Clarmondial advised the Food Securities Fund on the renewal of two working capital loans to agriculture companies in East and West Africa, following the successful repayment of their first loan cycles. The financing enables borrowers to support smallholder farmers in the implementation of sustainable practices and provide access to markets for their products. Both loans are being renewed at larger amounts, reflecting the borrowers’ strong performance and growth.
The borrower in East Africa works closely with smallholder farmers to promote reforestation on and off farms, establish village savings & loan associations to improve access to finance for rural women, and the distribution of improved cookstoves to reduce fuel consumption. Herbert Hatanga, Partner – East Africa, stated that “the Clarmondial team is excited to continue collaborating with the investee, enabling them to further strengthen the resilience of farmers in their supply chains”.
The borrower operating in West Africa is supporting farmers by disseminating good agriculture practices and facilitating access to small scale farm equipment to increase efficiency and reduce post-harvest losses. Soumaila Diakite, Partner – West Africa, said that “smallholder farmers benefit from having a reliable buyer, a commitment that our investee plans to strengthen by also investing in local processing capacity”.