AFRICA – Alliance for a Green Revolution in Africa (AGRA), has announced a partnership with Aceli Africa, a market incentive facility, to enhance capital flows for SMEs in the agriculture sector and support a financially inclusive agricultural transformation across Africa.
AGRA and Aceli have signed a letter of intent committing to jointly work together to test and scale up innovations that substantially drive down the cost and risk of financing SMEs in the agriculture space.
“This partnership with Aceli is a step in this direction, as the increased capital flows & technical assistance will enable the SMEs to unleash their potential and offer better services to smallholder farmers.
Aceli plans to support its 25 lending partners in mobilizing US$700 million in financing for agri-SMEs by 2025 with a focus on SMEs that are gender inclusive, improve food security, and practice climate-smart agriculture.
“Aceli Africa shares AGRA’s vision for an inclusive and sustainable agricultural transformation that creates economic opportunities, builds a resilient regional food system, and stewards the natural environment. Achieving this vision is only possible if we can unlock the growth and impact potential of agricultural SMEs,” Aceli Africa CEO Brian Milder said.
“Building on AGRA’s leading role as a convener and advocate and Aceli’s data-driven approach to mobilizing private sector lending, together we can address the longstanding barriers that limit the flow of capital to agricultural SMEs.”
AGRA and Aceli are like-minded institutions that will partner specifically in promoting innovations that address the barriers to capital flowing to agricultural SMEs at scale.
With today’s announcement, AGRA and Aceli Africa also announce the first call for an Innovation Challenge for sustainable, scalable, and innovative business development solutions to improve the quality of financial statements among agricultural SMEs.
“As AGRA we want agricultural SMEs to grow and for that growth access to finance is key. Our partnership with Aceli Africa seeks to address the root cause of the lesser return on Agri SME finance by investing in innovations that reduce the cost and risk of financing smaller SMEs” said Hedwig Siewertsen, Head Innovative Finance.
Through the collaboration, Aceli and its network of private sector lending partners will also contribute to AGRA’s work to connect SMEs to capital providers through the Agribusiness Deal Room to support SMEs.