Absa Group says it continues to play a leading role in agricultural financing across Africa, describing the sector as central to the continent’s long-term economic transformation agenda.
Group Chief Executive Officer Kenny Fihla said agriculture remains a key lending priority for the bank and a critical driver of productivity, food security, and industrial development if effectively scaled across its markets.
Speaking on Point of View with Bernard Avle, Mr Fihla pointed to Absa’s strong position in South Africa as a benchmark that could be replicated across the rest of its African operations.
He noted that in South Africa, Absa accounts for a significant share of agricultural lending, demonstrating its depth of experience in the sector.
“Absa is the biggest commercial bank that supports the agricultural sector. In South Africa, 40 percent of bank lending to the agricultural sector is done by Absa,” he said.
However, he acknowledged that the group has not fully leveraged this expertise across its wider African footprint.
“I don’t think we have accelerated the leveraging of that know-how, of that expertise to the benefit of the rest of our footprint,” he admitted.
Mr Fihla maintained that agriculture can remain a profitable and sustainable banking segment when properly structured and targeted, despite its inherent risks.
“If you choose the right lines and you focus on the right opportunities, you can have a sustainable business over a long period of time,” he said.
He added that Absa is working to better integrate its operations across countries in order to scale successful agricultural financing models.
Beyond agriculture, he highlighted Africa’s broader financing needs, estimating that the continent will require trillions of dollars to support infrastructure development, energy transition, and industrial expansion.
He stressed, however, that sufficient capital already exists within Africa to drive this growth, if properly mobilised.
According to him, banks must play a stronger intermediary role by connecting investors to viable projects, partnering governments to structure bankable initiatives, and leveraging domestic deposits to support liquidity and growth.
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