SADC seeks US$2.1B to modernize its agri-food systems

SOUTHERN AFRICA – The Southern African Development Community (SADC), in partnership with the Food and Agriculture Organization (FAO), has presented a US$2.1 billion investment plan to boost and modernize agriculture across its member states.

The goal is to build stronger, climate-resilient food systems and improve trade within the region.

The announcement came during the FAO Hand-in-Hand Investment Forum held in Rome alongside the World Food Forum 2025.

In a statement released on Monday, October 20, 2025, SADC outlined four key areas for investment: irrigation, agricultural mechanization, agro-processing, and trade facilitation.

According to SADC, the proposed funding will be distributed as follows: US$600 million for irrigation, US$300 million for mechanization, US$400 million for agro-processing, and US$800 million for trade facilitation.

The community said the investments aim to stimulate “bankable projects capable of attracting private investors, development banks, and technical and financial partners.”

SADC officials explained that these projects align with the regional agricultural priorities validated during a workshop held in Harare in September.

The focus, they said, is to raise productivity, secure food supplies, and support cross-border trade within Southern Africa.

Agriculture remains a vital sector for food security and the regional economy. However, it faces significant pressure from climate change, land degradation, and poor infrastructure.

The recent El Niño-related drought during the 2023–2024 season hit the region hard, causing food shortages and prompting countries such as Malawi, Zambia, Zimbabwe, and Lesotho to declare states of disaster.

The SADC Regional Vulnerability Assessment Programme reported that over the past five years, more than 40 million people in Southern Africa have faced food insecurity each year.

The organization stated that “strengthening early warning capacities, improving climate-resilient agriculture, and promoting better coordination between countries are key to reversing this trend.”

Expected impact

At the forum, SADC shared projections showing that the investment portfolio could generate an internal rate of return of about 20 percent and raise average income by US$223 per person.

The projects are expected to directly benefit 7.8 million people and indirectly impact over 42 million residents across the region.

SADC officials emphasized that the plan builds on existing frameworks such as the Regional Agricultural Policy (RAP), the Regional Agricultural Investment Plan (RAIP), and the Food and Nutrition Security Strategy (FNSS 2015–2025).

FAO representatives expressed support for the initiative, noting that “these investments can drive real progress in regional food systems if governments and partners maintain strong collaboration and accountability.”

The meeting in Rome also highlighted ongoing regional discussions around resource mobilization and private-sector involvement.

Stakeholders agreed that strengthening agricultural value chains will help the region reduce import dependence and support sustainable food production in the face of climate challenges.

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