MICROCAPITAL BRIEF: Global Index Insurance Facility to Donate $4m to Syngenta Foundation for Sustainable Agriculture in Kenya, Rwanda and Tanzania

The International Finance Corporation (IFC), the US-based World Bank Group’s private investment arm, has approved two grants totaling USD 3.9 million to Syngenta Foundation for Sustainable Agriculture, a Swiss nonprofit organization, to provide index-based weather insurance to rural farmers in Kenya, Rwanda and Tanzania. Index insurance pays benefits based on deviations from predetermined ranges of weather conditions such as rainfall level or temperature. The grants were issued by the Global Index Insurance Facility, a trust fund managed by IFC and supported by the European Union, Japan, the Netherlands and the World Bank. Syngenta plans to use the grant money to reach approximately 600,000 “small-scale farmers” by the end of 2014 as well as launch operations in Tanzania [1].

Syngenta seeks to boost agricultural productivity in developing nations by facilitating access to markets for subsistence farmers and providing them with operational support. Financial information for Syngenta is not available. As of fiscal year-end 2013, IFC reported total assets of USD 77.5 billion.

By Meraj Husain, Research Associate

About International Finance Corporation (IFC)

A US-based multi-lateral development bank and member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of fiscal year-end 2013, IFC reported total assets of USD 77.5 billion.

Sources and Additional Resources

[1] International Finance Corporation: “IFC, EU and Syngenta Foundation to Expand Weather Insurance to One Million East African Farmers,” http://ifcext.ifc.org/ifcext/Pressroom/IFCPressRoom.nsf/0/FE46067B97E3F39D42257C760029E485

MicroCapital, February 11, 2014, “International Finance Corporation (IFC) Loans $4m to Grooming Centre in Effort to Reach 708k Nigerian Microenterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-4m-to-grooming-centre-in-effort-to-to-reach-780k-nigerian-microenterprises/

MicroCapital, February 7, 2014, “International Finance Corporation (IFC) Loans $20m to Attawfiq Micro-Finance for Microlending in Morocco,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-20m-to-attawfiq-micro-finance-for-microlending-in-morocco/

MicroCapital, December 27, 2010, “International Finance Corporation (IFC) Expands Microinsurance in Kenya and Rwanda Through Syngenta International Livestock Research Institute Microensure,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-expands-microinsurance-in-kenya-and-rwanda-through-syngenta-international-livestock-research-institute-microensure/

MicroCapital, December 4, 2009, “International Finance Corporation (IFC), European Commission and Netherlands’ Ministry of Foreign Affairs Launch Global Index Insurance Facility to Expand Access to Microinsurance,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-european-commission-and-netherlands%E2%80%99-ministry-of-foreign-affairs-launch-%E2%80%98global-index-insurance-facility%E2%80%99-to-expand/

MicroCapital Universe Profile: Syngenta Foundation for Sustainable Agriculture (SFSA) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Syngenta+Foundation+for+Sustainable+Agriculture+%28SFSA%29

MicroCapital Universe Profile: International Finance Corporation (IFC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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