Shamba Centre for Food & Climate’s Post

The 2024 Council on Smallholder Agricultural Finance (CSAF) State of the Sector report analyses lending data and insights from the portfolios of 19 financial institutions serving agricultural SMEs in emerging economies. In 2023, CSAF members, including Triodos Investment Management, issued loans totaling: 🌱 USD 697 million 🌱 to 675 businesses 🌱 across 55 countries Judith Santbergen, Fund Manager of Hivos-Triodos Fonds: “Challenges persist. Both lenders and borrowers have to navigate new regulations and are confronted with tangible effects of climate change and volatile markets. This reinforces our commitment to fostering the growth and development of agricultural businesses in Africa and Latin America, thereby catalysing the huge benefits this brings for small-scale farmers.” Find out more about the key trends and download the full report on our website. #Agrciultural #SMEs #EmergingMarkets #ImpactInvesting #Smallholders

📚 JUST RELEASED: Unleashing the Catalytic Power of Donor Financing to Achieve SDG 2 🌾💰 According to this new report published by the Global Donor Platform for Rural Development (GDPRD) and the Shamba Centre for Food & Climate, every donor dollar has the potential to mobilize four dollars in commercial finance. 📌When this happens: - Small and medium-sized producers in the agriculture and food sectors will have more financing - Domestic lenders will participate - Markets will deliver affordable borrowing prices 📌How can we make this happen? This report presents the four key findings and recommendations of an enquiry into sustainable finance in agrifood systems conducted in 2023 by the Shamba Centre for Food & Climate for Donor Platform members. The investigation included a series of interviews with donors, philanthropic organizations, public funds and blended capital funds on how to make their funding effective and act as an incentive for achieving SDG 2. The report underscores a growing risk appetite among donors and DFIs. This presents a unique opportunity to transform agrifood development finance. 👉 Read the full report: https://lnkd.in/dzQiCEqv #agrifood #sustainablefinance #donors #DFIs #agriSMEs #blendedfinance #SDG2 #zerohunger #privatesector Foreign, Commonwealth and Development Office Swiss Agency for Development and Cooperation European Commission Federal Ministry for Economic Cooperation and Development (BMZ) USAID KfW Proparco McKinsey & Company Acumen Incofin Investment Management Rabobank Convergence Blended Finance Bill & Melinda Gates Foundation Mastercard Foundation OECD Development The World Bank IFC - International Finance Corporation International Fund for Agricultural Development (IFAD) The Rockefeller Foundation EBRD Green Climate Fund Global Environment Facility AFEX Aceli Africa Council on Smallholder Agricultural Finance (CSAF) UNDP Food Systems for the Future Rabobank Contrast Capital Management

The 2024 Council on Smallholder Agricultural Finance (CSAF) State of the Sector report analyses lending data and insights from the portfolios of 19 financial institutions serving agricultural SMEs in emerging economies. In 2023, CSAF members, including Triodos Investment Management, issued loans totalling: 🌱 USD 697 million 🌱 to 675 businesses 🌱 across 55 countries Judith Santbergen, Fund Manager of Hivos-Triodos Fonds: “Challenges persist. Both lenders and borrowers have to navigate new regulations and are confronted with tangible effects of climate change and volatile markets. This reinforces our commitment to fostering the growth and development of agricultural businesses in Africa and Latin America, thereby catalysing the huge benefits this brings for small-scale farmers.” Find out more about the key trends and download the full report on our website. #Agrciultural #SMEs #EmergingMarkets #ImpactInvesting #Smallholders

According to its recently issued State of Blended Finance report, Convergence Blended Finance recorded 236 agriculture deals – representing 21% of the overall market) with a total deal volume of US$ 17.9 and a median deal size of $20 million. What do we learn? Compared with other sectors, transactions in the agriculture sector tend to be smaller compared to the market overall with most funding directly supporting mid-sized companies. The direct financing of companies is the only blended vehicle type that has proportionately grown in use in the sector over the past three years (33% of transactions in 2018-2020 to 61% in 2021-2023). Yet, as Convergence notes, scaling private investment will require increased use of aggregating financial vehicles, such as funds and facilities, rather than more direct financing of companies and projects. Agriculture transactions tend to be small with most project having financial needs of less than US$ 1 million. These smaller transactions sizes are inherent in the agriculture market but creates challenges for institutional investors who seek larger investment opportunities. Therefore, to make financing catalytic, funders should be focusing not only on direct project-level interventions but also on aggregation plays that pull larger investors into the space. But how to make this happen? According to Convergence, concessional capital is well suited for the agriculture sector given the risks, especially as the sector transitions to sustainable practices. Compared with climate mitigation transactions, climate adaptation transactions have more difficulty in attracting private investment. This is particularly true for the agriculture sector given the long-term focus of adaptation transactions, their complexity and likely short-term drop in productivity yields. A recent report by the Global Donor Platform for Rural Development and the Shamba Centre explored how donors can be bolder with their financing. Among its recommendations, it called for less timidity around blended finance. Specifically, donors should reduce transaction costs and share risks by working together to collectively pool their expertise, capital and risk appetite. https://lnkd.in/ebS5FuuB #blendedfinance #catalyticcapital #finance #SDG2 Oshani Perera | Kamal El Harty | Michelle Tang | Maurizio Navarra

