Joint Effort by BII, FMO, and UK Government to Boost Finance for Agribusinesses and Smallholder Farmers

Joint Effort by BII, FMO, and UK Government to Boost Finance for Agribusinesses and Smallholder Farmers

(IN BRIEF) BII, FMO, and the UK Government’s Foreign Commonwealth & Development Office have partnered to expand the CASA technical assistance facility, aiming to address the significant financing gap faced by agribusinesses in developing countries, particularly in sub-Saharan Africa. With a combined investment of US$6 million, the initiative will help agribusinesses access the necessary capital to support smallholder farmers, improve their income, and enhance climate resilience. The expanded facility, CASA Plus, will focus on enhancing current investments, identifying new opportunities, and overcoming barriers to green and inclusive business models.

(PRESS RELEASE) THE HAGUE, 4-Sep-2024 — /EuropaWire/ — A strategic collaboration between British International Investment (BII), the Dutch development bank FMO, and the UK Government’s Foreign Commonwealth & Development Office (FCDO) is set to expand the Commercial Agriculture for Smallholders and Agribusiness (CASA) technical assistance facility. This initiative aims to bridge the significant financing gap faced by agribusinesses in developing countries, particularly in sub-Saharan Africa, where the need for finance far exceeds available resources.

With a shared investment of US$6 million from BII and FMO, matched by additional support from the UK Government, CASA Plus will extend its reach and impact over the next two years, with plans to continue for at least another five years. The facility is designed to help agribusinesses access the necessary capital to invest in their operations, thereby enabling them to support smallholder farmers more effectively. By doing so, the initiative seeks to create a more sustainable and inclusive global agricultural system that benefits both people and the planet.

CASA Plus will focus on three key areas: enhancing the performance of existing agribusiness investments, identifying and supporting new high-impact opportunities, and collaborating with market actors to overcome barriers to green and inclusive business models in low-income countries. The initiative builds on the success of its first phase, which has already supported 40 agribusinesses, reaching approximately 116,000 smallholder farmers and improving their income and climate resilience.

This collaboration highlights the critical role of development finance institutions and governments in addressing the challenges faced by agribusinesses in accessing finance. By providing targeted support and fostering innovation, CASA Plus aims to unlock the full potential of agribusinesses to drive economic growth and improve livelihoods in developing regions.

[1] CASA, ISF Advisors (2022). The state of the agri-SME sector – Bridging the finance gap.

[2] CASA TAF partners with leading impact investors with agriculture portfolios in low and lower middle income countries across Africa and Asia, including BII, FMO, Norfund, Common Fund for Commodities (CFC), DOB Equity, C4D Partners, Acumen and the Acumen Resilient Agriculture Fund (ARAF).

Media Contacts:

Monica Beek
Media Spokesperson
T: +31 6 4663 7868
M.Beek@fmo.nl

Paul Helsloot
T: +31 6 1847 9655
P.Helsloot@fmo.nl

SOURCE: FMO