Signing ceremony between CEOs of Proparco and One Acre Fund, respectively Françoise Lombard, and Eric Pohlman.
On Wednesday 15 May, on the sidelines of the 2024 African CEO Forum taking place in Kigali, and in the presence of the CEO, Françoise Lombard, Proparco announced a USD 10 million financing to One Acre Fund, during a signing ceremony with One Acre Fund’s CEO, Eric Pohlman.
This loan from AFD Group’s private sector arm, Proparco, will boost One Acre Fund’s work, which offers farmers access to quality agricultural inputs in its countries of operation in sub-Saharan Africa. With its unique positioning in Africa, One Acre Fund works to improve the quality of life and the health of smallholder farmers and their families by providing them with support throughout the agricultural cycle.
Improving the food security and agricultural yields of African rural communities: with this USD 10 million line of credit, Proparco will support One Acre Fund’s programmes in Africa where food sovereignty is absolutely essential.
Ambassador of France Antoine Anfré in photo with the responsibles of Proparco and One Acre Fund.
Throughout Africa, One Acre Fund works with over 4 million smallholder farmers across 9 countries (Burundi, Kenya, Ethiopia, Malawi, Nigeria, Tanzania, Rwanda, Uganda and Zambia), including 2 million farmers in Rwanda, 1 million in Kenya and almost half a million in Malawi.
One Acre Fund’s main activity consists of pre financing agricultural inputs and providing systematic training to groups of farmers. The aim is to enable the farmers to produce more food, increase their income, and develop their resilience in the face of climate change and economic shocks, through agroforestry and other services tailored to the specific needs of these smallholders, whose average farm size is half a hectare.
One Acre Fund is providing tree seedlings to combat erosion, flooding and drought, agricultural insurance, optimal seed selection, increasing crop diversity, improving seed quality.
Financing the One Acre Fund initiative is fully in line with the Food & Agriculture Resilience Mission (FARM), launched in 2022 by French President Emmanuel Macron, alongside the European Union, the G7 and the African Union. While Proparco already disburses between €100 million and €150 million each year to consolidate agricultural value chains in Africa, financing needs remain insufficiently covered, especially for the smallest farmers and stockbreeders, who are difficult to reach and more risky from a financial perspective.
The additional resources mobilised by France and made available to Proparco as part of this initiative are specifically earmarked for direct financing of agri-food businesses that experience difficulties accessing credit, as well as for agricultural MSMEs, by financing banking partners and microfinance institutions, to support smaller projects more effectively.
This action strengthens the coverage of the financing needs of the entire agricultural value chain in Africa – from agricultural MSMEs to agri-businesses – therefore enhances the production, sustainability and resilience of food systems in rural areas in more fragile and riskier environments. France’s support for the One Acre Fund is also part of the Choose Africa initiative designed to support African entrepreneurs and the broader French cooperation strategy in the African agricultural sector, particularly in Kenya and Rwanda.
About Proparco Proparco : a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco’s new Strategy 2023-2027 – “Acting together for greater impact” – enables, strengthens and amplifies the different ways in which it works with its partners.
About One Acre Fund : One Acre Fund is a non-profit organization supporting smallholder farmers in rural sub-Saharan Africa to build resilient communities by providing them with the agricultural resources, financing, and training they need to grow more food and become prosperous. Founded in 2006, One Acre Fund currently serves more than one million farmers in nine African countries. (End)