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.