Which businesses can qualify for a loan?

Borrower Types

LAFCo lends to certain approved agricultural SMEs across the value chain that work directly with smallholder farmers, and which have constrained access to working capital. Given the cross-value chain focus, LAFCo borrowers could be:

• Agro-dealers or input providers
• Processors
• Traders, distributors, exporters
• Logistics providers (e.g., warehouses)
• Other agricultural businesses

Value Chains

LAFCo’s primary purpose is to provide working capital financing for borrowers working in food crop value chains, specifically those involved in domestic and intra-Africa trade. LAFCo considers a wide range of food crop value chains, including but not limited to:

• Cereals, pulses, nuts, and root crops
• Fruit and vegetable horticultural crops, whether fresh or for processing
• Oilseeds for edible oil or animal feed
• Animal feed
• Dairy
• Poultry and other livestock

Smallholder Farmer Involvement

All qualifying SME borrowers must be delivering a clear benefit to smallholder farmers, either by sourcing crops or animals from farmers or by selling productivity-enhancing inputs to them. LAFCo defines smallholder farmers as those cultivating less than 10 hectares.

Borrower Size

LAFCo is intended primarily to serve SMEs meeting the IFC definition, namely, having at least two of the three following characteristics:

Gross assets of less than US$ 15 million; Annual turnover of less than US$ 15 million; or Fewer than 300 employees. However, LAFCo is permitted to lend to larger corporate entities provided the social and environmental considerations described online are met.