IDH Farmfit Fund and Oikocredit announce strategic partnership
IDH Farmfit Fund and Oikocredit announce strategic partnership
Partnership aimed at reducing the global financing gap for smallholder farmers.
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Social impact investor Oikocredit and the IDH Farmfit Fund have announced a partnership aimed at reducing the global financing gap for smallholder farmers.
The two organisations have signed a collaboration agreement, committing to creating synergies in their sourcing and investment transactions.
Globally, the estimated financing need of smallholders is $450 billion, while the total amount available to farmers in developing economies is a mere $9 billion. Both Oikocredit and the IDH Farmfit Fund have focused on closing financing gaps by providing loans to cooperatives and other small and medium enterprises (SMEs) in the smallholder farming sector.
By joining forces, the IDH Farmfit Fund and Oikocredit will streamline their interventions, allowing both to accelerate impact. Concretely, the two organisations will align investment processes and criteria and will make use of each other’s unique and extensive network and knowledge in producing countries to source, structure and monitor deals. Additionally, Oikocredit and the IDH Farmfit Fund will share risks and provide technical assistance where necessary, ensuring the success and sustainability of their interventions.
Roel Messie CEO of IDH Investment Management and IDH Farmfit Fund said, “The Farmfit Fund and Oikocredit have previously partnered 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.”
Hans Perk, director for specialised finance and community building at Oikocredit said, “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.”
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