SME IMPACT FUND

The philosophy of SME Impact Fund is to address the financial challenges that smallholder farmers face and unlock their agricultural potential by financing their buyers (SMEs, i.e. processors). Rather than financing smallholder farmers directly, which would be commercially unsustainable due to high transaction costs and high-risk investments. SME Impact Fund uses the relationship between SMEs and smallholder farmers to channel funding needs. This also fits in the broader value chain approach we promote... Our approach links small rural entrepreneurs to regional, national and export markets. The SME and smallholder farmer enter into a mutual agreement: the farmer commits to provide a specific commodity in quantities and at quality standards, and the company commits to provide a degree of production support (e.g. input and technical advice, and to purchase the commodity). This form of contract farming is mutually beneficial and can be either formal (including a written contract) or..

Primary location: Arusha Tanzania