Agriculture

The agreement supports streamlined approach on deal sourcing and investment, risk sharing, and technical assistance, aimed at raising farmers' incomes. (Image source: Adobe Stock)

A new partnership was recently announced between the IDH Farmfit Fund and social impact investor Oikocredit, aimed at reducing the financing gap for smallholder farmers

The two organisations have signed a collaborative agreement, committing to creating synergies in their sourcing and investment transactions. By aligning their approach and intensifying their collaboration, the Farmfit Fund and Oikocredit will create efficiencies that accelerate impact for smallholder farmers. 

While developing economies have a total available amount of US$9bn, the actual financial need of smallholder farmers is US$450bn. In order to bridge this financial gap, Farmfit Fund and Oikocredit are providing loans to cooperatives and other small and medium enterprises (SMEs) in the smallholder farming sector, thereby enabling cooperatives to export directly and sell their products at improved conditions, while also investing in climate smart agriculture practices. 

Through their collaboration, the two organisations will streamline their interventions, allowing both to accelerate impact. Aligning investment processes and criteria, and utilising each other's unique and extensive network and knowledge in producing countries, will enable the two organisations to source, structure and monitor deals. Additionally, the partnership will also share risks and provide technical assistance where necessary, thereby ensuring the success and sustainability of their interventions. 

“Smallholder agriculture is the backbone of many emerging economies. The collaboration with IDH enables Oikocredit to invest more in smallholder farmers who are important in providing safe and affordable food for local communities and play a crucial role in the fight against climate change,” said director of Specialised Finance and Community Building at Oikocredit, Hans Perk. 

Roel Messie CEO of IDH Investment Management and IDH Farmfit Fund also highlighted the previous partnership between the two organisations to provide loans to smallholder-focused Agri SMEs in Guatemala and Nicaragua. "This experience has revealed how aligned our strategies are and how much we can achieve if we bundle our knowledge and networks. By formalising our collaboration in this broader framework, we can build on our complementarity to further improve the livelihoods of smallholders.”

Vertical farming offers a sustainable alternative that allows farmland to recover while enhancing urban living. (Image source: Go Vilnius)

With agriculture being a major driver of climate change, the European Union (EU) is promoting a green transition through continent-wide initiatives including the adoption of sustainable technology in agriculture

Through continent-wide initiatives, Vilnius, the capital of Lithuania is striving for climate neutrality by 2030. Alternative farming methods like vertical farming for example, are being adopted to help the city meet its environmental protection goals. 

Valentinas Civinskas, CEO of Leafood, Europe's largest vertical farm emphasised that agricultural practices are shifting not only in Lithuania but throughout entire Europe. A number of technologies including AI-driven crop management, renewable energy integration, and sustainable water management are being adopted to enhance agriculture. 

Leafood's vertical farm is located in an industrial zone of the capital and grows greens in areas that are not suitable for traditional farming methods. The presence of the farm within the urban limits enables the reduction of the supply chain and CO2 emissions. Significantly bringing down the environmental strain directly contributes to achieving the goals of the Nature Restoration Law, which aims to restore 90% of the EU's land by 2050. 

“Vertical farming allows for greens to be grown in stacked layers within controlled indoor facilities. This reduces the need for vast tracts of land and alleviates the environmental strain associated with conventional farming methods,” Civinskas explained. 

Leafood also uses up to 95% less water than traditional farms and 100% renewable energy to reduce the detrimental impact on the environment. Civinskas asserts that the continuous expansion of the talent pool is one of the most significant drivers in sustainable businesses, especially those operating in agriculture. For Vilnius, the supply of talent is essential for continuous innovation and emphasis on sustainability. In addition to sustainable practices, Civinskas emphasised the importance of a positive work environment.

The event’s high turnout underscored the importance of the President’s address, as anticipation and optimism filled the air. (Image source: Adobe Stock)

During his State Opening of Parliament Address, President Dr Julius Maada Bio on 6 August emphasised the significance of agriculture and food security to a nation's growth and stability

Given its power to create jobs, reduce dependency on essential food imports, boost export earnings from cash crops, and catalyse sustainable economic growth, President Bio has called for an increase in investment in the agriculture sector, highlighting that it is not only a safeguard for national security, but also a vision for a prosperous future. 

Yesterday's event at the Sierra Leone Parliament was marked by a lively and enthusiastic atmosphere, drawing a diverse and significant attendance. Parliamentarians, government ministers, members of the diplomatic corps, local leaders, and a large crowd of citizens filled the well of Parliament to hear President Julius Maada Bio address the second session of the sixth parliament.

The event’s high turnout underscored the importance of the President’s address, as anticipation and optimism filled the air. Various dignitaries and citizens assembled to highlight the inclusive nature of the event, reflecting a collective interest in the country’s governance and future direction.

President Bio detailed the accomplishments of his government, which were met with widespread approval from the majority present. He emphasised the significant strides made in various sectors, outlining achievements that ranged from economic reforms to infrastructural developments, while also laying out his plans for the coming years. 

“As we prioritise ‘FEED SALONE’ in our new Medium-Term National Development Plan, our vision for a robust food production system is private sector-led, transforming every aspect of our agricultural value chains," said President Bio. "My Government has focused on addressing key constraints such as finance, soil fertility, water management, mechanisation, quality seed input, infrastructure, and the deployment of technology and research to boost agricultural productivity."

The Korean donation significantly comes as a time when hunger is on the rise in Sierra Leone due to numerous reasons. (Image source: Adobe Stock)

The Republic of Korea has donated 11,520 MT of rice to the United Nations World Food Programme (WFP) as emergency aid to 81,600 Malian refugees and 287,000 school children across Guinea-Bissau, Mauritania, and Sierra Leone 

High food costs, coupled with climate crisis, conflicts and insecurity in West Africa is driving food out of reach for vulnerable families in the region. Across the three countries, school meals represent a critical safety net for vulnerable families and provide a significant incentive for parents to keep their children in school, boosting attentiveness in class and mitigating student dropouts. As schools have attempted to go back to normality following the COVID-19 pandemic, nutritious school meals and take-home rations play a key role in maximising student retention in schools and improving children’s nutrition.

In Guinea Bissau, where economic and climate-related crises are driving hunger and malnutrition up, WFP will distribute 2,400 mt of rice to 180,000 children in 850 schools for four months, providing essential nutritional support to schoolchildren. In Mauritania,the Korean contribution will be used to complement general food assistance to 81,600 Malian Refugees in the Mbera refugee camp for 11 months. This contribution will be partially used to provide school meals to 7,700 refugee children and 46,800 children from the host communities for nine months from October 2024 to June 2025.

The contribution towards the refugee response complements the cash-based response, thereby enabling refugee families that are most vulnerable to receive a complete and diversified food basket, particularly during the June-September period when these groups are often forced to resort to adverse coping strategies to make ends meet. 

Indeed, the Korean donation significantly comes as a time when hunger is on the rise in Sierra Leone due to numerous reasons including economic fallout linked to the Ukraine crisis, broader macroeconomic decline and lingering impacts of the COVID-19 pandemic, among others. 

"I would like to extend my heartfelt congratulations and deepest appreciation to the Republic of Korea for their unwavering commitment to humanitarian efforts and their dedication to making a positive difference in the lives of those in need,” said WFP’s country director & representative in Sierra Leone, Yvonne Forsen. “This act of generosity exemplifies the spirit of international cooperation and compassion that lies at the core of the World Food Programme mission."