BII and FMO are funding the expansion of the UK International Development-funded Commercial Agriculture for Smallholders and Agribusiness (CASA) technical assistance facility.
The facility addresses the lack of access to finance for agribusinesses in developing countries and increases support for successful, inclusive agribusinesses.
Commercially sustainable and inclusive agribusinesses have the potential to transform the global agricultural food system in ways that work for people and the planet. They can drive demand for produce from smallholders while supporting farmers to increase and improve the quality of their yields. Agribusinesses can also create decent jobs in processing, logistics and sales, and increase availability of nutritious food.
In order to grow, agribusinesses need to access financing to invest in their own businesses. However, they struggle to access appropriate finance. In sub-Saharan Africa alone, agribusinesses face a $74 billion finance gap. This is equivalent to roughly 84 per cent of demand[1]. They also often need specialist support to develop and implement commercially viable strategies that strengthen the inclusion of smallholder farmers.
That’s where CASA Plus comes in. BII and FMO will each contribute $3 million to the new, expanded facility alongside the UK Government between 2024-2026, with the intention to extend the platform by at least five years.
CASA Plus will offer support to enhance existing investments, find new investment opportunities, and tackle barriers to investment in green and inclusive agribusinesses.
The successful first phase of the project – funded by UK International Development and managed by TechnoServe, a global non-profit organisation focused on inclusive agricultural growth – has been working with impact investors[2] to identify businesses in their portfolio which can benefit from tailored support to strengthen and/or make their business models more inclusive and climate resilient. To date it has helped 40 agribusinesses to reach approximately 116,000 smallholder farmers with improved services, boosting farmers’ incomes and climate resilience.
[1] CASA, ISF Advisors (2022). The state of the agri-SME sector – Bridging the finance gap.
[2] CASA TAF partners with leading impact investors with agriculture portfolios in low and lower middle income countries across Africa and Asia, including BII, FMO, Norfund, Common Fund for Commodities (CFC), DOB Equity, C4D Partners, Acumen and the Acumen Resilient Agriculture Fund (ARAF).
