Interview with Philippe Guichandut: Attracting more impact investment to agriculture in Africa
The online session of the Agricultural and Rural Finance training programme (FAR Africa) took place from 13 April to 15 May 2026. It brought together 140 professionals representing 118 organisations from 27 African countries. Throughout the programme, internationally recognised experts shared their knowledge and practical experience. Through the FAR Expert Insights series, ADA is making these perspectives available to the wider agricultural and rural finance community, extending the dialogue and knowledge-sharing beyond the programme itself.
About the expert
Philippe Guichandut is Secretary General of the Grameen Crédit Agricole Foundation (GCAF), where he has worked since 2010, having previously led both investment and technical assistance activities.
A longstanding advocate of inclusive finance, he contributed his expertise to the online session of the FAR Africa training programme dedicated to agricultural finance.
In this interview, he shares his perspective on the sector’s key challenges and discusses ways to strengthen its resilience and effectiveness in the face of current climate and economic pressures.
Why does agricultural finance remain a major challenge, particularly in Africa?
Agricultural finance remains significantly underfunded, even though smallholder farmers account for nearly 80% of farms worldwide. It is estimated that more than USD 400 billion is needed each year to finance agricultural development.
Several factors explain this financing gap. First, there is the issue of risk, which is being further exacerbated by climate change, as well as the perception of risk that continues to discourage investment. Costs also play an important role: financing agriculture is more expensive because rural populations are often located in remote areas with limited infrastructure. In addition, regulatory frameworks are not always conducive to agricultural lending, and there is often a lack of reliable data to accurately assess risks and financing needs. In Africa, these challenges are even more pronounced.
Who are the key actors within the agricultural finance ecosystem, and what types of services and solutions do they provide?
The agricultural finance ecosystem is made up of a wide range of complementary actors. These include microfinance institutions, which are often closest to smallholder farmers, agricultural cooperatives that pool services and resources, and commercial banks.
Alongside them are impact funds, multilateral agencies, foundations and fintech companies that are developing innovative tools to improve data collection, risk analysis and impact measurement.
Could you tell us more about blended finance? What is it exactly, and how is it used in the agricultural sector?
Blended finance is increasingly recognised as an important solution for addressing the agricultural financing gap. The principle is to combine public and private funding through mechanisms designed to reduce risk, such as guarantees, technical assistance, first-loss facilities and concessional loans.
Public and philanthropic actors are willing to absorb a greater share of the risk to reassure private investors and attract additional capital into the agricultural sector.
What role does the Grameen Crédit Agricole Foundation play in agricultural finance, and what advice would you give organisations seeking to work with impact investors?
The Grameen Crédit Agricole Foundation works primarily with two types of actors: microfinance institutions and businesses operating within agricultural value chains. Active across West and East Africa, the Foundation finances agricultural loan portfolios and supports initiatives related to agricultural insurance, which has become increasingly important in response to climate-related risks.
The Foundation also seeks to act as a catalyst for innovation by supporting the development of new financial products and services tailored to farmers’ needs.
Risk diversification is also essential, whether through diversification of crops, geographic areas or income sources. Financial institutions should also have access to agronomic expertise capable of understanding the realities and production cycles of different agricultural sectors. Finally, the ability to anticipate climate risks and implement appropriate mitigation and adaptation measures remains a key factor in building investor confidence.
What priorities or developments do you consider essential to strengthen the effectiveness and reach of agricultural finance in the coming years?
Several priorities stand out for the years ahead. These include better integration of climate considerations into risk assessment, stronger data collection and analysis capabilities, and the development of digital solutions while maintaining close relationships with producers. There is also a need to provide greater support to women agricultural entrepreneurs and to strengthen collaboration among stakeholders to avoid fragmented, silo-based approaches.