Oikocredit to Further Increase Agricultural Investments

PR55102

AMERSFOORT, The Netherlands, Nov. 26 /PRN=KYODO JBN/ -

Social investor and worldwide cooperative, Oikocredit, will increase

investments in the agricultural sector in the next three years as part of its

agriculture strategy.

The strategic investment focus was developed several years ago as Oikocredit

saw that economic growth originating in agriculture had a greater impact in

raising the income and quality of life of the working poor.

Since the development of the strategy, Oikocredit has increased its

agricultural portfolio share from 9% (EUR 34.7 million) in 2009 to 12% (EUR 63.6

million) in 2012.

Oikocredit has set a target to approve EUR 27 million in new loans to

agricultural partners in 2014, with the aim to increase the portfolio share to

15% by 2016.

To support further growth in coming years, Oikocredit has strengthened its

investment team by developing a dedicated agriculture unit which will be headed

by Mr Frank Rubio, regional director of South America Northern Region, based in

Lima, Peru.

Mr Rubio has worked with Oikocredit since 2006 and is currently responsible for

operations in Colombia, Ecuador and Peru.

Mr Rubio has a background in microfinance and agricultural development and will

work closely with Oikocredit regional office staff to support the quality of

growth and impact of the agricultural portfolio.  

Oikocredit director of loans and investments, Mr Florian Grohs, said Mr Rubio's

appointment was a key step in increasing funding to the sector.

"Having specialised staff in the regions where we operate means we can draw on

their knowledge of local sectors to further support rural producers, processors

and various subsectors," said Mr Grohs.

"The new unit will also focus on financing organizations along the agricultural

value chain, as this is a way of reaching smallholder farmers through the

processor or distributor that buys their products," added Mr Grohs.

The increase in financial investments in the sector will be supported by

internal exchange programmes as well as training for existing and potential

agricultural partners.

This year, Oikocredit conducted around 30 capacity building initiatives to

strengthen agricultural partners, which will be further increased in coming

years.

At end October 2013, Oikocredit had 152 agricultural partners across 32

countries.

Oikocredit is one of the world's largest sources of private funding to the

microfinance sector, providing credit and equity to small businesses through

microfinance institutions across the developing world and directly to trade

cooperatives, fair trade organizations and small to medium enterprises.

Source: Oikocredit