AfDB grants USD 260M loan to boost agriculture in DRC

DRC – The African Development Bank Group (AfDB) has approved a USD 260.4 million loan to the Democratic Republic of Congo (DRC) to support the Project to Develop Value Chains, a key component of the Agriculture Transformation Program (PADCV-PTA).

This initiative aims to improve food self-sufficiency and reduce the country’s reliance on large-scale food imports.

The total project cost is USD 311.6 million, with the African Development Fund contributing USD 250.4 million and the Transition Support Facility adding USD 10 million.

The DRC government and beneficiaries will provide the remaining USD 51.2 million. The project focuses on increasing the production of crops such as cassava and other staple crops including maize, rice and soya.

“This project will significantly reduce our food imports and improve our resilience to external shocks,” said Serge N’Guessan, the AfDB’s Director General for Central Africa. The DRC’s food imports amounted to USD 3 billion in 2023, which represented 19 percent of the national budget.

The initiative will use climate-resistant seeds to plant 295,000 hectares of cassava, maize, soya, and rice. It will establish 1,600 farmer field schools and demonstration plots to promote climate-smart farming techniques.

The project also plans to develop irrigation sites. Rice-growing areas, for instance, stand to benefit as it enables intensive production levels with at least two cycles per year.

Inputs will be provided to producers on credit at the beginning of the cropping season, repayable at harvest time.

This approach aims to build working capital and facilitate long-term access to necessary inputs and equipment for pre-processing agricultural produce.

To improve access to markets, the project will upgrade 600 km of rural tracks, opening up production basins and facilitating transportation to consumption areas.

The project will also organize value chain stakeholders into cooperative companies, enabling them to benefit from economies of scale through group orders and sales.

The initiative will enhance the bargaining power of small-scale producers, allowing them to form ‘win-win’ partnerships. Additionally, a shared-cost financing mechanism will be established to facilitate access to funding.

The project will strengthen the capacity of national agricultural research and seed system stakeholders, aiming to rebuild the national seed capital.

It will be implemented in six provinces: Kongo Central, Kwango, Maï-Ndombe, Kasaï Oriental, Lomami, and South Kivu. These areas are critical supply basins for major cities and can also supply neighboring countries.

Approximately 900,000 farming households, including internally displaced people, will benefit directly from the project. The project is expected to increase crop yields by 80 percent, boost agricultural production by 1.68 million tonnes per year, and reduce the DRC’s food imports by $500 million annually. It will also enhance food security for around 21 million inhabitants in Kinshasa, Mbuji-Mayi, and Bukavu.

“The African Development Bank is a strategic partner of the DRC, whose top authorities have decided to make agriculture the priority sector for the country’s development,” N’Guessan emphasized.

This project aligns with the National Food and Agriculture Pact, reflecting the nation’s vision for sustainable agricultural growth.

Beneficiaries include government services, private organizations, decentralized regional bodies, and women’s and youth organizations. The project will also foster regional integration between the DRC and Angola through trade in agricultural products.

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