Portfolio Partner Profile
Agri-Business Capital (ABC) Fund
The Agri-Business Capital (ABC) Fund is an impact fund serving smallholder farmers and small and medium-sized agribusinesses in developing countries. Launched in 2019 and managed by Bamboo Capital Partners, in collaboration with Injaro and Agriterra, the fund’s mission is to provide capital and technical assistance to underserved agribusiness segments, while promoting sustainable and climate-resilient practices.
The ABC Fund’s primary impact goal is to improve the livelihoods of smallholder farmers in local agriculture and agribusiness value chains – particularly women and youth – while supporting the development of sustainable agricultural practices. To achieve this goal, the ABC Fund primarily provides mostly debt to smallholder farmers’ organizations and rural SMEs either directly and through intermediaries. The fund targets agribusinesses that are a part of multiple agricultural value chains and whose initiatives increase productivity, innovation, local value addition, access to finance and markets, and job creation.
Through its investments, the ABC Fund addresses gender inequality and youth unemployment in smallholder farming. As agribusinesses grow sustainably and build their capacity, they create economic and employment opportunities for young women and men, in turn reducing rural poverty and boosting agribusiness value chains. Ensuring the sustainability of value chains is especially important as the global food system is threatened by climate change and population growth. To that end, the ABC Fund gives special attention to projects that help smallholder farmers adapt to climate change and reduce greenhouse gas emissions.
The ABC Fund was initiated by the International Fund for Agricultural Development (IFAD) in partnership with, and is currently funded by investments from, the European Union, the Organization of African, Caribbean and Pacific States (OACPS), the Luxembourg Government, the Alliance for a Green Revolution in Africa (AGRA) and IFAD. The IFAD investment was made possible thanks to financial support from the Swiss Agency for Development and Cooperation (SDC). The ABC Fund is managed by Bamboo Capital Partners in partnership with Injaro as investment advisors and with technical assistance led by Agriterra.
The fund has a target size of EUR200 million.
Featured Impact Story
Impact Story
Promoting financial and environmental resilience
Socak Katana is a cocoa cooperative based in Côte d’Ivoire. Socak Katana procures raw cocoa from smallholder farmers before processing it ready for sale to local and international buyers. Its mission is to improve the income levels and living conditions of the cocoa producers by helping them transition from an informal to an organised production system. The cooperative has 3,085 members, of which a third are young people. Socak Katana promotes sustainable cocoa production and educates producers on issues related to gender balance, climate change, and child protection. The cooperative is Fair Trade certified and over half of its members are UTZ certified.
The ABC Fund has supported Socak Katana since 2019 to facilitate the purchase of cocoa beans and help ensure revenues for cocoa producers. Socak Katana makes advance payments to the farmers for their annual cocoa production. By being members of the cooperative, smallholder farmers gain access to certifications which generate a higher price for their production as well as financing for projects that benefit the entire community. In 2020, half of Socak Katana’s premium income was spent on inputs, equipment to collect the cocoa beans, and the construction of two nine-classroom schools and the distribution of school stationery for the producers’ children. As well as financing, the ABC Fund also provided technical, advisory services and training to Socak Katana to help the cooperative develop a strategic plan and strengthen financial and risk management processes.
Learn more in the video below.
Impact Story
Developing local animal feed manufacturing to support the poultry value chain in Mali
Groupe Diakhate is a poultry feed manufacturer based in Mali. Founded in 2014, the organization originally imported and locally distributed nutritional feed that supported more frequent egg-laying. More recently, the organization began independently producing their feed, including sourcing and locally processing the materials. Groupe Diakhate offers a partnership to cooperatives that provide the raw materials, as well as a customer loyalty program for farmers. Additionally, the company has a team of veterinarians who are dedicated to monitoring and assisting clients with issues such as breeding techniques and farm hygiene. The veterinarian team also provides advice on medical issues including the importance of vaccinations, as well as offers a 3-week training program fully financed by Group Diakhate for farmers who are looking to start poultry farming.
