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Structuralising capital for rural lending is the need of the hour.

Kenya's smallholder agriculture industry will be supported with private-sector local currency securitisation led by anchor investor, IDH Farmfit Fund, with the transaction structured by Kaleidofin in partnership with agri-finance company Apollo Agriculture

Structuralising capital for rural lending is the need of the hour, and the currecy securitisation move will generate smallholder finance with the development of institutional credit markets. Approximately US$2.1mn has been mobilised through Apollo Agriculture to secure smallholder farmer credit in Kenya for agricultural inputs. About 51% of the 23,839 smallholder farmers covered by the portfolio are women, while 22% are first-time borrowers. 

“This transaction demonstrates how innovative financial structures can unlock capital for smallholder farmers at scale,” said Roel Messie, CEO of IDH Investment Management, which manages the IDH Farmfit Fund. “Building investable opportunities in agriculture requires both capital and enabling infrastructure, and this partnership brings those elements together.” 

Kaleidofin’s ki platform that caters to underserved segments by converting granular agricultural loans into investable securities in local currency, materialised the securitisation.

Apollo Agriculture leverages ki's AI-driven risk intelligence system in assessing creditworthiness. Apollo focuses on supporting farmers who does not have a background in credit.

“This is a meaningful step in building efficient, scalable funding for smallholder agriculture and validates our tech-enabled business model,” said Eli Pollak, CEO of Apollo Agriculture. “By converting receivables into working capital, we are able to lower our cost of funds and expand access to affordable, local currency financing for farmers.”

Women, youth and farmers will be espcially supported by the project.

Gode in Somali region has been selected by the United Nations World Food Programme (WFP) for a solar-powered irrigation scheme to sustain year-round food production and empower drought-prone communities to weather climate shocks

Defined as 'Climate proofing food security in Ethiopia’s drought prone lowland areas' or IFTIIN, the project is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) through KfW Development Bank. 

IFTIIN, which signifies 'light' or 'hope' in the Somali language, has been designed to support 17,000 pastoral and agro-pastoral families spanning several woredas in the Somali region. Women, youth and farmers will be espcially supported by the project in line with national priorities. Beneficiaries will get increased water access and support for crop and livestock production. Multiple income streams will open up for families and local institutions will be empowered to support communities in managing climate shocks.

“WFP’s vision in Ethiopia is to support the Government’s shift toward resilient, self-reliant food systems,” said Zlatan Milisic, WFP representative and country director in Ethiopia. “By working closely with government institutions, we are strengthening national systems and embedding resilience approaches that are community-led and locally owned. Through IFTIIN, we are investing in irrigation, markets and livelihoods so communities can absorb climate shocks and reduce long-term reliance on humanitarian assistance. Today’s inauguration is that strategic vision in action.”

Ecovado's plant will be driven by the Alfa Laval processing line.

A South Africa-based agroprocessing company called Ecovado has launched an avocado oil processing plant in Vhembe, Limpopo, in collaboration with global heat exchanger manufacturer, Alfa Laval Middle East, South and East Africa (MESEA)

This move follows Ecovado identifying Vhembe's largely unexplored market potential in avocados, which the region is naturally blessed with -- enough to sustain its wider economic progress. Boosting local avocado production will secure long-term supply and open up income opportunities for households. The success of this project will fulfil Ecovado's fruitforcash vision as part of its local development cause for employment generation and agricultural sustainability. 

Ecovado's plant will be driven by the Alfa Laval processing line, giving the South African company an instant edge in the export markets with its quality products matching global standards. The project is being funded by Alfa Laval through Swedish export credit agency, EKN. Alfa Laval has also extended its funds beyond Vhembe to cover the costs of avocado seedlings for small scale farmers from the adjacent regions.

Local residents are running the day-to-day operations at the Ecovado plant, with fruits sourced directly from small scale growers. The company is now focusing to scale up production before it can grow its network of community suppliers, and in turn, expand export reach.

