The Agricultural Guarantee Fund Scheme, a partnership between Standard Bank, the Alliance for a Green Revolution in Africa (AGRA), OPEC Fund for International Development (OFID), Kilimo Trust, Millennium Challenge Account (MCA) and Millennium Development Authority, seeks to offering the right kind of finance to its farmers and agricultural businesses.
This fund for Africa’s smallholder farmers, initiated in March 2009, is operating not only in Uganda but also in Ghana, Mozambique and Tanzania. The loans have been provided by Standard Bank with support from AGRA, The Kilimo Trust and OFID. These partners have provided Standard Bank with a 1st loss guarantee/50% risk sharing agreement.
Jacques Taylor, director of agricultural banking, Standard Bank Africa says, “Ultimately the Agriculture Guarantee Fund Scheme aims to reach around 750,000 small farmers and small/medium sized enterprises (SMEs) over a three year period with businesses such as Pe Yero Millers benefitting across the African continent and ultimately contributing to Africa’s green revolution.”