China has become a major lender to African agriculture, but its money is overwhelmingly directed at boosting production rather than building the processing and storage systems needed to turn farms into industries. A new analysis of Chinese agricultural lending across the continent finds that while irrigation, mechanisation, and farm schemes get the lion's share, investment in cold chains and food processing remains marginal.
The study, which tracked loans from Chinese institutions between 2000 and 2024, identified 41 agricultural loans totalling roughly US$2.26 billion. Southern African countries—Angola, Zambia, Zimbabwe, and Mozambique—received the largest share, followed by East African nations such as Ethiopia, Kenya, and Tanzania, and then West Africa's Nigeria and Ghana. Chinese institutions have also funded agricultural projects in Egypt.
Farm schemes accounted for nearly 36% of all agricultural lending, while fisheries received 29%. Irrigation and mechanisation also featured prominently. By contrast, storage and cold-chain infrastructure made up just 3% of the loans, and agro-processing facilities less than 2%.
Production without transformation
The pattern reflects a broader tendency among Chinese lenders to back projects that are practical and deliverable, rather than those that fit a strategic vision for transforming a country's agricultural sector. Decisions were driven by project feasibility and the capacity of the borrowing institution, not by a coordinated plan to build integrated value chains.
This matters because many African governments lack the domestic resources to modernise agriculture on their own. They need external finance for irrigation, machinery, storage, transport, and processing plants. But whether such loans lead to lasting development depends on the types of projects funded, not just the volume of money.
For agriculture to drive economic growth and improve food security, the sector must move beyond simply producing more crops. It requires investment in markets, research, extension services, and institutions that connect smallholder farmers to local and international buyers. China's current lending, the study argues, falls short in these areas.
“China's funding strengthened agricultural production, but provided comparatively little support for storage, processing, and market systems,” the researcher noted. These are widely recognised as essential for agricultural transformation.
What African governments can do
The long-term contribution of Chinese finance will depend on two factors: the amount of investment and whether future lending supports the wider systems that link production, processing, and markets. Investing only in farming infrastructure is unlikely to produce the structural changes needed for a more competitive agricultural sector.
African governments have an opportunity to negotiate financing that goes beyond individual projects. Greater investment in storage facilities, agro-processing, cold-chain systems, transport networks, research, extension services, and market development would strengthen agricultural value chains and increase the long-term benefits of external finance.
Governments also need to ensure that their agriculture, finance, and planning departments work together. This would help align international loans with each country's long-term agricultural plans, rather than funding disconnected projects. Transparency about borrowing and project implementation would also improve accountability and help ensure that money leads to lasting improvements.
Development partners, for their part, can choose to support financing models that connect production with processing, post-harvest infrastructure, and market access. In this way, their investment can generate wider economic benefits.
Climate change, population growth, and food insecurity are placing increasing pressure on African food systems. The question is whether development finance is structured to create value long after individual projects have been completed. That will require building productive, competitive, and resilient agricultural systems—something China's current lending pattern does not yet fully support.
As China deepens its engagement across the Global South, including through initiatives like its expanding influence in developing economies, the nature of its agricultural finance will be closely watched. For now, the evidence suggests that while China helps African farmers grow more, it is doing far less to help them process, store, and sell what they harvest.
