Impact, but not charity
Impact loans in the agricultural sector of developing countries and emerging markets catalyzes job creation and social development because the overwhelming majority of the workforce is in agriculture. Lending to farmers and cooperatives through AgroFides produces measurable impacts on social development and the environment combined with financial gains.
Opportunities in Africa
AgroFides recognizes the immense opportunity currently presented to creditors looking to do business in sub-Saharan Africa; in the last decade, more than half of the world’s most rapidly expanding economies have been in Africa. Moreover, the World Economic Forum predicts that by 2030, 43% of Africans will belong to the middle or upper classes, which will translate to a higher level of demand for goods and services (household consumption is expected to rise to $2.5 trillion), suggesting lucrative opportunities in African businesses. Ghana has emerged as an economic powerhouse with Real GDP growth of 8.3% in 2018 in conjunction with rising incomes, lower poverty, and better health and education outcomes.
Why Lend to Farmers in Africa
Improving economic conditions in Africa is magnified when you consider the continent’s agricultural sector. According to the World Economic Forum, Africa’s agricultural industry will reside as the most valuable segment of the continent’s macroeconomy due to a projected household consumption aggregate of $740 billion spent on food and beverages in 2030. Nevertheless, 60% of the world’s unused arable land is in Africa, meaning there is a tremendous opportunity for additional growth to total agricultural output. Doing business in Africa’s agricultural sector is where an impact lending ethos and competitive returns are the same.
High Repayment Rates
Conventionally, banks and microfinance institutions overestimate the risk associated with smallholder and medium-scale farmer lending. By rethinking the conventional approach to lending to farmers, focusing on farmers' productivity and appropriate loan terms, the risks associated with lending to farmers will decrease.
AgroFides provides an opportunity for your institution to advance its core social and environmental goals while maintaining and growing its overall endowment and fund through agro lending in developing countries and emerging markets.
As an alternative to investment through private equities, AgroFides provides your family office with an opportunity to make more direct loans to individuals and their businesses in developing countries and emerging markets. We offer your clients meaningful connections to their impact lending goals.
IMPORTANT DISCLOSURES: AGROFIDES IS NOT A REGISTERED BROKER-DEALER, FUNDING PORTAL, OR INVESTMENT ADVISER. THE INFORMATION ON THIS WEBSITE DOES NOT CONSTITUTE INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. THE INFORMATION ON THIS SITE IS FOR DISCUSSION PURPOSES ONLY AND IS NOT AN OFFER OR SOLICITATION TO PURCHASE OR SELL ANY SECURITIES OR FINANCIAL PRODUCTS. NONE OF THE INFORMATION ON THIS SITE TAKES INTO ACCOUNT ANY PERSON’S PERSONAL OBJECTIVES, FINANCIAL SITUATION, OR NEEDS AND YOU MUST DETERMINE WHETHER THE INFORMATION IS APPROPRIATE IN TERMS OF YOUR PARTICULAR CIRCUMSTANCES. WE RECOMMEND YOU OBTAIN FINANCIAL, LEGAL AND TAXATION ADVICE BEFORE MAKING ANY FINANCIAL INVESTMENT OR LENDING DECISION.