The partnership will work to improve agri-business management skills, sustainable agro-ecological and processing practices and food loss-reduction techniques
The United Nations Food and Agriculture Organization (FAO) has collaborated with the Dutch entrepreneurial development bank FMO for the improvement of agriculture financing in developing countries.
The formal partnership has been launched to boost investments for small and medium enterprises (SMEs) and small-scale producers operating within the agribusiness sector in developing countries.
As part of the Memorandum of Understanding (MoU), the FAO and FMO will work with members of farmers’ organisations, the staff of SMEs and rural microfinance institutions to enhance agri-business management skills, sustainable agro-ecological and processing practices and food loss-reduction techniques.
The institutions will improve access to finance for all actors along the agricultural value chain
The partnership will initially launch the pilot project in Kenya. Both institutions will focus on improving access to finance for all actors along the agricultural value chain, allowing small-scale producers, cooperatives and SMEs in the agribusiness sector to expand and operate in a more environmentally and socially responsible manner.
FAO programme support and technical cooperation assistant-director-general Roberto Ridolfi said: “The private sector is key for guaranteeing economic development, food security and ultimately, prosperity of rural areas.
“We look forward to working with FMO to increase investments in favour of rural development, also in line with FAO’s AgrInvest initiative, aimed at promoting and facilitating private sector contributions in sustainable agriculture and agribusiness.”
The collaboration is said to combine FMO’s private sector expertise with FAO’s technical knowledge.
FMO agribusiness, food and water department director Pieternel Boogaard said: “FMO views the partnership with FAO as critical in boosting sustainable agribusiness supply chains in developing markets with a focus on climate adaptation and smallholder impact.”
FMO, the Dutch public-private development bank, invests in businesses, projects and financial institutions in under-served and emerging markets, extending support for sustainable private sector growth. Established in 1970, the FMO currently conducts operations in 85 countries.