OECD’s 2026 Farm Report Puts Africa’s Agricultural Spending Under Scrutiny

The Organisation for Economic Co-operation and Development (OECD) has raised concerns about government agricultural spending in its Agricultural Policy Monitoring and Evaluation 2026 report.

Global agricultural support exceeded $950 billion in 2025, nearly 15% higher than in 2023. Almost half of the support provided between 2023 and 2025 came through measures the organisation identified as potentially highly distortive to production and trade.

Across the 56 countries assessed, public spending on agricultural infrastructure, research and other general services averaged $118 billion annually during 2023–2025.

This represented 2.4% of agricultural production value, down from 4.6% in the early 2000s. Infrastructure accounted for approximately 47% of the expenditure, while agricultural research and innovation received 23%.

The African Development Bank estimates that agricultural small and medium-sized enterprises face an annual financing gap of $180 billion.

The shortage affects businesses involved in farming, food processing and distribution, where access to credit limits investment in equipment, storage and production capacity.

Only two African countries, Egypt and South Africa, are covered individually in the OECD’s 2026 report. Egypt was added for the first time this year, while major agricultural economies such as Nigeria, Kenya and Ghana remain outside its country assessments.

Their government budgets reveal additional spending priorities, including fertiliser subsidies, agricultural credit and infrastructure programmes, that are not captured in the OECD’s country-level comparison.

African Farm Budgets Reveal Where Government Funding Goes

Nigeria’s 2026 federal budget allocates approximately ₦1.45 trillion to agriculture, representing 2.81% of total federal expenditure, according to the Nigerian Institute of Social and Economic Research (NISER).

About 90% is designated for capital spending, covering irrigation, mechanisation, food reserves and agricultural processing. NISER identifies funding gaps in agricultural extension, climate resilience and support for smallholder farmers.

Fertiliser subsidies account for KSh 18 billion of Kenya’s KSh 62.96 billion agriculture and food-security allocation for 2026/27. The government has budgeted another KSh 2 billion for seed subsidies, KSh 2.47 billion for sugar-sector reforms and KSh 250 million for agricultural technology innovation centres. The figures are approved allocations, with programme expenditure yet to be established.

Ghana’s 2026 budget assigns GH¢2.2 billion to the Ministry of Food and Agriculture. The government has also provided GH¢828 million for agricultural enclave roads, GH¢690 million to begin operating Farmer Service Centres and GH¢200 million for the National Food Buffer Stock Company.

A separate GH¢6.9 billion financing programme for oil palm development is planned through 2032, although the amount committed to individual projects has not been disclosed.

Ghana’s Ministry of Finance reported releasing GH¢1.677 billion to the agriculture ministry in 2026, equivalent to 85% of its approved goods, services and capital budget.

The transfer confirms that a substantial share of the ministry’s funding has been released, but programme-level expenditure and completed projects were not detailed in the announcement.

Development Banks Expand Financing for Agricultural Infrastructure

The African Development Bank approved a $140 million loan in June 2026 for Uganda’s Multipurpose Water for Climate Resilient Irrigation Development and Agro-Industrialization Programme.

The $207 million project will develop irrigation and water distribution networks covering more than 4,000 hectares in the Bunyoro subregion during its first phase.

A further 13,000 hectares is envisaged under the second phase, with additional financing expected from the OPEC Fund, the Ugandan government and other partners. Construction had not been confirmed in the bank’s approval announcement.

In Senegal, the World Bank approved an additional $140 million in July for transport infrastructure serving agricultural production areas in the north and centre of the country.

Total project financing has reached $470.8 million, following earlier work that delivered 414 kilometres of constructed or upgraded roads.

The latest phase covers another 171 kilometres of paved roads and 104 kilometres of laterite tracks, alongside planned storage facilities, processing platforms and market infrastructure. Senegal’s Road Works and Management Agency is responsible for implementation.

Madagascar’s Lower Mangoky Irrigation Area Extension Project received approval for its second phase in March 2026, with financing agreements signed in May.