“This project represents exactly what sustainable industrial development should look like: world class technology enabling local entrepreneurship, job creation and long-term community development,” said Alfa Laval South and East Africa general manager, Bongani Twala.

Proparco announces partnerships to advance trade finance for agricultural value chains across Africa. (Image source: Proparco)

With an aim to fill a multi-billion dollars financing gap in agricultural trade, Proparco has launched the Africa AgriTrade Coalition during the Africa Forward Summit 

The financial provider has united 16 influential institutions to advance trade finance for agricultural value chains across Africa. The combined balance sheet currently stands at US$430bn, with signatories including AFG Holding, Banque El Amana, Banque Mauritanienne de l'Investissement, Banque pour le Commerce et l'Industrie, BPER Banca, Co-operative Bank of Kenya, Coris Holding, CRDB Bank, Ecobank Transnational Incorporated, Equity Group Holdings, KCB Bank, The Mauritius Commercial Bank Ltd, NSIA Holding Financière, Qatar National Bank, UBCI, and Union de Banques Arabes et Françaises.

A marked financing gap in Africa's agricultural trade is affecting multiple sectors from cocoa and cashew in West Africa to cereals and fertilisers in East Africa and in Central Africa, and maize, soy and sugar in Southern Africa. If narrowed even by a small part, it can result to freeing hundreds of millions of dollars in additional financing. This will reflect significantly on market access, employment, supply chain resilience and the security of food supply chains.

With current geopolitical tensions disrupting supply chains globally, the move comes at an apt time to support the financing of agricultural markets. The coalition can significantly strengthen cooperation between partner banks to diversify risk sharing across key agricultural corridors. Proparco will be leveraging its extensive experience in trade finance and guarantee mechanisms, aiding partner institutions in cofinancing, advancing risk-sharing tools, and by connecting banks to help generate more transactions.

The development aligns with the strategies of African Continental Free Trade Area (AfCFTA) for regional integration and the advancement of intra-African agricultural trade.

Following the signature of the declaration of intent, Proparco and its partners will move into an implementation phase starting in June, focused on identifying and structuring initial transactions, strengthening interbank collaboration and building a pipeline of operations.

The first transactions will see initiation as soon as in coming months, enabling solid financing flows across selected value chains, before the platform sees expansion over time as more institutions participate and collaboration deepens.

Kenya Sets Course for Smarter Farming with New Agriculture Council (Image credit: The Online Kenya)

Kenya is moving with clear intent to reshape its agricultural future through the launch of the World Agriculture Forum country council

The initiative reflects a growing commitment to modernise farming by bringing together innovation, investment and collaboration across the entire agricultural value chain.

At its core, the council is focused on improving productivity while helping farmers adapt to a changing climate. With rising pressure from unpredictable weather, population growth and strained supply systems, the country is looking for practical ways to increase both the quality and volume of food production. The aim is not only to grow more, but to do so in a way that is sustainable and resilient.

A strong emphasis has been placed on the use of advanced technologies. Tools such as artificial intelligence and bioengineering are expected to support farmers in making informed decisions and improving overall farm performance. Better seeds, smarter planning and efficient resource use are all part of this shift towards more intelligent farming systems that balance productivity with environmental care.

The council is also designed to close the gap between policy and real farm practices. By encouraging closer cooperation between government bodies, researchers and agribusiness leaders, it seeks to turn ideas into measurable results. This includes boosting yields, raising farmer incomes and strengthening rural communities over time.

Equally important is the focus on partnerships and local innovation. By connecting scientists, investors and policymakers, the platform creates space for knowledge sharing and tailored solutions that reflect Kenya’s unique agricultural landscape. It also opens doors for farmers to access global expertise and new markets.

Support for farmers remains a key priority. The initiative promotes access to finance, training and modern tools, ensuring that innovation is not out of reach for those working on the ground. Collaboration between public and private sectors, along with strong local engagement, will be vital to making these efforts successful.

Looking ahead, Kenya plans to build a scalable model for agricultural growth by 2028, signalling a shift from planning to real action in the sector.

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