LAFCo’s primary purpose is to provide working capital financing for borrowers working in food crop value chains
LAFCo serves the day-to-day working capital needs of agricultural businesses and farmer cooperatives, particularly those operating in staple food crop value chains
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:
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:
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.
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.
This list will continue to grow as LAFCo explores opportunities to extend financing in other countries in Sub Saharan Africa. Prospective countries include Burundi, Cameroon, Madagascar, Malawi and Sierra Leone.