The money will be used to address current drought challenges arising due to climate change.
The African Development Bank (AfDB) will avail $1.1 billion to five African countries, including Kenya, to address challenges arising from climate change.
The pan-African lender's president Akinwumi Adesina made the announcement Wednesday during the Feed Nigeria Summit in Lagos.
Dr Adesina said the money would be used to address the current drought challenges in Nigeria, South Sudan, Kenya, Ethiopia and Somalia.
He also urged African countries to industrialise the agricultural sector and its value chain in order to transform their economies.
Dr Adesina called on governments to provide incentives to food and agribusiness firms in rural areas through establishment of staple crop processing zones.
“These staple processing zones will transform rural Africa into new zones of economic prosperity,” he said.
According to the AfDB chief, staple crop processing zones, which were vast in agro industries zones, would encourage food industries’ operators to establish factories in rural areas.
“Africa has no business importing food. Africa should be a net exporter of food.
“Agriculture in Africa must move away from being treated as a social sector for managing poverty to a business of creating wealth,” he said.
Dr Adesina said AfDB had committed $24 billion investment to agriculture in Africa in the last 10 years.