As part of its broader efforts in addressing rising hunger and poverty levels in the poorest countries of the world, the UN’s International Fund for Agricultural Development (IFAD) has today launched the Private Sector Financing Programme (PSFP) to boost private funding for smallholder farmers and agribusinesses.

As part of its launch, the PFSP announced its first loan of $5 million to a Nigerian social impact enterprise, Babban Gona, which has a strong background in successfully moving smallholder farmers from subsistence to a more market-orientated model.

Previously, IFAD only channeled investments to rural areas through grants and sovereign loans to governments. IFAD’s loan to Babban Gona is IFAD’s first loan to a private sector entity. “We can end poverty and hunger! But to achieve this, we urgently need to stimulate more private sector investments to rural areas and unlock the immense entrepreneurial potential of millions of rural SMEs and small producers,” said Gilbert F. Houngbo, President of IFAD in a statement.

 “With access to capital, they can attract more investors and partners, grow their businesses, and create employment opportunities – especially for young people and women,” Houngbo said.

According to Babban Gona, the loan will help the organisation support 377,000 small-scale rice and maize producers in Nigeria with a comprehensive package of training, quality inputs, and marketing services. Business Day