Research on World Agricultural Economy

The Effects of COVID‑19 on Agricultural Financing in Sub‑Saharan Africa: A Cross‑Country Analysis

Abdulazeez Y.H Saif-Alyousfi

Financial Management Program, Department of Business Administration, College of Business Administration, University of Hafr Al‑Batin, Hafr Al‑Batin 39524, Saudi Arabia

Turki Rashed Alshammari

Financial Management Program, Department of Business Administration, College of Business Administration, University of Hafr Al‑Batin, Hafr Al‑Batin 39524, Saudi Arabia

DOI: https://doi.org/10.36956/rwae.v6i2.1812

Received: 6 March 2025; Published: 11 April 2025

Abstract

This study examines the impact of the COVID-19 pandemic on agricultural financing in Sub-Saharan Africa between 2019 and 2023, focusing on the long-term implications for the sector’s resilience and recovery. Using pooled ordinary least squares (OLS), two-stage least squares (2SLS) and generalized method of moments (GMM), the analysis reveals that the pandemic significantly disrupted agricultural financing, with smallholder farmers and women farmers facing the greatest challenges in accessing financial resources. The study emphasizes the pivotal role of digital financial services, such as mobile money platforms, in mitigating these effects, particularly in regions with underdeveloped traditional financial systems. Furthermore, the research highlights the importance of government policy responses, economic diversification, and sustainable financing models in fostering recovery. Regions with stronger financial infrastructures and diversified economies demonstrated greater resilience, while less diversified areas struggled to maintain agricultural financing. The study advocates for targeted policy interventions to improve financial inclusion and support the agricultural sector’s recovery. It also calls for the expansion of digital financial ecosystems, the development of inclusive financial products, and the integration of sustainable financing models to enhance the sector’s long-term resilience. These findings provide critical insights for policymakers, financial institutions, and development organizations seeking to strengthen agricultural financing and ensure a more sustainable future for the sector in Sub-Saharan Africa.

Keywords: COVID‑19; Agricultural Financing; Sub‑Saharan Africa; Digital Financial Services; Smallholder and Women Farmers; Economic Diversification; Sustainable Financing; Policy Intervention

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