AFRACA and NIRSAL Launch Masterclass in Lagos to Drive AI and Climate-Resilient Agricultural Finance in Africa

 

Lagos, Nigeria -  The African Rural and Agricultural Credit Association (AFRACA), in partnership with NIRSAL Plc, has inaugurated a major capacity-building masterclass in Lagos, uniting financial sector professionals across Africa to tackle the future of agricultural finance through climate resilience and artificial intelligence (AI).

The week-long programme gathers delegates from Uganda, Ghana, Tanzania, the Democratic Republic of Congo, Kenya, and Nigeria. Representation includes four African central banks, alongside commercial banks, insurance firms, development finance institutions, and microfinance banks.

Quick Facts: AFRACA-NIRSAL Masterclass

• Host Location: Lagos, Nigeria
• Key Themes: Inclusive Finance for Climate Resilience; Artificial Intelligence for Financial and Agricultural Finance
• Participating Nations: Uganda, Ghana, Tanzania, DRC, Kenya, Nigeria, and others
• Key Stakeholders: AFRACA, NIRSAL Plc, Alliance of Bioversity International & CIAT (CGIAR)
• NIRSAL 2026 Impact: Non-interest financial institutions accounted for over 50% of NIRSAL's guaranteed loans in H1 2026.

Addressing the Risk Gap in African Agriculture

AFRACA Secretary-General Ms. Ngo Bakang Anny Caroll

Opening the event, AFRACA Secretary-General Ms. Ngo Bakang Anny Caroll highlighted the significance of returning the capacity-development initiative to Nigeria for the first time since 2017. She emphasised that amid global climate change and stressed food systems, African financial institutions bear a critical responsibility as capital allocators to sustainably feed the continent and enhance its global competitiveness.

Representing NIRSAL Plc’s Managing Director/CEO, Mr. Sa'ad Hamidu, Executive Director of Operations Mr. Ewaen Imohe delivered a keynote address framing the core challenge of agricultural finance in Africa: the nexus between knowledge, risk, and institutional lending appetite.

"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," Mr. Hamidu stated.

To counter this, NIRSAL has co-developed systems and financing frameworks designed to structure agricultural value chains, mitigate risks, and build lender confidence. The results are evident in recent milestones. In 2025, NIRSAL approved Credit Risk Guarantees exceeding N100 billion—a figure already surpassed in 2026 year-to-date.

Notably, non-interest financial institutions accounted for well over 50 percent of the loans guaranteed by NIRSAL in the first half of 2026. Mr. Hamidu cited this trend as proof that appropriate risk-sharing frameworks can successfully unlock diverse capital pools for agricultural development.

Climate Resilience and the AI Transition

The masterclass focuses on two pivotal themes. The first, Inclusive Finance for Climate Resilience, aims to transition climate finance from an abstract concept into actionable banking knowledge. Sessions cover climate-risk assessment, adaptation, mitigation, and green-project structuring.

Dr. Chris Myungu from the Alliance of Bioversity International & CIAT (CGIAR) introduced participants to the Africa Adaptation Atlas, demonstrating how data-driven climate research can identify and support bankable, climate-resilient agricultural investments.

The second theme, Artificial Intelligence for Financial Services and Agricultural Finance, shifts focus to technological integration. Mr. Hamidu urged participants to look beyond the novelty of AI, advocating for its practical application in improving risk assessment, transaction evaluation, and financial decision-making. He noted that AI could complement blended finance and grants to expand technical resources available to the sector.

A Strategic Continental Partnership

The masterclass underscores the strategic synergy between AFRACA and NIRSAL. Mr. Hamidu described AFRACA as a vital platform for continental knowledge exchange, whilst positioning NIRSAL as a results-driven partner offering practical experience in agricultural risk-sharing and value-chain development.

The programme will continue in Lagos with further technical sessions, followed by practical, hands-on engagements focusing on AI applications in financial services.

Frequently Asked Questions (FAQs)

1. What is the AFRACA-NIRSAL Masterclass?

The AFRACA-NIRSAL Masterclass is a capacity-building programme for African financial professionals, focused on leveraging climate resilience frameworks and artificial intelligence to improve agricultural finance.

2. Why is agricultural finance lagging in sub-Saharan Africa?

According to NIRSAL's Managing Director, Mr. Sa'ad Hamidu, African agriculture is not underfinanced due to a lack of opportunities, but because industry risks have not been properly understood, measured, priced, or managed by financial institutions.

3. How much agricultural credit did NIRSAL guarantee recently?

NIRSAL approved Credit Risk Guarantees for loans exceeding N100 billion in 2025 and has already surpassed that total in 2026 year-to-date, with non-interest financial institutions contributing to over 50% of the guarantees in the first half of 2026.

4. What are the core topics covered in the masterclass?

The programme covers two main themes: Inclusive Finance for Climate Resilience (including climate-risk assessment and green project structuring) and Artificial Intelligence for Financial Services and Agricultural Finance (focusing on AI for risk assessment and decision-making).