Equity Group and the World Food Programme (WFP) have inked a deal to provide financial literacy training and concessional finance to smallholder farmers.
The partnership will link farmers to the agricultural value chain, providing them with support to increase productivity and improve their livelihoods while contributing to food security.
Through the Equity Group Foundation, WFP and Equity will provide training to value chain actors to help them access finance. In addition, technical assistance will be provided to agro-processors and agripreneurs to prepare them for impact investments provided by Equity Bank.
The initiative aims to support marginalised communities with limited access to traditional finance and to promote the development of a sustainable agro-industrial sector that contributes to economic diversification, food and nutrition security, employment, and improved livelihoods.
“We want to work with partners like WFP to scale outputs and access to finance to facilitate investments in agricultural activities to support farmers to enhance productivity, integrate into value chains, and ultimately improve their livelihoods while contributing to food security, sustainably," said Equity Group CEO James Mwangi.
He added: "Additionally, the 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 percent of our loan book regionally by 2030."
WFP Executive Director, Cindy McCain said the training programme for farmers would help empower communities.
“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," said Ms McCain.
The partnership also includes plans to train farmers in climate-resilient crop management and regenerative agricultural practices, as well as financial management.
Efforts will also be made to provide infrastructure support, reduce food waste, prevent crop spoilage, facilitate market access, and transport goods to markets, ultimately improving farmers' incomes and livelihoods.
Smallholder farmers play a critical role in food production in many developing countries, including Kenya, and are essential to improving global food security.
