Despite frequent promises to develop agriculture and promote farmers’ interests in Africa, the share of credit going to the sector remains small, mostly owing to factors outside of it.
For one, lenders have found it profitable to focus on other areas, and authorities across the continent have been tinkering with interest rate controls without success, making it expensive for farmers to borrow. Whereas some commercial banks maintain agricultural credit portfolios, somehow these funds are diverted to other competing areas, sources say.
