In Africa, where smallholder farmers produce up to 70% of the food we consume, managing agricultural risks is not optional; it is essential for ensuring sustainable agri-food systems and boosting investment in the agricultural sector. This was the pivotal message conveyed by PARM during the Africa Food Systems Forum, held from 31 August to 4 September 2025 in Dakar, Senegal. Bringing together approximately 6,000 participants, including farmers, policymakers, researchers, students, development partners, and private sector actors, the Forum provided a unique opportunity to highlight the critical role of Agricultural Risk Management (ARM) in building resilient, sustainable, and inclusive agri-food systems across Africa.
De-risking agriculture to unlock investment
In the face of climate shocks, market volatility, financial exclusion, and food insecurity, PARM is working to unlock the full potential of African agri-food systems by holistically addressing one of the most persistent barriers to investment: risk. Through its activities in Burkina Faso, Burundi, Ethiopia, Ghana, Madagascar, Niger, Senegal, and Tunisia, PARM provides integrated solutions to institutions, investors, and smallholder farmers, combining resilient agricultural practices, financial and digital tools, capacity building, and climate and agricultural insurance. These approaches help de-risk agriculture, improve access to finance for youth and rural SMEs, and make the sector more attractive to investors, ultimately contributing to the resilience of food systems.
For example, in Ghana, PARM has supported the development of an innovative financial mechanism that brings together banks, insurance providers, and a guarantee fund (GIRSAL), enabling young people to more easily access credit and insurance in the soybean, tomato, and poultry value chains. This model, presented by PARM’s Technical Expert, Dr. Jean-Claude Bidogeza, during the private sector roundtable, reduces the perceived risk for banks and attracts more private capital. In parallel, the Ghana Agricultural Risk Management project (GhARM) envisions the creation of poultry demonstration centers that will train over 5,000 people annually (30% youth and 50% women) by combining public research and private investment.
Moreover, the results from the first phase of PARM’s Insurance for Rural Resilience and Economic Development (INSURED) programme, supported by the Swedish International Development Cooperation Agency (Sida), further confirm the importance of combining agricultural insurance, a key ARM tool, with other strategic measures such as financial education and access to financial services. Over 23,000 people in rural areas have been trained in financial literacy and the use of insurance products and services. Additionally, approximately 630,000 people have been protected from climate-related risks, with more than 50% of them being women covered by the pilot projects. “When combined with financing and training, agricultural insurance transforms risk management into a true pathway for growth. It shifts agriculture from being seen as a risky gamble to a viable business opportunity for young farmers and entrepreneurs,” said Tara James, Agricultural and Climate Insurance Specialist with the PARM-INSURED programme.
Youth driving transformation
Under the theme “African Youth: Driving Collaboration, Innovation, and Transformation of Agri-Food Systems,” the AFS Forum spotlighted the need to place young people at the forefront as builders of resilient food systems in Africa. Without access to finance, markets, or training, their potential remains untapped. De-risking is therefore a powerful lever to change this reality.
This was illustrated by PARM during the masterclass “Unlocking Technical Assistance in Africa for SMEs”, co-organized with the International Fund for Agricultural Development (IFAD), SNV Netherlands Development Organization, Climate Policy Initiative, and Mercy Corps at the Forum.
According to Sara Mbago-Bhunu, IFAD’s Regional Director for East and Southern Africa, technical assistance helps build investor confidence in youth- and women-led businesses and facilitates scaling. “Technical assistance is only truly effective when it is embedded in trusted partnerships that can turn recommendations into concrete action on the ground,” said Dorcas Mayala Ntumba, PARM’s Knowledge Management, Communication, and Partnerships Specialist.
Investing in agri-risk management today to secure Africa’s food systems tomorrow
Through its active participation in the AFS Forum 2025, PARM issued a call to global leaders to increase investments in smart agricultural risk management through concrete actions: (i) Increase funding for risk-informed policies and tools; (ii) Integrate Agricultural Risk Management (ARM) into national investment strategies and educational systems; and (iii) Support youth-led enterprises to innovate and thrive in risk-resilient environments.
By establishing bold, inclusive, and scalable partnerships with governments, development partners, universities, civil society, and the private sector, we can jointly develop solutions that mitigate investment risks and accelerate the shift toward a future where agriculture becomes a viable, resilient, appealing, and sustainable career path for youth, and a cornerstone of thriving farming systems across Africa.
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