Agriculture is a vital sector in the economies of many developing countries and is essential to promoting a healthy population as well as supporting the livelihoods of smallholder farmers.
DFC is committed to investing in projects that help smallholder farmers access training and tools to increase yields, strengthen value chains to reduce food waste, build critical food processing infrastructure, and enable countries to expand food exports.
The agency seeks to invest $1 billion in food security and agriculture projects over five years to accelerate progress toward ending hunger and malnutrition and building more sustainable, equitable, and resilient food systems.
Because many of the world’s subsistence farmers are women, DFC’s support for agriculture projects advances women’s economic empowerment and the agency’s 2X Women’s Initiative.
A DFC loan is helping Kentegra, a Kenyan and U.S. biotechnology company, build a new pyrethrum processing facility in Nakuru County, Kenya, to meet growing demand.
DFC financing is helping One Acre Fund support smallholder farmers in Burundi, Kenya, Rwanda, and Tanzania, many of whom live in difficult-to-reach remote areas. One Acre employs more than 8,000 local workers to provide seed and fertilizer on credit, together with training on best practices for growing and storing food.
A DFC equity investment in AfricInvest Fund IV LLC supported the fund’s investment in CMGP-CAS Group, a major regional manufacturer and distributor of irrigation equipment, crop protection, fertilizers, seeds, and other critical farm inputs. Equipment such as drip and pivot irrigation, micro-sprinklers, and greenhouses supplied by CMGP have equipped 170,000 hectares of land in Morocco. The business operates three manufacturing sites and 11 distribution centers around the country and is working to expand its network across Africa, while developing new solutions to combat water scarcity and ensure food security.
DFC, in collaboration with the USAID mission in Ukraine, is providing a $15 million loan portfolio guaranty to Bank Lviv—a major commercial bank in Western Ukraine—to deliver immediate support to Ukrainian small businesses, including women-owned businesses and smallholder farmers. DFC guaranteed loans will help small businesses remain open, providing employment, maintaining trade linkages, and supporting the economy.
DFC financing supported the expansion and modernization of the Poti New Sea Port, which began operations in early 2022. DFC's support helped develop a new marine terminal to accommodate larger vessels up to 253 meters in length carrying up to 50,000 tons of cargo. The financing is also supporting additional storage facilities and transportation infrastructure including a modern hydraulic system needed to support expanded operations.
A DFC loan is helping the InsuResilience Investment Fund work with financial institutions to develop and expand insurance to protect smallholder farmers and other climate-vulnerable populations against extreme weather and other natural disasters.
A DFC investment in Chiratae Ventures International Fund IV LLC is supporting investments in multiple technology companies, including Agrostar, which offers an agri-tech platform to help millions of farmers access information and expert advice and purchase the seeds, fertilizers, and other inputs to help them increase yields and reach larger markets.
Photo Credit: Yemba Chilambwe for USAID SUN TA
DFC political risk insurance is supporting DAI Global in a USAID-funded initiative with the Government of Zambia to reduce stunting by expanding access to nutrition, as well as water, sanitation, and hygiene (WASH). The program trains farmers to establish community gardens and improve production of vegetables and legumes, while forming nutrition-focused support groups for mothers of young children. It has also trained hundreds of government staff and volunteers to roll out WASH activities, including the construction of latrines and handwashing stations in 111 villages.
A DFC technical assistance grant is helping Ifria Cold Chain Development Co. conduct early-stage work on the development of two cold chain anchor warehouses in Agadir, Morocco and Dakar, Senegal.
A DFC loan guarantee will help Orabank Niger, the country’s eighth-largest bank, increase lending to SMEs in the agriculture, livestock, and food value chain sectors, which currently account for just one percent of the bank’s portfolio. The guarantee will also help the bank address demand for Islamic finance and deploy more digital financial services for remote farmers.
Financing and technical assistance are supporting the expansion of Milk Mantra, a startup that procures, packages, sells and delivers dairy products in India. Milk Mantra is committed to ethical procurement with a focus on fair, transparent and timely payments to farmers, along with a range of extension services to farmers.
A DFC loan guaranty facility is helping Root Capital sustain livelihoods of more than one million farmers—more than half of them women—in 21 countries in Africa and Latin America.
