LAFCo is a Mauritius-based investment company that provides financing through loans to African agricultural businesses working directly with smallholder farmers. The company aims to generate social and economic impact in the African agriculture sector, offering direct support to SMEs and indirect benefits to smallholder farmers through higher and more stable incomes, improved farm productivity, access to reliable markets, and increased food security.
With an initial close of $15 million in committed funds, LAFCo is poised to become a leading capital provider for agricultural businesses across various industries, focusing primarily on enterprises that enhance local and regional food security. By leveraging an innovative blend of public and private capital, the Facility can serve segments of the market that commercial banks or other financial institutions typically underserve. As LAFCo’s portfolio grows, the company will continue raising public and private funds to support its mission.
Target
Traders, Input providers, Processors, Agro-dealers, logistics providers, other Agribusinesses with less than $15m annual turnover or less than 3000 employees
Focus Areas
Food crop value chain
Eligibility
- LAFCo borrowers must also meet the following criteria at the time of application and throughout the term of any LAFCo facility for which they may be approved:
- Have at least two years of operating activities.
- Be able to submit at least two years of audited financial statements.
- Be a legal entity which offers sufficient protection to its creditors.
- Demonstrate the ability to responsibly service working capital loans (i.e., with standard credit assessment and underwriting criteria).
- Comply with the national laws, local regulations, and/or rules and license requirements applicable to their industry.
- Comply with LAFCo’s Exclusions List, which is based on International Finance Corporation’s (IFC) principles, that excludes production or trade in any product or activity deemed illegal under host country laws and regulations or international conventions and agreements.
- Comply with applicable local environmental and social performance requirements, including labor, health, and safety for each industry. Comply with LAFCo’s anti-money laundering and anti-corruption policies.”
