Financing for the agricultural sector
Agriculture plays a key role in many emerging economies: around three-quarters of low-income households around the globe depend on this sector. No country has ever successfully reduced poverty without first developing its agricultural sector. The provision of financing to organizations along the entire value chain can help to drive the growth of sustainable agriculture.
Focus on smallholder farmers
responsAbility provides financing to institutions that collect the agricultural produce of smallholder farmers for export, as well as to cooperatives owned by the smallholders themselves. These cooperatives gather, refine and/or process produce such as coffee, cocoa, fruit, nuts, honey and sugar and then export it to other markets.
Investing in the value chain
responsAbility can also invest in privately-owned companies that purchase agricultural produce or in international buyers that purchase goods from exporters, provided the investees form part of a value chain that includes smallholder farmers. Other participants in the value chain that can benefit from financing include suppliers of seed and fertilizer or providers of technical services. In this respect, organizations that offer financial services to smallholder farmers also qualify for investment.
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