The African Development Bank committed 34.83 million units of account through two concessional lending facilities, supplemented by a government contribution of 1.74 million units of account.

Completion is scheduled for December 2030. The published project record lists the operation as approved without confirming the start of construction.

Zambia secured a $100 million World Bank credit in July for its Irrigated and Sustainable Agriculture for Transformation Project. The Ministry of Agriculture will implement irrigation development, agricultural knowledge services and market-access programmes through December 2031.

The credit has been signed, although the available World Bank financial listing records no disbursement. The project has therefore secured financing, with expenditure and delivery still to be established.

African Food Processors Attract New Private Investment

Olam Agri announced plans on November 4, 2026, to invest approximately $400 million in African food and animal-feed processing through 2028. The expansion includes feed mills in Nigeria, Cameroon and Côte d’Ivoire, alongside additional pasta production in Ghana.

A proposed 300,000-tonne poultry-feed facility in Cameroon is scheduled to begin operations in early 2028. The company also plans to add 850 trucks to its Nigerian distribution fleet.

At full capacity, the new feed mills are expected to purchase more than 500,000 tonnes of maize and soybeans annually from over 130,000 smallholder farmers.

Robust International secured a $75 million debt facility in February to finance a cashew-processing plant in Nigeria’s Ogun State. GuarantCo provided credit enhancement for the transaction, arranged through Symbiotics, with M&G Investments subscribing to the notes.

The plant will increase the company’s processing capacity from 100 to 220 tonnes daily and source cashews from approximately 10,000 farmers. GuarantCo estimates that Nigeria processes less than 10% of its annual raw cashew production domestically.

A second $20 million financing agreement in August will support Robust International’s development of a cashew-processing plant in Toumodi, Côte d’Ivoire, with annual capacity of 15,000 tonnes.

The investment includes aggregation warehouses in Bouaké and Toumodi capable of handling a combined 44,000 tonnes annually. GuarantCo provided a payment guarantee of up to $23 million, with institutional and impact investors subscribing to the financing instruments.

Sunbeth Global Concepts announced in May that construction was underway on cocoa and cashew processing facilities in Nigeria, with planned annual capacities of 70,000 tonnes and 80,000 tonnes, respectively.

The agricultural exporter targets March 2027 for commissioning. Its announcement did not disclose the investment amount or financing arrangements.

Africa’s Agricultural Investment Plans Face Implementation Deadlines

The International Finance Corporation disclosed a proposed $15 million loan for Dorado FZCO’s cashew-processing expansion in Côte d’Ivoire, alongside $3 million in sponsor equity.

The investment would support a factory in Yamoussoukro with annual processing capacity of 50,000 tonnes, developed by Dorado’s local subsidiary, Bluejay Nuts SARL. The IFC’s October 10, 2026 project record listed the financing agreement as pending signature.

Nigeria’s Sustainable Power and Irrigation Project has secured a $500 million financing commitment from the International Development Association.

Government development cooperation records show that $32 million had been disbursed by the second quarter of 2026, representing approximately 6% of the commitment.

The Federal Ministry of Water Resources is implementing the programme, which covers irrigation development, dam safety and hydropower planning, with completion scheduled for December 2029. 


Dubai-based Heramb Group disclosed plans in August to assess investment in sesame hulling, shea butter extraction and groundnut crushing facilities within Nigeria’s Special Agro-Industrial Processing Zones in Kwara and Ibadan.

The proposed facilities remain subject to assessments of raw-material availability, electricity supply, transport costs and export access. No final investment decision, financing agreement or construction schedule was disclosed.

Dorado’s processing investment still requires a signed financing agreement, while Heramb has yet to commit capital to its proposed facilities.

Nigeria’s irrigation programme has a longer delivery timetable, with most of its financing commitment still undisbursed as of the latest cited reporting period.

These outstanding decisions and disbursements will determine how quickly the planned facilities and agricultural services reach producers and processors.