Emerging and Growth Markets | March 21, 2023

Eco.business Fund stakes $10 million to Absa Bank to boost agribusinesses’ climate resilience in Kenya

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, March 21 – Eco.business Fund blends finance to support sustainable economic development in emerging markets. The Finance in Motion-managed fund inked an agreement with Absa’s Kenya division to expand lending to help agri-producers, aggregators, processors and exporters “achieve more biodiversity and climate friendly sustainable production and exports while alleviating food insecurity,” eco.business Fund’s Michael Evers said.

Eco.business Fund has received €67 million ($72 million) from Germany’s Ministry for Economic Cooperation and Development and German development finance institution, KfW, both of which co-founded the fund along with Conservation International.

Banks have been reluctant to lend to businesses in the agricultural value chain. To mitigate risks for Absa and encourage more agri-lending, eco.business will fund training on post-harvest loss reduction and financial literacy for 300 of the bank’s partners and clients.

Separately, eco.business is providing technical assistance to Family Bank in Kenya to boost its agri-lending practices.