The loan from the ABC Fund allowed Groupe Diakhate to purchase essential raw materials for poultry feed production, such as maize, soybean meal, and cottonseed meal. The loan also supported the expansion of Groupe Diakhate’s workforce. Since May 2022, the company has experienced a 5% increase in annual revenue and sold 1,267 tons of poultry feed. As of December 2022, the company has worked with 26 cooperatives representing 250 maize and soybean producers, 65% of whom are women and 72% of whom are youth (ages 15-35). The loan will also help Groupe Diakhate purchase newer and more efficient equipment – including a solar electricity generator to sustainably power their new production activities and provide a more reliable energy source.
Groupe Diakhate will also receive technical assistance through the ABC Fund TA Facility, which will provide support in creating financial and administrative procedures and manuals, implementing staff training, integrating accounting software, as well as developing formal job descriptions, complaint procedures, and recruitment procedures.
Impact Story
Supporting women’s livelihoods in Côte d’Ivoire
More than 54,000 women in Côte d’Ivoire collect shea kernels, which are an important source of income and contribute to poverty reduction, as well as gender equality within rural areas. However, many shea kernel collectors regularly face price changes and inconsistent demand, leading to financial uncertainty and insecurity. In 2021, the ABC Fund provided a loan to Bio Amandes, a shea butter processor and exporter based in Ferkessédougou, located north of Côte d’Ivoire. Bio Amandes is the country’s only industrial shea butter processor. The company produces certified shea butter by grinding shea kernels and processing the raw butter. All raw materials are locally sourced and provide a vital source of income to approximately 7,300 women in 60 different villages.
In 2021, the ABC Fund delivered two lines of credit to Bio Amandes. The first line of credit was a loan to support the acquisition of a shea butter refining unit, which will help the company increase its revenues and profitability by allowing them to produce higher-value shea butter. The second line of credit was for a working capital facility to purchase raw materials from women’s groups, so they could also benefit from a reliable fixed-price end-market. In 2022, Bio Amandes paid more than $659,540 to women suppliers – a 90% increase compared to the previous season.
In 2022, the ABC Fund’s TA Facility supported the implementation of an Enterprise Resource Planning system, development of a supply strategy and operational plan, establishment of a social and environmental impact monitoring tool, and analysis of the Hazard Analysis Critical Control Point (HACCP) principles and International Standards Organization’s requirements for the new refinery unit. Bio Amande also plans to refurbish their factory to comply with HACCP in 2023 and develop a system to monitor environmental issues.
Impact Story
Strengthening the soya value chain in Ghana
In 2020, the ABC Fund approved a working capital loan to Dragon Farming Ltd, a company that processes raw soya beans to create soya bean meal, full fat soya, soya flour, and soya oil. Dragon Farming Ltd sources soya beans locally from a network of farmer cooperatives and aggregators, which represent thousands of smallholder farmers. The company uses its expertise to develop high-quality, organic products which it sells to local customers including feed millers and poultry farmers. To ensure quality soya products, Dragon Farming Ltd. offers training for smallholder farmers, supplies materials such as seeds, and provides equipment to assist farmers during harvesting season.
The ABC Fund’s loan was the first international funding that Dragon Farming received. The loan will help the company scale its operations and increase its profitability. Dragon Farming has been able to improve its production turn around by aggregating higher volumes of raw materials, as well as increasing its staff from 35 in 2020 to 39 employees in 2022 – including hiring temporary employees during the peak season to help meet high demand from buyers.
In addition to the loan, the ABC Fund TA Facility helped the company improve its production efficiency, clarify job descriptions, and establish formal contracts, as well as provide health and safety training. These changes have been transformative – job satisfaction quickly improved, leading to a more stable workforce. Improvements to the supply chain monitoring were made to strengthen the value chain, such as training the supply chain manager in detecting and reporting child labor. Dragon Farming currently operates in Ghana and hopes to expand internationally.
Impact Story
Anatrans Cashew Business
Anatrans is a cashew processor based in Burkina Faso. The company purchases raw cashew nuts from a network of farmer groups and cooperatives before sorting, drying, shelling, packaging, and selling the processed products to export markets. The company’s factory employs over 1,500 people, of whom 94% are women. The ABC Fund loan to Anatrans is helping the cashew business facilitate market access for six farmer groups with over 1,200 members. The loan also enables the farmers to receive premiums under the Organic and Fair trade certifications. With this financing, Anatrans is able to generate employment opportunities for up to 1,500 people, as well as funding community projects to benefit the lives of over 7,000 residents in the region.
Sustainable Agriculture
Small Business
Gender Equity
