Incofin IM signed agreements with the European Investment Bank (EIB), PROPARCO (the subsidiary of Agence Française de Développement focused on private sector development), the Belgian Investment Company for Developing Countries (BIO) and the agRIF Cooperatief U.A. for a total commitment of close to EUR 2 million.
The agreement, signed in September 2018, will enable the provision of tailored capacity-building support under the agTAF, a new Technical Assistance Facility that will complement the agRIF Fund, a close-ended fund managed by Incofin IM that invests in financial intermediaries lending to the rural sector. The EIB’s contribution to the new agTAF Facility is EUR 1 million.
The objective of the agTAF is to foster financial inclusion of smallholder farmers and rural entrepreneurs through increasing outreach and improving the capacity of selected financial institutions, producer organizations and agricultural value chain SMEs. The agTAF will support investees of the agRIF Fund in developing innovative products and channels to bring affordable financial services closer to underserved rural and agricultural clients, as well as in improving risk management techniques and overall financial, social and environmental performance.
“Lending to the agricultural sector is crucial for the development of rural areas; yet can be challenging for financial institutions. Supporting technical assistance alongside our investment in the agRIF Fund is imperative for us to ensure that microfinance companies are not only financed but also receive the necessary technical support to improve their business with smallholder farmers”, says Hannah Siedek, Microfinance Loan Officer at the EIB.
Original source: EIB
Published on 26 November 2018