The African Rural and Agricultural Credit Association (AFRACA), in partnership with NIRSAL Plc and other stakeholders, has commenced a week-long masterclass in Lagos aimed at strengthening the capacity of financial-sector professionals to finance climate-resilient agriculture and apply artificial intelligence to agricultural lending.

The programme, which commenced on Wednesday, August 19, 2026, brought together participants from Nigeria, Uganda, Ghana, Tanzania, the Democratic Republic of Congo, Kenya and other African countries.

Representatives of four central banks are taking part in the training alongside professionals drawn from commercial banks, insurance companies, development finance institutions and microfinance banks.

The masterclass centres on inclusive finance for climate resilience as well as the use of artificial intelligence in financial services and agricultural finance.

Speaking at the opening of the programme, AFRACA Secretary-General, Ngo Bakang Anny Caroll, said the training was timely because climate change continues to disrupt agricultural production and place increasing pressure on food systems across Africa.

She stressed the important role of financial institutions as providers and allocators of capital, noting that improved access to financing would support Africa in strengthening food production and enhancing its competitiveness globally.

Representing NIRSAL, Executive Director, Operations, Ewaen Imohe, delivered a welcome address on behalf of the Managing Director and Chief Executive Officer, Sa’ad Hamidu.

Hamidu pointed to inadequate understanding and management of agricultural risks as a key obstacle restricting the flow of finance into agriculture across the continent.

“At NIRSAL, we have always maintained that agriculture, especially in sub-Saharan Africa, is not underfinanced because opportunities do not exist, but because the risks have not been sufficiently understood, measured, appropriately priced, and managed,” he said.

According to him, NIRSAL has established financing systems and risk-sharing frameworks designed to make agricultural lending more appealing to financial institutions while encouraging increased participation from the private sector.

Hamidu disclosed that NIRSAL approved Credit Risk Guarantees for loans exceeding N100 billion in 2025, adding that the figure had already been surpassed in 2026.

The guaranteed financing is supporting farmers, processors, aggregators, exporters and other businesses operating across agricultural value chains.

He further disclosed that non-interest financial institutions accounted for more than 50 per cent of the loans guaranteed by NIRSAL during the first half of 2026. He described the development as evidence that suitable risk-sharing mechanisms can draw capital from different sources into agriculture.

Participants are also being introduced to tools for evaluating climate risks, designing adaptation and mitigation projects, structuring green investments and accessing specialised climate-finance facilities.

Dr Chris Myungu of the Alliance of Bioversity International and CIAT under CGIAR introduced participants to the Africa Adaptation Atlas and CGIAR climate-rationale outputs. These resources can assist financial institutions in incorporating climate data into the assessment of agricultural investments.

Artificial intelligence is another major component of the programme, with discussions examining how the technology can strengthen risk assessment, transaction analysis and financial decision-making in agricultural lending.

Hamidu encouraged participants to concentrate on practical applications of AI that can enable financial institutions to gain a better understanding of agricultural risks and make more informed lending decisions.

He also pointed to the potential of combining AI with climate finance, blended finance, grants and other funding mechanisms to increase the resources available to Africa’s agricultural sector.

The training also reflects the expanding partnership between AFRACA and NIRSAL, bringing together AFRACA’s continental knowledge-sharing network and NIRSAL’s experience in agricultural risk-sharing and value-chain financing.

The organisers said the masterclass is expected to help financial institutions strengthen agricultural risk management, broaden access to finance and support the development of more climate-resilient agribusinesses across Africa.

Source: msme Africa online