Funding gap casts shadow over EAC agricultural ambitions

The Friday discussions reviewed the newly launched EAC Regional Agri-food Sector Investment Plan (RASIP) 2026–2035, assessed agricultural budgets for the 2026/27 financial year across EAC Partner States and examined preparations for implementing the Kampala Comprehensive Africa Agriculture Development Programme (CAADP) Declaration.

"The region has moved beyond a deficit of political commitment," the EAC-CAADP Non-State Actors Group said in its budget assessment. "The constraint is readiness to implement the capacity to finance, execute, coordinate and sustain agrifood systems transformation."

Presenting findings from the latest EAC Biennial Review Report, Coordinator for Agriculture and Food Security at the EAC Secretariat, Mr David Wafula, said although the region had recorded progress under the Malabo Declaration, major gaps remain in agricultural financing, food security and intra-African agricultural trade.

He said achieving the Kampala Declaration's targets, including increasing agrifood output by 45 percent and eliminating hunger will depend on significantly expanding both public and private investment.

Mr Wafula added that implementation will require coordinated investments across multiple sectors, rather than agriculture ministries acting alone, alongside stronger institutional capacity across partner states.

He described the Regional Agri-food Sector Investment Plan as the blueprint for coordinated regional investments in sustainable production, trade, natural resource management, private sector financing, inclusion and governance over the next decade.

The webinar heard that the EAC's productive sectors' budget remains heavily dependent on external support.

For the 2026/27 financial year, the productive sectors' budget increased to $4.13 million, up from $3.44 million in the previous year.

Development partners provide $3.68 million, representing 89.17 percent of the financing, while partner states contribute $447,395, or 10.83 percent. The EAC's overall budget for FY2026/27 stands at $110.86 million.

Participants said the figures highlight the need for governments to mobilise more domestic resources to ensure long-term agricultural transformation.

Presenting the regional budget analysis, budget analysts and regional coordinator for the Eastern and Southern Africa Small Scale Farmers’ Forum (ESAFF), Mr Joe Mzinga, said measuring governments' readiness requires more than assessing how much they allocate to agriculture.

The assessment examined six indicators, including the adequacy and quality of investment, domestic financing, budget execution, accountability and alignment with national agricultural investment plans.

According to the report, Burundi is the only EAC Partner State allocating more than the CAADP benchmark of 10 percent of public expenditure to agriculture, dedicating about 13 percent of its national budget to the sector. However, analysts cautioned that higher allocations alone do not guarantee successful implementation.

Rwanda, which allocates around 4.5 percent of its national budget to agriculture, was identified as having the strongest strategic direction because of investments in irrigation, improved seed systems, livestock genetics and climate-smart agriculture.

Kenya, despite increasing its agricultural budget by 34.5 percent, allocates only 1.3 percent of its national budget to the sector, leaving what analysts described as the region's largest measurable financing gap against Kampala Declaration targets.

The report noted that South Sudan's agricultural allocation could not be independently verified because no official figure had been publicly disclosed.

Participants also pointed to mounting debt obligations, security spending and wider fiscal pressures as key constraints on agricultural investment.

According to the assessment, debt servicing in Kenya and Uganda, security spending in the Democratic Republic of Congo, conflict and oil price volatility in South Sudan, and budget rationalisation in Tanzania are limiting governments' ability to increase agricultural spending.

The report further identified excessive reliance on donor funding, competition from mandatory government expenditure and a tendency to prioritise short-term subsidy programmes over long-term investments in research, extension services and climate resilience.

EALA member Françoise Uwumukiza said parliamentarians have an important role in ensuring governments implement the Regional Agri-food Sector Investment Plan and align national agricultural investment plans with regional commitments.

Participants called for stronger oversight by governments, legislators and civil society, recommending the publication of a regional Kampala Readiness Scorecard, quarterly tracking of agricultural expenditure, protection of funding for nutrition and climate adaptation, and greater transparency in financing national agricultural investment plans.

Closing the webinar, Continental Chairperson of the CAADP Non-State Actors Group, Ms Chikondi Chabvuta, urged governments to ensure every agricultural commitment is backed by a credible financing plan.