A loan to WayCool Foods is helping this four-year old company bring more produce to market in an efficient manner that avoids spoilage. WayCool is introducing technology, strict quality controls and efficient transportation to ensure that more produce reaches consumers. Working with tens of thousands of farmers across 15 states, WayCool weighs food before it leaves the farm, conducts quality checks in warehouses, and sends electronic payments to farmers, while transporting food to on markets in temperature controlled vehicles. Farmers who work with WayCool report a 30 percent increase in income and the food they grow is sold in markets around the country and to multiple international restaurant and hotel chains. DFC’s $5.5 million loan will support the continued expansion of this “farm-to-fork” value chain.
A $10 million loan helped Sante GMT modernize and increase dairy production by establishing a network of milk collection centers around the country, update a processing facility and expand beyond milk production into a line of juices, yogurts, cheeses and dessert foods. In addition to enhancing the country’s food supply, the project provides income for thousands of rural family farmers who previously had no way of selling milk produced on their land.
Political risk insurance supported the rebuilding of the mill, which reopened in 2011 with increased production capacity, more modern equipment, and an overall design that will better withstand any future seismic activity. The restoration of the mill created local jobs and increased the food supply throughout the country.
A loan guaranty enabled Edward Munaaba to borrow $10,500 from a local bank in the Jinja district to install solar panels in his nine-acre community farm, introducing electricity to the village for the first time ever. The addition of electricity has supported cold storage, submersible solar pumps for irrigation, and training for farmers in the community.
Political risk insurance is supporting SilverStreet Private Equity’s investment in two vineyards that grow table grapes in Aussenkehr, a fertile region of the country that borders on South Africa. Water from the Orange River is used to irrigate the vineyards and the optimal conditions mean the grapes mature rapidly.
Financing enabled Australis Aquaculture to create an open fish farm in Van Phong Bay, Vietnam, where it is raising barramundi, also known as Asian sea bass, a local fish that has a high nutritional value and is enjoying growing popularity around the world. In addition to introducing open aquaculture to Vietnam, enabling fish to swim freely in offshore net pens, the company has adopted fishing techniques that reduce food waste and methane emissions. Australis also worked with a nearby veterinary research institute to manufacture fish vaccines locally.
Political risk insurance supported Rwanda Trading Company (RTC) in a project to modernize the country’s coffee industry. RTC, a unit of Westrock Coffee Holdings LLC of Little Rock Arkansas, rehabilitated a coffee mill in Kigali as well as five coffee cherry washing stations around the country. It also established technical assistance and training programs to help introduce modern farming practices including the use of compost and fertilizer.
A U.S. Government risk-sharing guaranty in partnership with Ecobank Burkina—one of Africa’s largest banks—covered half of the collateral so that farmers and other entrepreneurs could obtain loans to grow their businesses, increase their earnings, and invest in the long-term stability of their families.
Financing supported the construction of a new grain loading terminal and an oilseed crushing facility. The project has significantly improved Moldova’s storage logistics and processing infrastructure while also increasing the quality of local food supplies, creating jobs and enabling Moldova’s agriculture sector to reach growing export markets.
A partial credit guaranty is helping local businesses, such as Meliomar, advance sustainable fishing practices. Meliomar is a seafood processor that sources sustainable fish from environmentally friendly, small-scale fisheries. Meliomar, founded in 2013, is working to educate sellers and consumers about sustainable fishing practices, and to support local livelihoods by promoting fair wages for coastal fishing communities.
A $15 million equity investment will help Freshtohome Foods Ltd. expand its Bangalore-based e-commerce business that sells fresh fish, meat and vegetables in major metropolitan cities in India. Freshtohome is a five-year-old company built with proprietary technology to connect more than 1,500 fishermen and farmers to its network that delivers affordable fish and meat products to consumers, while also helping food producers earn higher prices than they typically receive at auction.
Partnering with USAID, DFC structured a 50 percent loan portfolio credit guarantee with Botswana’s Absa Bank Botswana, which enabled Absa to lend to Arona Natural Foods, a small local bread producer with fewer than 10 employees.