IFAD's new investment programme to boost private funding of rural businesses and small-scale farmers
ROME, July 14, 2021 /PRNewswire/ -- Rural businesses, which are so vital for transforming our food systems, will get a much needed boost from an ambitious new financing programme launched today by the UN's International Fund for Agricultural Development (IFAD), as part of its broader efforts to address rising hunger and poverty levels in the world's poorest countries.
The Private Sector Financing Programme (PSFP) aims to spearhead an increase in much-needed private investment in small and medium-sized enterprises (SMEs), farmers' organizations and financial intermediaries servicing small-scale farmers, which are too often neglected by investors. It will provide loans, risk management instruments (such as guarantees), and equity investments.
"We can end poverty and hunger! But for this we urgently need to stimulate more private sector investments to rural areas and unlock the immense entrepreneurial potential of millions of rural SMEs and small producers," said Gilbert F. Houngbo, President of IFAD. "With access to capital, they can attract more investors and partners, grow their businesses and create employment opportunities- especially for young people and women."
As part of its launch, the PSFP announced its first loan of US$5 million to a Nigerian social impact enterprise, Babban Gona, which has a strong background in successfully moving small-scale farmers from subsistence to a more market-orientated model.
The loan will help Babban Gona support 377,000 small-scale rice and maize producers in north of Nigeria with a comprehensive package of training, quality inputs, and marketing services. By committing these funds, the PSFP aims to stimulate larger contributions from other investors and help Babban Gona meet its target to raise $150 million to reach millions of small producers.
Lack of financing and access to financial services prevents rural SMEs and small-scale farmers from harnessing opportunities offered by a growing demand for more diverse and nutritious food globally.
Even before the COVID-19 pandemic, financial service providers only met about 30 percent of the $240 billion that rural households required in their demands for finance.
IFAD aims to mobilise $200 million for the PSFP from public, private and philanthropic sources to leverage a total of $1 billion in private investments. This will improve the lives of up to 5 million small-scale farmers. The PSFP will focus its investments on job creation, women's empowerment, building farmers' resilience and accelerating climate change mitigation.
Contact: Caroline Chaumont
Mobile: +39 3496620155
Email: [email protected]
SOURCE International Fund for Agricultural Development
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article