twitter RSS Feed linkedin acp contact

IFAD invests US$9mn to help rural SMEs in developing nations

The International Fund for Agricultural Development (IFAD) has announced an investment of US$9mn into the Agri-Business Capital (ABC) Fund to help small-scale farmers and micro- small and medium size rural enterprises in developing countries create jobs and increase incomes

IFAD AF 28 AprilThe fund aism to help rural SMEs to grow their business and income. (Image source: IFAD)

The investment was made possible due to a contribution from the Swiss Agency for Development and Cooperation.

Under its private sector engagement strategy adopted in September 2019, IFAD can directly fund private sector entities and invest in funds targeting rural small and medium size enterprises (SMEs) and small-scale producers’ cooperatives.

“The private sector’s involvement in the eradication of hunger and poverty was crucial before the COVID-19 crisis. Now it has become even more important as we work to reduce some of the immediate impacts of the crisis and plan for a longer-term recovery when it is over,” said Gilbert F Houngbo, president of IFAD.

Small-scale producers and rural SMEs have always faced real difficulties in accessing the funding they need to grow their businesses. With COVID-19, their situation could become even more precarious without necessary support.

Prior to the COVID-19 crisis, the demand of US$240bn far exceeded the available supply of about US$70bn, leaving a funding gap of roughly US$170bn. About 70 per cent of the demand of approximately 270 million small producers in Latin America, sub-Saharan Africa and South and South-East Asia was unmet.

“Small-scale farmers and rural SMEs are the backbone of the economy of their countries. They have a very high potential for growth and can create jobs – especially for the youth - and drive development in their communities and countries, but they need resources to invest,” added Houngbo. 

IFAD’s investment in the ABC Fund is part of a wider plan to scale up IFAD’s engagement with the private sector and design innovative instruments to help increase investments in rural areas and help the private sector overcome the challenges of investing in small-scale agriculture, recognising that rural SMEs constitute an untapped business opportunity.

 


LATEST NEWS IN Agriculture

Norway promises top-up contribution of urgently needed climate finance

Norway promises top-up contribution of u…

On 9 November 2022, Norway, as part of a commitment to triple its support to climate adaptation by 2026, has pledged an additional US$9.5mn contribution of urgently needed climate finance...

Better Cotton signs partnership agreement with IDH and CotonChad

Better Cotton signs partnership agreemen…

Better Cotton recently signed a multi-stakeholder Letter of Intent to participate in the landscape approach, developed with local stakeholders in Chad in conjunction with IDH, intending to work towards improving...

NFU president Minette Batters appointed as ambassador of Farm Africa

NFU president Minette Batters appointed …

Farm Africa, a charity that promotes sustainable agricultural practices, strengthens markets and protects the environment in rural eastern Africa, has announced the appointment of NFU president Minette Batters as an...

AfDB grants US$63.38mn loan to implement agro-processing project in Senegal

AfDB grants US$63.38mn loan to implement…

The board of directors of the African Development Bank (AfDB) Group in Abidjan has approved a loan of US$63.38mn to Senegal to implement the Agropole-Centre agro-industrial processing zone project

Farming innovations which help conserve nature and create jobs

Farming innovations which help conserve …

On World Food Day, farmers in the UK and globally showed how innovative farming methods and techniques can improve lives, help meet global climate targets and produce food without harming...

US$20.5mn renewable energy agriculture project launched in Ethiopia

US$20.5mn renewable energy agriculture p…

On 12 October, the Distributed Renewable Energy - Agriculture Modalities (DREAM) initiative began with the launch of nine renewable energy mini-grids and irrigation systems across Ethiopia

Prev Next

OTHER RELATED ARTICLES - Agriculture

AfDB approves Nigeria’s US$650 million loan request for agriculture development

AfDB approves Nigeria’s US$650 million l…

Nigeria is set to receive a loan of US$650mn from the Africa Development Bank (AfDB) to assist small- and medium-scale enterprises in the agriculture value chain

Nigeria’s agriculture sector set to receive boost from investments

Nigeria’s agriculture sector set to rece…

Nigeria’s agriculture sector is set to benefit from government reform plans and investments that will aim to stimulate growth within the production chain and create millions of jobs

Ambassador of Belarus met chairman of the Board of ECARD

Ambassador of Belarus met chairman of th…

Ambassador extraordinary and plenipotentiary of the Republic of Belarus to the Arab Republic of Egypt Sergei Terentiev held a comprehensive meeting with the chairman of the Board of the Egyptian...

FAO to train 500,000 African farmers to manage Fall Armyworm

FAO to train 500,000 African farmers to …

The UN Food and Agriculture Organisation (FAO) has announced to start a campaign to train more than 500,000 farmers to manage Fall Armyworm through farmer field schools in Sub-Saharan Africa

India’s Tata group plans to grow tea in Ethiopia

India’s Tata group plans to grow tea in …

India's Tata group plans to grow tea in Ethiopia and is working towards setting  up an automobile assembly plant in Mozambique as it seeks to expand business interests in Africa

Ghana Cocoa Board secures US$1.3bn syndicated loan

Ghana Cocoa Board secures US$1.3bn syndi…

The Ghana Cocoa Board (COCOBOD) has concluded a US$1.3bn syndicated loan agreement at a signing ceremony in Paris

About 40mn smart farming devices to be used by 2025

About 40mn smart farming devices to be u…

As innovative technologies paved the way for smart farming’s emergence in the internet of things (IoT) landscape, LPWAN supplies a range of features in terms of energy consumption and long-range...

Norway supports locally-produced school meals in Malawi

Norway supports locally-produced school …

The United Nations World Food Programme (WFP) has received a contribution of US$1.5mn from the government of Norway to support the provision of locally-produced school meals for 50,000 primary school...

Zimbabwe's smallholder irrigation receives international funding

Zimbabwe's smallholder irrigation receiv…

Zimbabwe's smallholder irrigation sector has received a US$25.5mn grant from the International Fund for Agricultural Development (IFAD)

New app to help Kenyan farmers with climate-smart seeds

New app to help Kenyan farmers with clim…

A new mobile phone app in Kenya could help farmers by providing information on seeds best suited to the changing climate and growing conditions

AfDB president Adesina wins 2017 World Food Prize

AfDB president Adesina wins 2017 World F…

Dr Akinwumi Ayodeji Adesina, President of the African Development Bank Group, has been awarded the World Food Prize 2017 for his pioneering role in empowering African agriculture and making it...

African leaders to increase agriculture investment

African leaders to increase agriculture …

African leaders reaffirmed their commitment to transforming the continent’s agricultural sector at the 2014 Grow Africa Investment Forum which took place in Abuja, Nigeria from 6-8 May

Prev Next