EU provides €45 million in support for smallholder agri-businesses in rural Africa

Commissioner for International Cooperation and Development Neven Mimica was in Rome to launch the new Agri-Business Capital (ABC) Fund, which will help deliver on the Africa-Europe Alliance for Sustainable Investments and Jobs.

Speaking at the launch, organised by the International Fund for Agricultural Development (IFAD), Commissioner Mimica said: “The EU is committed to boosting agri-business investments, strengthening livelihoods and creating sustainable jobs in rural areas, especially among traditionally under-served communities. The ABC Fund will help us achieve this – which is why it has our full backing.”

The EU has made €45 million available to the fund. On top of this, the Luxembourg Government and the Africa Green Revolution Alliance, an international NGO, are contributing €5 million and $5 million respectively. The new ABC Fund, established by IFAD, is primarily geared towards individual smallholders and farmers’ organisations, with loan sizes from $25 000 – $1 million (approximately €22 000 – €885 000), thus improving their access to finance. This “missing middle” has the potential to be profitable and to impact development, but has lacked sufficient funding until now. It is expected to mobilise more than €200 million in investments and could benefit up to 700 000 households in rural areas.

Original source: European Commission
Published on 15 February 2019