🚀 Transforming African Agriculture: $75M Investment in Sustainable Development with Export Trading Group 🌾🌍 Exciting news! African Development Bank Group approved a $75 million financing package to support Export Trading Group (ETG), a leading conglomerate dedicated to advancing agriculture across Africa. This strategic investment includes $65 million from the Bank’s resources and $10 million in concessional co-financing to enhance ETG’s Sustainable Linked Loan facility. This initiative aims to bolster food security, engage 600,000 smallholder farmers, and empower women in agriculture. Through this collaboration, ETG will implement sustainability targets focused on decarbonization, zero deforestation, and gender empowerment, aligning with the Sustainable Development Goals. 🌱🌳 Join us in celebrating this significant step towards transforming Africa's agricultural landscape and fostering economic growth! 🌍 Read the full article by the African Development Bank Group here: https://lnkd.in/dQatws5p #SustainableDevelopment #Agriculture #Investment #Empowerment #AfricaRising

'The right capital at the right time...' a really useful overview from Acumen of the financial needs of agri-businesses and the continuum needed to support them across all stages of their journey. With input referencing Shared Interest Society Ltd partner Aceli Africa #agribusiness #finance #sociallending

🌱 Imagine a world where every smallholder farmer has access to financial services, empowering them to invest in their crops, improve yields, and break free from the cycle of poverty. Well, that world is closer than you think! Across the diverse landscapes of sub-Saharan Africa, a quiet revolution is underway. AgTech startups are wielding digital tools like magic wands, transforming the way farmers access financing. These tech-savvy heroes are bridging the gap between traditional banking and the fertile fields, and the results are nothing short of awe-inspiring. Came across this insightful report by IFC - International Finance Corporation. Link below Enjoy the read! #AgTech #GreenRevolution #financialinclusion

The Smallholder and Agri-SME Finance and Investment Network | IFAD - https://lnkd.in/gpsYci_j May, 2024. SAFIN Annual Progress Report 2023. The SAFIN Annual Progress Report 2023 captures the network’s achievements in fostering collaboration with the agricultural finance ecosystem, sharing market intelligence, advocating for small businesses and farmers, and building regional partnerships. The Smallholder and Agri-SME Finance and Investment Network (SAFIN) is a global multi-stakeholder network advancing inclusive agri-SME finance, designed to bridge the silos among the providers, seekers and enablers of finance by fostering greater connection, coordination and collaboration among these players. With more than 60 member institutions from across the agri-finance ecosystem, SAFIN is a dynamic space for knowledge-sharing, advocacy and co-creation around initiatives with the potential to move more capital and other non-financial resources closer to agri-SMEs. The SAFIN Secretariat is hosted by the International Fund for Agricultural Development (IFAD). International Fund for Agricultural Development (IFAD) FAO African Development Bank Group CGAP IFC - International Finance Corporation World Food Programme Rabobank Rabo AgriFinance CGAP European Commission Inter-American Development Bank Mastercard Foundation USAID IDLO - International Development Law Organization SME Finance Forum, Managed by the IFC (International Finance Corporation) International Trade Centre AGRA SEAF CEED Global Aceli Africa Smallholder and Agri-SME Finance and Investment Network (SAFIN) Agence Française de Développement Chemonics International Palladium: Make It Possible CABI Oikocredit TechnoServe #Digitalisation #Digitalization #Diversity #Commodities #AgriFinanceEcosystem #Funds #Funding #Impact #Inclusion #SocialImpact #Export #AgriBusiness #AgriBiz #FinancePartnerships #SDG5 #Partnerships #DigitalPartnerships #Capital #BusinessDevelopment #Marketing #Innovation #Technology #MarketInsights #Insights

Agricultural funding refers to financial support provided to farmers, agribusinesses, and related entities to enhance agricultural productivity and sustainability. This funding can come from various sources, including: 1. *Government Grants and Subsidies*: Programs designed to support farmers with direct payments, cost-sharing for equipment and technology, disaster relief, and conservation initiatives.    2. *Loans*: Offered by banks, credit unions, and specialized agricultural lenders to finance land purchases, equipment, operations, and infrastructure improvements.    3. *International Aid and Development Programs*: Support from organizations such as the World Bank, FAO, and various NGOs aimed at improving agriculture in developing countries through grants, technical assistance, and training. 4. *Private Sector Investment*: Venture capital, private equity, and corporate partnerships investing in innovative agricultural technologies and practices. 5. *Crowdfunding and Cooperative Models*: Farmers can also seek community-based funding through platforms or agricultural cooperatives pooling resources for shared benefits. Funding aims to promote sustainable practices, improve food security, and support rural development. www.loanbazaaronline.com https://lnkd.in/epcuDwM #Finance #loanservices #digitalmarketing #graphicdesigning #financialservices #startupfunding #FinancialAnalyst #loanbazaar #dsa #nbfc

Agricultural funding refers to financial support provided to farmers, agribusinesses, and related entities to enhance agricultural productivity and sustainability. This funding can come from various sources, including: 1. *Government Grants and Subsidies*: Programs designed to support farmers with direct payments, cost-sharing for equipment and technology, disaster relief, and conservation initiatives.    2. *Loans*: Offered by banks, credit unions, and specialized agricultural lenders to finance land purchases, equipment, operations, and infrastructure improvements.    3. *International Aid and Development Programs*: Support from organizations such as the World Bank, FAO, and various NGOs aimed at improving agriculture in developing countries through grants, technical assistance, and training. 4. *Private Sector Investment*: Venture capital, private equity, and corporate partnerships investing in innovative agricultural technologies and practices. 5. *Crowdfunding and Cooperative Models*: Farmers can also seek community-based funding through platforms or agricultural cooperatives pooling resources for shared benefits. Funding aims to promote sustainable practices, improve food security, and support rural development. www.loanbazaaronline.com https://lnkd.in/epcuDwM #Finance #loanservices #digitalmarketing #graphicdesigning #financialservices #startupfunding #FinancialAnalyst #loanbazaar #dsa #nbfc