Equity Group and World Food Programme Seal Agreement to Empower Small Farmers

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Equity Group and the World Food Programme (WFP) have initiated a pioneering framework agreement that allows WFP country offices to link value chain participants in the food and agriculture sectors with financial literacy education and concessional financing through Equity Bank subsidiaries.

This agreement, signed by Dr. James Mwangi, MD and CEO of Equity Group Holdings, and Cindy McCain, Executive Director of the World Food Programme, was finalized during the WFP Executive Board Session in Rome.

It represents a new model of private sector engagement for development impact by combining WFP’s extensive field presence and involvement with value chain participants and financial service providers.

The initiative is designed to assist marginalized communities where traditional financing options are scarce. Through the Equity Group Foundation, WFP and Equity will provide value chain actors with training to access financing and offer technical assistance to prepare agri-processors and agri-preneurs for impact investments facilitated by Equity Bank.

The agreement builds upon a previous collaboration between WFP and Equity BCDC in the Democratic Republic of the Congo (DRC) under the “Promotion of Sustainable Food Security” project.

Operational since 2022, this project aims to develop a sustainable agro-industrial sector that contributes to economic diversification, food and nutritional security, employment, and livelihood improvements.

In the DRC, Equity BCDC has facilitated USD $10 million in loans to local value chain businesses, including smallholder farmers, cooperatives, and food processors, who receive technical assistance and concessional financing through Equity.

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During the WFP Executive Board’s Annual Session, Dr. James Mwangi, invited by WFP’s Executive Director and His Excellency, Ambassador Youssef Balla, Permanent Representative of the Kingdom of Morocco and current President of WFP’s Executive Board, emphasized the private sector’s crucial role in transitioning food crises to resilient food systems globally. His address marked the first time a CEO from the Global South was invited to speak to the WFP Executive Board.

“At Equity we have always understood that small-scale farmers underpin the food supply in Africa and around the world. The majority of the 600 million farms in the world, 70%, are small holder, which means farms of less than 1 hectare. Often this is only subsistence farming for family eating. 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 Dr. Mwangi.

“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% of our loan book regionally by 2030.” Dr. Mwangi added.

Cindy McCain, WFP’s Executive Director, commented on the importance of collaborating with the private sector to support global food security and achieve zero hunger.

“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.” she said.

The two organizations also agreed to educate farmers on managing crops for climate resilience and incorporating regenerative agriculture practices. They plan to offer financial management education to support the cyclical and often uncertain nature of agricultural production.

Additionally, small-scale farmers will receive access to affordable, informative data and solutions to address agricultural challenges. The partnership will also focus on providing infrastructure support to mitigate food waste, crop spoilage, and facilitate market access.

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Dr. Mwangi further highlighted the positive impact of Equity Group Foundation’s food and agriculture initiatives, benefiting 3.8 million farmers, including 310,000 small and medium-sized farmers. He stressed the importance of diversifying food sources for nutrition and job creation, including the involvement of vulnerable populations such as refugees in scaling agricultural production.

Equity Bank’s affordable loans to food value chain businesses in remote areas are made possible through partnerships with impact investors like IFAD and 16 development finance institutions.

Technology partners such as Hewlett Packard, Microsoft, and the Bill and Melinda Gates Foundation will support technology solutions enabling small-scale farmers to grow within the formalized food and agribusiness market.

In May, Equity, along with founding partners Microsoft, Heifer International, Unconnected.org, and Syngenta Foundation, sponsored by US Vice President Kamala Harris and convened by Mastercard Corporation and the African Development Bank (AfDB), formed the MADE Alliance (Mobilizing Access to the Digital Economy). This alliance aims to use the Community Pass technology platform to address the needs of over 100 million small-scale farmers.

Additionally, Equity has collaborated with the Mastercard Foundation for five years under the ‘Young Africa Works Program’ to support agricultural SMEs in becoming formalized businesses through entrepreneurial training and financing.