Climate Change Data

Agri-Business Capital (ABC) Fund

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate-smart agriculture
  • Sustainable production
  • Support for women and youth
  • Food security
  • Rural poverty reduction

Environmental Achievements

  • Supported businesses practicing climate-smart agriculture and sustainable production
  • Improved agricultural practices leading to reduced use of chemical fertilizers (39%) and increased use of natural fertilizers (30%) among Anatrans farmers.

Social Achievements

  • Financed 33 companies across 12 countries, benefiting over 724,000 smallholder farmers (61% women, 37% youth)
  • Created 749 new permanent rural jobs and 312 temporary jobs in 2023
  • Supported smallholder farmers through sustainability certifications generating EUR 1.86M in premiums in 2023
  • Improved livelihoods of farmers through increased production levels and earnings (Anatrans impact study)
  • Improved quality of life for Anatrans farmers (88% reporting improvement)
  • Enhanced farmers' agricultural practices (76% reporting improvement) through Anatrans
  • Provided prepayments to farmers, improving their living standards (Ecakoog)
  • Supported gender equality with 52% of Premier Credit's rural borrowers and 66% of its employees being women.

Governance Achievements

  • Conducted ESG risk assessments of potential investees, rejecting high-risk projects
  • Provided technical assistance on governance and financial management to investees
  • Supported the establishment of an independent board and a comprehensive succession plan for Wish Kenya
  • Implemented an Integrated ERP System for ROCFED to improve financial capacities and governance.

Climate Goals & Targets

Environmental Challenges

  • Geopolitical, economic, and climatic disruptions affecting agricultural value chains
  • Limited access to capital for small-to-medium sized enterprises (SMEs) in the agriculture sector
  • Climate shocks affecting crop yields (Anatrans impact study)
  • Lack of access to financing and modern inputs hindering cocoa production in Ivory Coast
  • Lengthy credit request processes and unfavorable terms for rural SMEs in Uganda
  • Low dairy milk yields and high price volatility in Kenya
  • Financing gap preventing smallholder farmers in Benin from improving climate resilience.
Mitigation Strategies
  • Provided flexible financing terms and technical assistance to empower SMEs
  • Offered tailored financial products to farmer organizations and agri-SMEs, directly and indirectly via financial institutions
  • Provided pre-investment technical assistance to help companies meet investment criteria
  • Conducted in-depth impact studies to measure changes in farmers' lives
  • Provided working capital facilities to support investees' growth (Ecakoog, JKCC, Groupe Diakhate, Wish Kenya, ROCFED, PEBCo Bethesda)
  • Provided technical assistance on various aspects like governance, financial management, sales, marketing, and risk management
  • Supported value chain strengthening through technical assistance to suppliers of investees
  • Supported the development of new marketing strategies and customer value propositions (EBO)
  • Improved credit application and risk management processes (Unacrep)
  • Implemented Enterprise Resource Planning (ERP) and Outgrower Management systems (JKCC)
  • Provided technical assistance to improve agricultural practices, animal husbandry skills, enterprise development, and financial literacy (Premier Credit Kenya).

Supply Chain Management

Responsible Procurement
  • Fairtrade certification
  • Rainforest Alliance certification
  • Bio certification
  • GLOBAL GAP certification
  • GRASP certification

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
  • Pests
  • Diseases
Opportunities
  • Macadamia as a drought-resilient crop

UN Sustainable Development Goals

  • SDG 1: No Poverty
  • SDG 2: Zero Hunger
  • SDG 8: Decent Work and Economic Growth
  • SDG 13: Climate Action

The ABC Fund's activities contribute to these goals by improving livelihoods, enhancing food security, creating jobs, and promoting sustainable agriculture practices.