Improving agricultural productivity in Zambia
Due to a lack of collateral, it is often very difficult for farmers in Africa to obtain the loans they need to buy essential materials such as seed, fertilisers and pesticides. When farmers lack these these resources, yields of smaller farms can be significantly reduced.
To address this issue and boost smaller farms’ yields, we have developed various financing solutions, including Finance Against Warehouse Receipts, which uses the crop or commodity (such as soya, corn or wheat) as collateral, rather than the usual fixed assets.
Through our Finance Against Warehouse Receipts structure we were able to provide fertiliser producer Nyiombo Investments Ltd with a USD150 million loan, which has since enabled the company to meet more than 60% of Zambia’s fertiliser demand. The implementation of these quality fertilisers has boosted average yields to over a ton per hectare – with many small holder farmers graduating to commercial farming status as a result of their improved productivity.
This programme has been so effective it has transformed the country’s maize production from a deficit in 2006, to producing bumper harvests and trade through the exportation of surplus produce.
We manage the environmental, social & governance risks that come with our financing decisions.
Here for good
It’s about sticking by our clients and customers, and always trying to do the right thing.
Investing in farmers
We helped Zambia secure the USD140mn loan it needed to improve the country’s food supply.