IFAD makes landmark investment in impact fund helping rural SMEs
Rome, 23 April 2020 – In a continuation of its efforts to help small-scale farmers and micro-, small and medium size rural enterprises in developing countries create jobs and increase incomes, the International Fund for Agricultural Development (IFAD) announced today an investment of US$9 million (€8.4 million) into the Agri-Business Capital (ABC) Fund, a blended capital impact fund.
The investment was made possible thanks to a contribution from the Swiss Agency for Development and Cooperation. It is the first time that IFAD, a specialized United Nations agency and international financial institution, is investing directly into a private sector entity.
Under its private sector engagement strategy adopted in September 2019, IFAD can now directly fund private sector entities and invest in funds targeting rural small and medium size enterprises (SMEs) and small-scale producers’ cooperatives. This enables IFAD to fund a wider range of projects increasing poor rural peoples’ productive capacities, improving their benefits from market participation and promoting the use of climate-smart practices. IFAD’s strategy also aims to attract more private sector funding to the small-scale agriculture sector.