CashNews.co
BII and FMO are providing funding to expand the UK International Development-funded Commercial Agriculture for Smallholders and Agribusiness (CASA) technical assistance facility.
Each organization will contribute $3 million to the newly expanded facility, alongside the UK Government, for the period of 2024-2026. The goal is to extend the platform for at least another five years.
The facility addresses the financing challenges faced by agribusinesses in developing countries and aims to provide greater support to sustainable, inclusive agribusinesses.
Inclusive and commercially sustainable agribusinesses have the potential to transform the global agricultural system, benefiting both people and the planet. These businesses can drive demand for smallholder produce while helping farmers improve the quantity and quality of their yields. Agribusinesses also create decent jobs in areas like processing, logistics, and sales, while increasing access to nutritious food.
However, in order to grow, agribusinesses need access to financing, which they often struggle to obtain. In sub-Saharan Africa alone, there is a $74 billion finance gap in agribusiness, representing roughly 84% of demand. Additionally, many agribusinesses require specialized support to develop and implement strategies that strengthen smallholder farmer inclusion.
The CASA Plus facility will provide this necessary support by enhancing existing investments, identifying new investment opportunities, and addressing barriers to green and inclusive agribusiness investment.
The first phase of CASA, funded by UK International Development and managed by TechnoServe, a global nonprofit focused on inclusive agricultural growth, has already proven successful. It has worked with impact investors to identify agribusinesses in their portfolios that can benefit from tailored support to improve their inclusivity and climate resilience.
So far, the program has helped 40 agribusinesses reach around 116,000 smallholder farmers, providing improved services that have increased farmers’ incomes and climate resilience.
Source