Agri-Business Capital Fund makes two new investments in West Africa
The Agri-Business Capital Fund (ABC Fund) has provided loans worth a combined amount of €1.2 million to Anatrans, a cashew nut processor based in Burkina Faso, and Maphlix Trust Ghana Limited (Maphlix), a producer and processor of tubers and vegetables.
The loan provided to Anatrans will help the business facilitate market access for six farmer groups with over 1,200 members. It will secure revenue for these farmers at the time of the raw cashew nut purchase, while also providing additional revenue at the end of the harvesting period. The loan will enable the farmers to receive premiums under the Organic and Fairtrade certifications.
The loan provided to Maphlix will help the company expand sweet potato production, resulting in a significant increase in farmer revenues. ABC Fund’s financing will act as a catalyst for Maphlix to secure more supplier contracts in order to further increase its network of smallholder farmers.
The investments by the ABC Fund, which is managed by Bamboo Capital Partners in partnership with Injaro Investments, come at a time when many developing countries are grappling with the ongoing COVID-19 pandemic, thereby placing even greater importance on ensuring business continuity and financial support to SMEs in a strategic sector. It follows the ABC Fund’s €800,000 loan provided to Dragon Farming, a Ghana-based soya milling and aggregation company in June and the $3 million loan provided to INSOTEC, a finance provider for Ecuador’s agricultural sector, in August.
Jean-Philippe de Schrevel, founder and managing partner of Bamboo Capital Partners, commented: “We are pleased that even during the COVID-19 crisis, the ABC Fund continues to invest in the future of African agribusiness. The loans provided to Anatrans and Maphlix will help both businesses scale significantly in the coming months, provide jobs to boost the local economies, and ultimately improve the livelihoods of people living in the communities they impact.”
Jerry Parkes, CEO of Injaro Investments, added: “Providing funding to agribusinesses during this period is pivotal to enhancing food security and protecting the economic livelihoods of families. This investment will contribute to improving the performance of these businesses and afford them the opportunity to impact even more livelihoods. It also demonstrates the capacity of blended-finance vehicles to make a positive social impact even in challenging times.”
The ABC Fund is a blended-finance impact fund which provides catalytic financing to underserved yet profitable segments of agribusiness value chains in developing countries. The ABC Fund deploys loans and equity investments in farmer organisations, rural SMEs and financial institutions.
The ABC Fund was initiated by the International Fund for Agricultural Development (IFAD) in partnership with, and is currently funded by investments from, the European Union, the Organisation of African, Caribbean and Pacific States (OACPS), the Luxembourg Government and the Alliance for a Green Revolution in Africa (AGRA).
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