AFRACA Masterclass Targets Climate-Resilient Agricultural Finance

The AFRACA masterclass has brought financial sector professionals from across Africa to Lagos to explore climate resilience and artificial intelligence in agricultural finance.

The week-long programme, organised by the African Rural and Agricultural Credit Association (AFRACA) with NIRSAL Plc and other partners, began on 19 August. Participants come from Nigeria, Uganda, Ghana, Tanzania, the Democratic Republic of Congo, Kenya and other African countries.

Representatives from four central banks are attending, alongside professionals from commercial banks, insurance firms, development finance institutions and microfinance banks.

Opening the programme, AFRACA Secretary-General Ngo Bakang Anny Caroll welcomed the return of the organisation’s capacity-building programme to Nigeria for the first time since 2017.

She said the timing was important as climate change continues to put pressure on Africa’s food systems. She also stressed the role of financial institutions in helping the continent produce enough food sustainably while remaining competitive in the global economy.

NIRSAL Plc was represented by a delegation led by Executive Director, Operations, Ewaen Imohe. He delivered a welcome address on behalf of Managing Director and Chief Executive Officer Sa’ad Hamidu.

Hamidu said the AFRACA masterclass was addressing a key problem in African agricultural finance: the connection between knowledge, risk and lenders’ willingness to fund the sector.

He said stronger agricultural financing would require financial institutions to continually improve the systems and skills they use to source, structure, deploy and manage funds.

“At NIRSAL, we have always maintained that agriculture, especially in sub-Saharan Africa, is not underfinanced because opportunities do not exist, but because the risks have not been sufficiently understood, measured, appropriately priced, and managed,” Hamidu said.

He explained that NIRSAL had developed financing systems and frameworks to organise agricultural value chains, identify risks and give lenders greater confidence in the sector.

NIRSAL approved Credit Risk Guarantees for loans exceeding N100 billion in 2025 and had already exceeded that amount in 2026, year-to-date. The guaranteed funding supports farmers, processors, aggregators, exporters and other businesses across several agricultural value chains.

Hamidu also pointed to the rising role of non-interest financial institutions, which accounted for more than half of the loans guaranteed by NIRSAL during the first six months of 2026. He said this showed how effective risk-sharing structures could attract different sources of capital into agriculture.

The first major focus of the AFRACA masterclass is inclusive finance for climate resilience. Participants are learning how to assess climate risks and develop projects that can attract financing for adaptation and mitigation.

Sessions cover climate-risk assessment, adaptation and mitigation, climate-rationale development, green project structuring and access to specialised climate-finance facilities.

Dr Chris Myungu of the Alliance of Bioversity International & CIAT, a CGIAR partner in the programme, introduced participants to the Africa Adaptation Atlas and CGIAR climate-rationale outputs. These tools show how climate data, research and evidence can guide investment in more resilient agricultural projects.

The second major focus is artificial intelligence for financial services and agricultural finance. Discussions are examining how AI can improve risk assessment, transaction analysis and financial decisions within the agricultural sector.

Hamidu urged participants to look beyond the excitement surrounding AI and concentrate on practical uses that can improve lending decisions and widen access to capital.

He also highlighted opportunities to combine technology with climate finance, blended finance, grants and other innovative funding models to support African agriculture.

The programme reflects the continuing partnership between AFRACA and NIRSAL. AFRACA provides a platform for knowledge-sharing across the continent, while NIRSAL brings experience in agricultural risk-sharing, value-chain development and finance facilitation.

The AFRACA masterclass continues in Lagos with technical sessions and practical discussions on AI applications for financial services and agricultural finance.

Can climate finance and AI help African financial institutions unlock significantly more funding for farmers and agricultural businesses?