Reaching smallholder farmers through the Business Support Facility

More than half of Sub-Saharan Africa’s population works in agriculture, yet Africa does not produce enough food to feed the continent. Norfund’s investments in the agribusiness value chain drive productivity, create jobs, link smallholder farmers to markets and increase production.

Through the Business Support Facility, we are working to increase local supply for our investees by finding avenues for increased local sourcing. We are working with established smallholder farmers that are already linked to Norfund’s portfolio companies or portfolio companies to our fund managers, as well as growing and building new outgrower programs. The key aim when supporting smallholder farmers is to increase productivity, quality, and income of these farmers. During 2022 a couple of new Business Support projects were started with the aim of reaching these smallholder farmers. See three examples below.

Phatisa Food Fund 2 – Technical Assistance Facility

Norfund together with our sister organizations BII, BiO and FinDev Canada has supported Phatisa Food Fund 2 with technical assistance funding to strengthen development effects of their investments, with a strong focus on smallholder farmers and entrepreneurs, while also driving business value.

AgDevCo – Technical Assistance Facility

Norfund together with BII have supported AgDevCo with funding to deliver expertise to support AgDevCo investees to grow in a financially, environmentally, and socially sustainable way. Special focus on inclusive programs targeting smallholders in the supply chain. 

Lilongwe Dairy – secure milk supply by establishing new farmers

Norfund is supporting Lilongwe Dairy in establishing 200 new farmers as milk producers. Female farmers that are heading vulnerable households are prioritized and new farmers receive support for training, capacity building, cow shed and heifer.