Stakeholders meet to chew Agriculture Financing Strategy
Pauline Dikuelo | Tuesday June 30, 2026 12:45
The consultative workshop, convened by the Ministry of Lands and Agriculture in partnership with the Food and Agriculture Organisation of the United Nations (FAO), formed part of an ongoing process to validate and strengthen the draft strategy before its adoption. During deliberations, it was revealed that the Agriculture Financing Strategy aims to create a financing ecosystem that can unlock investment at scale, attract private capital, reduce risk and strengthen agricultural value chains.
The initiative comes as Botswana seeks to accelerate agricultural transformation, improve food security and reduce reliance on food imports. Agriculture has been identified as a key pillar of the country's economic diversification agenda, increasing the need for financing mechanisms capable of supporting growth, productivity and competitiveness. Minister of Land and Agriculture, Dr Edwin Dikoloti, highlighted the need to rethink how agricultural finance is structured, arguing that a one-size-fits-all approach has often failed to meet the diverse needs of the sector. 'Over many years, successive governments have committed substantial resources towards agricultural development through subsidies, grants, infrastructure programmes, mechanisation initiatives, livestock support schemes, drought relief programmes and numerous development interventions,” he told those attending the workshop. “Billions of pula have been invested in the sector with the sincere intention of improving productivity and strengthening food security.
Yet despite these investments, the results have often remained below expectations.' According to the minister, financing systems have been focused predominantly on supporting inputs rather than rewarding outputs highlighting that government has financed activities rather than value chains. 'We have measured expenditure rather than impact. In doing so, we have unintentionally created a system where significant resources are invested without generating the transformational outcomes that the sector requires,' he said. For his part, FAO’s Subregional Coordinator for Southern Africa, Patrice Talla noted that agriculture comprises broad range of players, each with unique financing requirements. 'The strategy recognises that agriculture is not one uniform market. “Smallholders, emerging commercial farmers, processors, exporters, cooperatives, youth-led enterprises and agri-SMEs have different financing needs, risk profiles, production cycles and market opportunities,' he said.
According to FAO officials successful agricultural financing will require moving beyond generic lending products and developing tailored financial solutions linked to specific value chains, market opportunities and cash flow realities. To address these concerns, the proposed framework promotes innovative financing instruments, blended finance models, climate financing solutions and risk-sharing mechanisms aimed at making agriculture more attractive to investors while safeguarding investments. Talla emphasised that public resources should be used strategically to stimulate, rather than replace, private sector investment. 'We must use public support more strategically to crowd in private capital, strengthen market confidence, and ensure that subsidies and guarantees are smart, targeted, time-bound, transparent and linked to measurable performance,' he said. The strategy therefore proposes a shift away from financing inputs alone towards supporting productivity, value addition and commercially sustainable agricultural enterprises.
Another key pillar of the framework is the promotion of climate-smart and technology-driven agriculture. Stakeholders noted that improving resilience to climate change will be critical to ensuring long-term agricultural growth and food security. The strategy further seeks to strengthen value chain integration by improving connections between producers, processors, distributors and markets. Policymakers believe this will create more opportunities for farmers while enhancing the sector's overall competitiveness. Further Talla stressed the importance of strong institutional arrangements, coordination between public and private sector actors, transparent monitoring systems and a pipeline of bankable projects capable of attracting investor confidence. 'This reality demands efficient implementation and disciplined delivery.
The strategy must therefore be supported by clear institutional arrangements, strong coordination between public and private actors, transparent performance monitoring, and a practical pipeline of bankable investments that can demonstrate early results and build confidence among financiers, investors, producers and development partners,' he said. The consultative workshop brought together representatives from government, financial institutions, farmers, agribusinesses and development partners.