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Nigerian Enterprise Gets United Nation’s US$5million Agric Funds -

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News

Nigerian Enterprise Gets United Nation’s US$5million Agric Funds

Nigerian Enterprise Gets United Nation’s US$5million Agric Funds

A Nigerian social impact enterprise, Babban Gona, has attracted a United Nation loan of US$5 million to boost its bold agricultural innovations. 

With this, rural businesses which are vital for transforming food systems will get a much needed boost from an ambitious new financing programme launched today by the United Nation’s International Fund for Agricultural Development (IFAD) as part of its broader efforts to address rising hunger and poverty levels in the world’s poorest countries.

As part of its launch, the PFSP announced its first loan of US$5 million to a Nigerian social impact enterprise, Babban Gona, which has a strong background in successfully moving small-scale farmers from subsistence to a more market-orientated model.

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The loan will help Babban Gona support 377,000 small-scale rice and maize producers in Nigeria with a comprehensive package of training, quality inputs, and marketing services. Babban Gona will also store and sell the harvest on behalf of its farmers when prices are higher.

They aim to create up to 65,000 jobs for women and 66,500 jobs for youth by 2025. By committing these funds, the PSFP aims to stimulate larger contributions from other investors and help Babban Gona meet its target to raise $150 million to reach millions of small producers.

Lack of financing and access to financial services prevents rural SMEs and small-scale farmers from harnessing opportunities offered by a growing demand for more diverse and nutritious food globally.

SMEs involved in food processing, packaging, transport and marketing are essential to small-scale farmers, providing them with services, inputs, and market opportunities, which contribute to increasing their income and employment.

The United Nation’s Private Sector Financing Programme (PSFP) aims to spearhead an increase in much-needed private investment in small and medium-sized enterprises (SMEs), farmers’ organizations and financial intermediaries servicing small-scale farmers, which are too often neglected by investors. It will provide loans, risk management instruments (such as guarantees), and equity investments.

 

TheConscience

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