Addis Ababa, October 24, 2025(ABN)
World Bank study highlights both the immense potential and persistent challenges facing smallholder farmers across Africa, Asia, and Latin America. While millions of farmers in developing regions are ready to boost production and drive rural transformation, the report underscores that success depends on improving access to modern tools, financial services, and reliable markets.
According to the World Bank’s 2025 findings, smallholder and family farmers produce nearly one-third of the world’s food, yet many continue to struggle with outdated farming methods, limited access to credit, and weak connections to profitable markets. Despite these challenges, experts agree that empowering these farmers could unlock a new wave of inclusive growth and food security across the Global South.
Unlocking Productivity through Innovation
The report notes that productivity in developing regions remains far below potential due to limited access to agricultural technology and mechanization. For instance, farmers often rely on manual labor and traditional tools, resulting in low yields. The World Bank emphasizes that access to modern irrigation systems, improved seed varieties, and digital farming solutions could dramatically increase output while promoting climate resilience.
In Ethiopia, for example, more than 1.2 million farmers have benefited from World Bank supported food-systems resilience programs that provide training in composting, soil fertility, and pest management. Such initiatives are proving that innovation at the grassroots level can significantly enhance both productivity and sustainability.
Financing the Future of Farming
The report highlights financing gaps as one of the most significant barriers to agricultural growth. Fewer than 1 in 10 smallholder farmers worldwide have access to commercial credit or insurance. Without affordable financing, farmers cannot purchase inputs, invest in machinery, or expand their operations.
In response, the World Bank and its partners are promoting agricultural finance models, including mobile banking, digital credit scoring, and micro-insurance schemes. These tools are helping bridge the gap for farmers who have historically been excluded from formal financial systems. Programs like the Productive Alliances initiative in Latin America and Africa have helped participating farmers increase sales by up to 50% and incomes by over 20%, proving that access to finance directly impacts livelihoods.
Strengthening Market Access and Value Chains
Access to stable and profitable markets remains another challenge. Many smallholders sell their produce locally at fluctuating prices, limiting income stability. The World Bank report stresses that improving rural infrastructure such as roads, storage facilities, and logistics can reduce post-harvest losses and link farmers to regional and international buyers.
In Mali, for instance, a World Bank–supported project increased mango exports by 30% after improving transportation and processing facilities. Similarly, the expansion of trade under frameworks like the African Continental Free Trade Area (AfCFTA) is expected to further enhance market opportunities for African farmers.
Climate Resilience and Sustainability
Climate change remains a growing concern for farmers across the developing world. Rising temperatures, erratic rainfall, and soil degradation threaten agricultural productivity. The World Bank emphasizes the importance of climate-smart agriculture, including drought-tolerant crops, renewable energy irrigation systems, and environmentally sustainable farming methods to safeguard the future of global food systems.
A Global Call to Action
The World Bank’s message is clear: Farmers in Africa, Asia, and Latin America are ready to grow. But achieving their potential requires a coordinated effort among governments, development institutions, and the private sector to:
- Provide affordable finance and risk protection.
- Invest in infrastructure and technology.
- Build efficient market linkages.
- Support research, training, and digital transformation in agriculture.
Agriculture remains one of the most powerful tools for reducing poverty, creating jobs, and ensuring food security. As the world faces population growth and climate uncertainty, the future of farming in the developing world holds the key to a more resilient and prosperous planet.
