultural sector, limiting their ability to scale operations and participate in formal markets.

The signing follows another major financing announcement made during the summit, where Proparco and Ecobank secured a three-year €300 million agreement aimed at supporting African agricultural value chains. Part of those resources is expected to be channelled through initiatives such as the Ecobank-AGRA partnership.

The latest financing commitments come as African governments and development finance institutions face increasing pressure to strengthen domestic food production systems amid rising climate shocks, global commodity volatility and growing food import dependence.

According to the African Development Bank, agriculture employs more than half of Africa’s workforce, yet the sector continues to face severe financing constraints, particularly among smallholder producers and agro-processing businesses.

Trade finance has also emerged as a major concern within regional agricultural discussions. During the summit, Proparco launched the Africa AgriTrade Coalition, a platform bringing together 16 financial institutions with combined assets of nearly €400 billion to help address Africa’s estimated $50 billion agricultural trade finance gap.

The Ecobank-AGRA partnership additionally prioritises climate-resilient agriculture and green financing mechanisms as African food systems face increasing disruption from droughts, floods and changing weather patterns.

AGRA President Alice Ruhweza described African food systems as one of the continent’s most significant economic opportunities, noting that stronger investment in sustainable agriculture could support long-term food security, industrial growth and regional trade integration.

Despite growing financing commitments, implementation challenges remain. Financial institutions continue to cite fragmented agricultural value chains, inadequate rural financial infrastructure and weak collateral systems as barriers to scaling agricultural lending across the continent.

However, the latest agreements signal a growing recognition among lenders and policymakers that agriculture is increasingly central to Africa’s economic transformation, climate resilience and long-term development strategy.