Calvert Impact Capital has announced plans to extend loans amounting to $5million to support small holder farmers in the six East African States.
The loan will be channeled through One Acre Fund, a non-profit social enterprise that supplies financing and training to support smallholders in East Africa.
Under the arrangement, Calvert Impact Capital will be lending to One Acre Fund to purchase agricultural and clean energy products, which will be provided to farmers on credit, over the next three years.
The Agriculture sector in the East African region faces many challenges such as inadequate access to quality cheap loans from Financial Institution. This has affected the sector because it keeps farmers from adopting modern way of production.
“Once farmers have access to cheap loans, they can apply new technologies in the production process which can enhance production at farm level,” said Jenya Shandina, Senior Manager at One Acre Fund.
“Smallholder farmers need improved access to high-quality inputs, financing, and agricultural training to achieve food security and prosperity in their homes. Our partnership with Calvert Impact Capital will enable us to deliver services to more farmers, helping create futures of big harvests and healthy families,” he added.
Commenting on the partnership, Songbae Lee, Director of Investments at Calvert Impact Capital said the partnership will provide a great opportunity to increase their exposure to the sustainable agriculture sector and strengthen their relationship with One Acre Fund, an organization with deep sector and regional expertise.
“We are excited to provide capital to enable them to expand the products, they can offer to communities and increase their impact on the ground,” he said.