One Acre Fund has raised $1.4 million from Impact Bridge Asset Management, a Spanish fund manager specializing in social impact investing. The funds come from IB Impact Direct Debt, a €50 million fund aimed at supporting social and environmental initiatives in developing countries.
Based in Kenya, One Acre Fund helps smallholder farmers by providing hybrid seeds, quality fertilizers, and training on best farming practices. These efforts aim to reduce poverty, improve nutrition, and increase farmers' incomes.
One Acre Fund also promotes climate-smart farming and has launched a tree-planting initiative to plant one billion trees in 15 years. They offer a tree package to supplement seasonal harvests, providing stability and environmental benefits. Farmers can use mobile phones for loan repayments, product sign-ups, training, and market information via a USSD text messaging service.
The IB Impact Direct Debt fund has raised €15 million from international investors and focuses on sub-Saharan Africa and Latin America. It aims to improve basic services, address climate change, empower women, create jobs, and promote financial inclusion. The fund has also invested €3 million in a blue bond by the International Bank of Ecuador.
Impact Bridge’s CEO, Arturo Benito, praised One Acre Fund for providing in-kind loans of seeds, fertilizers, and tools, along with micro crop insurance. After harvest, One Acre Fund helps farmers sell their products and collects loan repayments plus interest.
Since 2006, One Acre Fund has trained farmers in sustainable practices, provided hybrid seeds, and offered credit and crop insurance to protect against climate change. With 8,290 staff globally, they served 4.8 million farmers in 2023 and aim to reach 10 million by 2030.
In 2023, One Acre Fund received $2.5 million from the Conrad N. Hilton Humanitarian Prize. They also launched One Acre Fund Re, with support from the International Finance Corporation, U.S. International Development Finance Corporation, and African Risk Capacity, to provide insurance for farmers, aiming to cover at least four million by 2030.
In May 2024, One Acre Fund received $10 million from Proparco to boost food security in Africa, aiding over one million farmers in nine countries. In July 2024, they partnered with Global Parametrics to offer financial protection against drought for farmers in Zambia and Malawi, using a water-balance index to determine payouts.
Play audio
No comments