Lending for African Farming

Lending for African Farming

Lending for African Farming – LAFCo serves the day-to-day working capital needs of agricultural businesses and farmer cooperatives, particularly those operating in staple food crop value chains

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Value Chains

Lending for African Farming – LAFCo’s primary purpose is to provide working capital financing for borrowers working in food crop value chains, specifically those involved in domestic and intra-Africa trade. LAFCo considers a wide range of food crop value chains, including but not limited to:

  • Cereals, pulses, nuts, and root crops
  • Fruit and vegetable horticultural crops, whether fresh or for processing
  • Oilseeds for edible oil or animal feed
  • Animal feed
  • Dairy
  • Poultry and other livestock

Smallholder Farmer Involvement

Lending for African Farming – All qualifying SME borrowers must be delivering a clear benefit to smallholder farmers, either by sourcing crops or animals from farmers or by selling productivity-enhancing inputs to them. LAFCo defines smallholder farmers as those cultivating less than 10 hectares.

Borrower Size

Lending for African Farming – LAFCo is intended primarily to serve SMEs meeting the IFC definition, namely, having at least two of the three following characteristics:

Gross assets of less than US$ 15 million; Annual turnover of less than US$ 15 million; or Fewer than 300 employees. However, LAFCo is permitted to lend to larger corporate entities provided the social and environmental considerations described online are met.

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Borrower Compliance and Characteristics

LAFCo borrowers must also meet the following criteria at the time of application and throughout the term of any LAFCo facility for which they may be approved:

  • Have at least two years of operating activities.
  • Be able to submit at least two years of audited financial statements.
  • Be a legal entity which offers sufficient protection to its creditors.
  • Demonstrate the ability to responsibly service working capital loans (i.e., with standard credit assessment and underwriting criteria).
  • Comply with the national laws, local regulation and/or as the case may be with the rules and license requirements applicable to their industry.
  • Comply with LAFCo’s Exclusions List, which is based on International Finance Corporation’s (IFC) principles, that excludes production or trade in any product or activity deemed illegal under host country laws and regulations or international conventions and agreements.
  • Comply with applicable local environmental and social performance requirements, including labor and health and safety as to each industry. Comply with LAFCo’s anti-money laundering and anti-corruption policies.

How to Apply for Lending for African Farming

Interested and qualified applicants should, Click here to Apply

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