Launch of an Innovative Impact Fund for Agricultural Entrepreneurship (ABC Fund) with the Support of Luxembourg
18th February 2019
A new impact fund for agricultural entrepreneurship, the Agri Business Capital Fund (ABC Fund), developped by the International Fund for Agricultural Development (IFAD) in close collaboration with the government of Luxembourg, the European Union, the African, Caribbean and Pacific Group of States (ACP) and the Alliance for a Green Revolution in Africa (AGRA), has been launched during the annuel meeting of Member States of the IFAD. Ms Paulette Lenert, Luxembourg Minister of Development Cooperation and Humanitarian Affair, was present.
Today, it is estimated than more than half of the 1.2 billion young people worlwide live in rural areas; and they are two to three times more likely than adults to be unemployed.
This innovative impact fund will help rural entrepreneurs, with a particular focus on young people, in the agricultural sector access to finance through private sector investment in rural, small and medium-sized enterprises (SMEs), farmer’s organisations. Indeed, these enterprises often find it hard to access finance from traditional institutions. The fund aims to raise EUR 200 million over the next 10 years. It will provide loans adapted to the needs of SMEs. It will work through Financial institutions for loans in the range of EUR 20 000 to EUR 200 000, while providing loans between EUR 200 000 and EUR 800 000 directly to investees.
The ABC fund will be based in Luxembourg and managed by Bamboo Capital Partners.
To read the press release in French from the Luxembourg Directorate for Development Cooperation and Humanitarian Affairs click here and in English from IFAD click here
For more information about the Agri Business Capital Fund click here
