IFC and AGRA Partner to Increase Agricultural Productivity and Food Security

Published on 17th February 2009

The International Finance  Corporation (IFC), a member of the World Bank Group, joined forces with the  Alliance for a Green Revolution in Africa (AGRA)  in Nairobi on 13th February 17, 2009 to unlock  credit and financing for small-scale farmers and agribusinesses across  sub-Saharan Africa. Low agricultural lending in Africa is one of the reasons hindering farmers’ ability to achieve their full potential,  and escaping hunger and poverty. 

 

The partners’ collaboration will help expand or scale up AGRA’s existing innovative financing projects to reach more countries and key stakeholders in the African agricultural value chain. Specifically, the partnership between IFC and AGRA focuses on developing market-based incentives and tools to increase agricultural productivity. For example, IFC  will scale up AGRA’s partnerships with investors and national commercial banks to make loans available to farmers, agribusinesses like smaller seed companies, expand and finance agro-dealer networks to increase availability of farm inputs and expertise in rural areas, and support ‘fertiliser value chain’ financing, including regional procurement of fertiliser. 

 

“The challenges to growing Africa’s agribusiness are great. But so are the opportunities. IFC is committed to helping Africa capitalise on these opportunities by playing a catalytic role of bringing a wide range of partners together to deliver practical market based solutions. Our alliance with AGRA is a very important step in this direction,” said Lars Thunell, Executive Vice President and CEO of IFC. 

 

AGRA and IFC will work together on the following ventures:   

 

-Providing credit guarantees to Africa-based financial institutions in    order to leverage significant private sector financing for agriculture.  

 

-Expanding AGRAs Agro-dealer Development Programme to recruit and train    significantly more agro-dealers. 

 

-Providing financing to the African Seed Investment Fund (ASIF), which provides reimbursable loans to small to medium African seed companies. AGRA has already made a $12 million investment in the ASIF. 

 

-Developing and funding a financing mechanism for fertiliser wholesale companies.    Exploring the feasibility of establishing the West African Agribusiness Investment Fund (WAAIF) to provide long-term commercial risk capital to small and medium agribusinesses.   

 

-Supporting, with financial assistance if viable, the African Fertiliser Procurement Facility.  

 

-Developing, funding and implementing an advisory services programme to provide technical advice and support to farmers or businesses that will    benefit from this initiative.


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