Absa Group is looking to scale up its agricultural financing strategy beyond South Africa, as part of efforts to drive economic transformation and food security across the continent.
Group CEO Kenny Fihla said the bank has built strong expertise in agricultural lending, noting that it currently accounts for about 40 percent of total bank financing to the sector in South Africa.
Speaking on Point of View with Bernard Avle, he acknowledged that this success has not yet been fully replicated across Absa’s operations in other African markets.
“I don’t think we have fully leveraged that expertise across the rest of our footprint,” he admitted, adding that the bank is now working to better integrate its agricultural financing model across countries.
Mr Fihla described agriculture as a commercially viable sector when approached with the right strategies, stressing that targeted investments in high-potential areas can deliver sustainable returns despite inherent risks.
He said expanding support for agriculture could significantly improve productivity, strengthen food systems, and support industrial growth through agro-processing.
Beyond agriculture, the Absa CEO highlighted the scale of Africa’s broader financing needs, particularly in infrastructure and industrialisation, which he estimated would require trillions of dollars.
However, he expressed confidence that the continent has sufficient internal capital to meet these demands if financial systems are structured effectively.
He emphasised the role of banks as key intermediaries in linking investors to viable projects, working with governments to develop bankable opportunities, and mobilising domestic deposits to finance growth.
According to him, unlocking Africa’s development potential will depend on better coordination between financial institutions, policymakers, and private investors to channel capital into productive sectors.
