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Advans Côte d'Ivoire Secures $2.4M from IDH Farmfit to Support Cocoa Farmers

Advans Côte d'Ivoire Secures $2.4M from IDH Farmfit to Support Cocoa Farmers

By Press Release 05 November 2024
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Mariam Djibo, Advans Côte d’Ivoire CEO

IDH Farmfit Fund, a smallholder farmer centric public-private impact fund, provided a subordinated loan of EUR 2.3 million (~USD 2.47 million) to Advans Côte d'Ivoire, a microfinance institution. Advans Côte d'Ivoire is part of the Advans Group, which provides financial services to small businesses and individuals in developing countries. The financing will contribute to Advans’ target of impacting up to 500,000 smallholders in Côte d'Ivoire.

Advans Côte d'Ivoire focuses on supporting the agricultural sector, particularly cocoa, by offering accessible financial solutions, such as loans and savings accounts, tailored to the needs of smallholder farmers and cooperatives. Unlike other microfinance institutes, Advans' model of direct and indirect smallholder financing through cooperatives enables it to reach deep into rural cocoa communities. Their services help smallholder farmers invest in better agricultural practices, equipment, inputs and household needs, such as school loans, thereby promoting the growth and sustainability of smallholder agriculture in the country.

“To finance our agricultural sector with meaningful impact, foster diversification, and build resilience in the face of climate change, we need the support of partners willing to share both the risk of product innovation and the cost of expanding reach. We are grateful that the IDH Farmfit Fund has agreed to take on this role. As a pioneering financial institution in agricultural financing, we are committed to continuing our collaboration with the agricultural ecosystem, building sustainable value chains, and contributing to the improved quality of life for smallholder farmers”, says Mariam Djibo, CEO of Advans Côte d’Ivoire.

The loan from IDH Farmfit Fund will be used to finance several crops, with cocoa as the central focus. As the financing will be allocated to multiple value chains, it will allow cocoa farmers to diversify their sources of income. Further, IDH Farmfit Fund’s financing will unlock financing in alternative crop supply chains; perceived as riskier by financial institutions.  In addition, the subordinated loan leverages Advans’ funding capability, leading to increased finance for the overall portfolio, including the smallholder farmer’s portion.

Alongside two other international brands, Unilever and Jacobs DE, Mondelēz International, via its Cocoa Life program, is a co-funder of the IDH Farmfit Fund. This co-financing approach enables the IDH Farmfit Fund to take high risk positions in smallholder financial transactions, reducing the cost and risk of investing in smallholders.

“As part of our more sustainable sourcing program Cocoa Life, we believe in the importance of collaboration and innovation to better support cocoa farming communities in their development and strengthen farmer livelihoods. That’s why we invested in the IDH Farmfit Fund to support an innovative public-private financing model that aims to help drive more sustainable livelihoods for smallholder farmers. We support the Farmfit Fund’s new investment in Advans as we believe it can help provide important financial support to farmer cooperatives and their families in Côte d’Ivoire”, added Cedric van Cutsem, Senior Director Cocoa Life at Mondelēz International.

Today, there are at least 270 million smallholder farmers in Africa, Asia and Latin America producing over 70-80% of the world’s food supply. Smallholder farmers often have little to no access to affordable long-term finance that allows them to invest in their farms, increase productivity, and align with the best agricultural practices.

The IDH Farmfit Fund’s innovative financing model makes investments in smallholder farmers attractive, it de-risks investments in smallholder farming and helps drive sustainable impact by lowering risks and costs for both farmers and investors.

“We are delighted to support Advans Côte d’Ivoire in its strategy of outreach to smallholder farmers in Côte d’Ivoire. Due to its successful track-record and ambitious strategy in the agricultural sector, Advans Côte d’Ivoire is the best-placed financial institution in Côte d’Ivoire to provide financing at scale for smallholders. IDH Farmfit Fund’s investment will contribute to unlocking affordable financing and increasing income diversification to smallholders and agricultural SMEs in West Africa”, said Loic Badohoun, Investment Manager, IDH Farmfit Fund B.V.

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Advans Côte d'Ivoire

Advans Côte d'Ivoire

Advans Côte d'Ivoire is a microfinance institution which provides responsible access to affordable and appropriate credit and savings products and other related financial services to small businesses and low-income populations.

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