ImpactAlpha, April 3 – The Agri-Business Capital Fund, which is managed by Bamboo Capital and Injaro Investments, has inked loans totaling €2.3 million ($2.5 million) to support smallholder farmers and agri-processors in three underserved markets.
In Benin, ABC Fund invested in Africa Négoce Industries, which processes raw cashews, to ramp up purchasing from 40,000 smallholder farmers and secure organic certification. Promo Fruits, also in Benin, will use €800,000 in debt to finance equipment, manufacturing and working capital costs, as well as farmer training, for its pineapple juice processing operation.
Malian poultry feed manufacturer Groupe Diakhate will use ABC Fund’s loan to purchase raw materials, and Ugandan coffee processor Matale Hill Brothers will cover its working capital expenses and grow its network of smallholder suppliers.
ABC Fund also provided $2 million in credit to Nigerian microfinance institution Grace and Mercy to develop and implement a loan product for rural women working in agriculture.
ABC Fund was designed in 2016 to drive capital to Africa and Latin America’s agriculture sectors. The fund has made investments totaling €43 million to 28 companies and cooperatives in 11 countries. Its capital has reached more than 170,000 farmers, 41% of whom are women, according to its most recent impact report.