China has committed more than $2.26 billion in agricultural loans across Africa since 2000, but new research suggests its investments focus heavily on boosting farm production while neglecting the processing and storage infrastructure needed for lasting agricultural transformation. Most Chinese financing has supported irrigation, mechanization, fisheries, and farming projects, while less than 3% has gone toward storage and cold-chain facilities and under 2% toward agro-processing. Researchers argue that without stronger investment in value chains, transport, markets, and food processing, African countries will struggle to improve food security and create competitive agricultural industries. The study also found that lending decisions are driven more by project feasibility than long-term sector development strategies. It recommends African governments negotiate financing that supports the entire agricultural ecosystem while improving transparency and coordination to maximize the long-term benefits of foreign investment.
The Conversation