Kenyan-based social enterprise One Acre Fund has received a $1.4 million investment to help smallholder farmers in East Africa. The funding is from Impact Bridge Asset Management, a Spanish fund manager focused on social impact investing, through its IB Impact Direct Debt fund, which totals $54.4 million (€50 million).
This support will enhance One Acre Fund’s ability to provide essential services to around one million farmers, including seeds, fertilizers, and training. The organization’s efforts aim to increase farmers’ incomes and food security. This new investment will enable further expansion and impact in the region.
One Acre Fund’s impact in the region has been growing since its inception. Recall the organisation announced the expansion of its services to Malawi and Uganda in 2016. This expansion began as pilot programs in 2013 and 2014, respectively, and has since flourished, now serving 400,000 smallholder farmers across East and Southern Africa.
The organisation provides a complete package of agricultural inputs and services, including high-quality seeds, fertilizers, training, and post-harvest storage solutions. These are offered on credit with a flexible repayment system, helping farmers increase their incomes and food security.
“The majority of the world’s poor are hard-working smallholder farmers who can reach their full potential with access to finance, training, and services,” said Andrew Youn, One Acre Fund’s founder and executive director. The organization’s goal is to empower these farmers to increase their incomes and food security, ensuring that no farmer goes hungry.
The new funding from Impact Bridge Asset Management will enable One Acre Fund to expand its reach and services, providing more farmers with the resources they need to thrive. This is especially crucial in East Africa, where smallholder farmers play a vital role in the region’s food security and economic stability. By enhancing the productivity of these farmers, One Acre Fund not only contributes to local food supplies but also promotes economic growth and resilience in rural areas.
The investment from Impact Bridge Asset Management is part of a broader strategy to finance social and environmental impact companies in developing countries. The IB Impact Direct Debt fund targets businesses that drive significant social change, focusing on sectors like agriculture, healthcare, and education. By investing in One Acre Fund, Impact Bridge Asset Management demonstrates its commitment to supporting initiatives that have a direct and positive impact on local communities and economies.
The impact of One Acre Fund’s work is evident in the success stories of farmers who have significantly increased their crop yields and incomes through the organisation’s support. By continuing to provide essential services and resources, One Acre Fund is making a tangible difference in the lives of East African farmers, fostering a more sustainable and prosperous agricultural sector.
This recent investment underscores the importance of supporting agricultural development as a means to achieve broader social and economic goals. As One Acre Fund continues to grow and reach more farmers, the positive ripple effects of their work will be felt across communities, contributing to a more secure and sustainable future for East Africa.
