Smallholder farmers set to gain from Sh4.5bn MasterCard grant

The MasterCard Foundation has launched Sh4.5 billion ($50 million) fund to benefit small-scale farmers in Africa.

Dubbed Rural Prosperity, the fund inform of a grant will be given to financial institutions and agribusiness entities to distribute to farmers.

MasterCard says the finances will help improve the lives of smallholder farmers by enabling startups or expansion of financial services in rural areas in Sub-Saharan Africa.

“Over the last decade, many countries in Sub-Saharan Africa have enjoyed substantial economic growth but much of this growth has not benefitted the rural poor, especially smallholder farmers who depend on subsistence agriculture for their livelihoods,” said Reeta Roy, the chief executive officer of MasterCard Foundation.

Farmers to benefit from the funds must have innovative ideas with potential to grow impact on the lives of rural poor throughout Sub-Saharan Africa.

“This new Fund will stimulate private sector organisations to provide affordable and accessible savings, credit and insurance products. These services are essential to enable African farmers to increase productivity and incomes and, ultimately, grow rural economies,” she added.

Out of the Sh4.5 billion, Sh1.3 billion will be used in supporting the development for ideas for new products and services or processes that increase access to finance for the rural poor ,while Sh3.18 billion will help to scale up the most promising ideas or pilots that have the potential to drive financial inclusion for smallholder farmers.