Portfolio Partner Profile
Agri-Business Capital (ABC) Fund
The Agri-Business Capital (ABC) Fund is an impact fund serving smallholder farmers and small and medium-sized agribusinesses in developing countries. Launched in 2019 and managed by Bamboo Capital Partners, in collaboration with Injaro and Agriterra, the fund’s mission is to provide capital and technical assistance to underserved agribusiness segments, while promoting sustainable and climate-resilient practices.
The ABC Fund’s primary impact goal is to improve the livelihoods of smallholder farmers in local agriculture and agribusiness value chains – particularly women and youth – while supporting the development of sustainable agricultural practices. To achieve this goal, the ABC Fund primarily provides mostly debt to smallholder farmers’ organizations and rural SMEs either directly and through intermediaries. The fund targets agribusinesses that are a part of multiple agricultural value chains and whose initiatives increase productivity, innovation, local value addition, access to finance and markets, and job creation.
Through its investments, the ABC Fund addresses gender inequality and youth unemployment in smallholder farming. As agribusinesses grow sustainably and build their capacity, they create economic and employment opportunities for young women and men, in turn reducing rural poverty and boosting agribusiness value chains. Ensuring the sustainability of value chains is especially important as the global food system is threatened by climate change and population growth. To that end, the ABC Fund gives special attention to projects that help smallholder farmers adapt to climate change and reduce greenhouse gas emissions.
The ABC Fund was initiated by the International Fund for Agricultural Development (IFAD) in partnership with, and is currently funded by investments from, the European Union, the Organization of African, Caribbean and Pacific States (OACPS), the Luxembourg Government, the Alliance for a Green Revolution in Africa (AGRA) and IFAD. The IFAD investment was made possible thanks to financial support from the Swiss Agency for Development and Cooperation (SDC). The ABC Fund is managed by Bamboo Capital Partners in partnership with Injaro as investment advisors and with technical assistance led by Agriterra.
The fund has a target size of EUR200 million.
Featured Impact Story
Promoting financial and environmental resilience
Socak Katana is a cocoa cooperative based in Côte d’Ivoire. Socak Katana procures raw cocoa from smallholder farmers before processing it ready for sale to local and international buyers. Its mission is to improve the income levels and living conditions of the cocoa producers by helping them transition from an informal to an organised production system. The cooperative has 3,085 members, of which a third are young people. Socak Katana promotes sustainable cocoa production and educates producers on issues related to gender balance, climate change, and child protection. The cooperative is Fair Trade certified and over half of its members are UTZ certified.
The ABC Fund has supported Socak Katana since 2019 to facilitate the purchase of cocoa beans and help ensure revenues for cocoa producers. Socak Katana makes advance payments to the farmers for their annual cocoa production. By being members of the cooperative, smallholder farmers gain access to certifications which generate a higher price for their production as well as financing for projects that benefit the entire community. In 2020, half of Socak Katana’s premium income was spent on inputs, equipment to collect the cocoa beans, and the construction of two nine-classroom schools and the distribution of school stationery for the producers’ children. As well as financing, the ABC Fund also provided technical, advisory services and training to Socak Katana to help the cooperative develop a strategic plan and strengthen financial and risk management processes.
Learn more in the video below.
Anatrans Cashew Business
Anatrans is a cashew processor based in Burkina Faso. The company purchases raw cashew nuts from a network of farmer groups and cooperatives before sorting, drying, shelling, packaging, and selling the processed products to export markets. The company’s factory employs over 1,500 people, of whom 94% are women. The ABC Fund loan to Anatrans is helping the cashew business facilitate market access for six farmer groups with over 1,200 members. The loan also enables the farmers to receive premiums under the Organic and Fair trade certifications. With this financing, Anatrans is able to generate employment opportunities for up to 1,500 people, as well as funding community projects to benefit the lives of over 7,000 residents in the region.
CABF Fair Trade
CABF is a fair trade certified cocoa cooperative located in Zégban in the Southern Region of Côte d’Ivoire. The cooperative started in 2004 with only 127 cocoa members, and has grown to include over 2,800 farmer members. CABF’s mission is to improve members' living conditions and fight against poverty in rural areas through job creation.
The ABC Fund invested in CABF to help secure market access and revenues for its cocoa farmers by providing the cooperative with the additional funds needed to buy their seasonal production. Because of the financing, CABF was able to pre-finance their cocoa harvest, honor international purchase commitments, and secure the certification premium for its members.