The World Food Programme (WFP) has signed an agreement with the Equity Group that will allow farmers in Kenya have easy access to financing.
According to the terms of the agreement, WFP country offices in the country will also link value chain actors in food and agriculture to financial literacy training and concessional financing access through Equity Bank subsidiaries.
The agreement which was signed by Dr. James Mwangi, the MD and CEO of Equity Group Holdings and WFP Executive Director, Cindy McCain, on the sidelines of the WFP Executive Board Session in Rome, is a first example of linking WFP’s deep field presence and engagement with value chain actors and financial service providers, and represents a new model of private sector engagement for development impact.
“The approach aims to support marginalized communities where traditional financing is scarce,” Mwangi said while announcing the agreement.
“Together, WFP and Equity, through the Equity Group Foundation, will provide training of value chain actors to help them to access financing, as well as providing technical assistance to ready agri-processors and agri-preneurs for impact investments offered through Equity Bank.
“The agreement is a scaling of a development collaboration between WFP and Equity BCDC in the Democratic Republic of the Congo (DRC) for the project Promotion of Sustainable Food Security.
“This ambitious project, which has been operational in the DRC since 2022, aims to stimulate the development of a sustainable agro-industrial sector that contributes to economic diversification, food and nutritional security, employment, and livelihood improvements,” he stated.
Also speaking, McCain said the Equity Group developed the “Africa Recovery and Resilience Plan which is committed to growing our support of access to finance for farmers, who are also dealing with the scourge of climate change, to 30% of our loan book regionally by 2030.”
“Smallholder farmers are crucial to food production in most developing countries, providing over 70% of food calories in Asia and sub-Saharan Africa.
“Developing local food value chains – and supporting the ecosystem of agriculture from production to purchase – is essential for enhancing farmers’ income and livelihoods and ultimately contributing to food security not just in Africa, but globally.
“This is a powerful example of how innovative partnerships can address the root causes of hunger. By empowering farmers with the tools and resources they need to thrive, we can create a ripple effect of prosperity that strengthens long-term food security for the whole community.”