New agreement aims to expand funds for farmers
![Picture1.png](/l/en/library/download/urn:uuid:c8673dde-a8a9-44f5-8e8b-4feb9d7cb7e6/idhlogo.png?scaleType=1&width=220&height=220)
Oikocredit and the IDH Farmfit Fund are aligning their approaches to reduce the financing gap for smallholders.
Oikocredit and the IDH Farmfit Fund have agreed to align their approaches to their sourcing and investment transactions with a view to financing agricultural cooperatives and other small and medium enterprises (SMEs) more efficiently.
The two organisations will share network and knowledge in producing countries to source, structure and monitor financing deals. They will also share risks and provide technical assistance as required to ensure the success and sustainability of their outreach.
The agreement combines Oikocredit’s strengths in impact investment with the fund’s specialised focus on smallholder farmers. It is expected to create strong synergies that lead to farmer income increases.
Agriculture is an essential component of the world’s economy, accounting for more than 25% of gross domestic product in many countries, according to the World Bank.
But farmers struggle to obtain the funds they need, and the smallholder gap has been estimated at USD 450 billion.
Hans Perk, Director Specialised Finance and Community Building at Oikocredit said, “Smallholder agriculture is the backbone of many emerging economies. The collaboration with IDH enables Oikocredit to invest more in smallholder farmers who are important in providing safe and affordable food for local communities and play a crucial role in the fight against climate change.”
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