International Finance Corporation (IFC) plans to invest at least two billion U.S. dollars annually in Africa's agribusiness sector by 2018, the firm said on Thursday.
IFC Head of Manufacturing for Sub Saharan Africa German Vegarra told a media briefing in Nairobi that in the last financial year, its total investments in the region reached one billion dollars.
"Agribusiness is strategic for IFC, given the growing challenges of food security in the continent," he said. In 2013, total global IFC investments hit 25 billion dollars.
The financial institution is currently expanding support to Africa's agricultural sector through its advisory services. The investments will be injected into firms that have positive impact in the continent.
"In Africa, agribusiness has the most potential to reduce poverty," he said. Agriculture contributes to about half of Africa's GDP and employs 60 percent of the labor force.
"We estimate that by 2030, the agribusiness could become a one trillion dollar industry in sub Saharan Africa," he said.