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Access to Finance

When small and growing agricultural enterprises can access affordable financing, they have a larger impact on rural communities.

Financing catalyzes enterprise growth, which results in better incomes, services, and other support for farming families. Over more than 20 years, Root Capital has loaned $1.85 billion to agricultural enterprises worldwide, proving that these under-served businesses are bankable—and that access to finance can have a ripple effect in rural communities.

The Challenge

Too many small and growing agricultural enterprises are stuck in the “missing middle”—considered too big for microfinance and too small and risky for commercial banks. Without access to credit, cooperatives and other businesses are incredibly vulnerable to shocks, from COVID-19 to climate disaster.

But businesses with reliable financing—tailored to their unique needs and harvest cycles—are resilient. When that financing is paired with training in critical business skills, the potential for growth and innovation is boundless.

Our Approach

Provide tailored, affordable financing to under-served agricultural enterprises.

Build enterprise capacity to access and manage credit.

Pilot blended financing models to reach early-stage, riskier businesses.

Demonstrate proven models and strengthen the agricultural finance sector.

Our Impact

$1.96B

91%

2.4M

disbursed to under-served agricultural enterprises.

of our 2020 loans filled credit needs unmet by commercial lenders.

farmers and employees reached

Stories of Impact

Rapid Impact Evaluation: Fruiteq

Fruiteq is a private enterprise that sources Fair Trade- and organic-certified mangoes from 830 small-scale farmers in Burkina Faso, Mali and Ivory Coast. This is the first case study Root Capital has conducted in the fresh fruits and vegetables sector. It provides practical lessons on the appropriate loan structure and risks particular to the value chain.

Download Impact Study

CGAP — Scaling Climate Smart Agriculture by Financing Small and Growing Businesses

Over the past decade, we’ve financed hundreds of small and growing businesses employing sustainable approaches such as agroforestry, organic production, and responsible harvesting of natural products. This article details how we're scaling climate-smart practices at the smallholder level, thus maintaining the integrity of valuable landscapes while creating more prosperous and climate-resilient livelihoods for farmers, their families, and communities. View Article