MICROCAPITAL BRIEF: Calvert Impact Loans $5m to One Acre Fund for Agricultural Inputs, Clean-energy Equipment Leasing to Smallholder Farmers in East Africa

Calvert Impact Capital, a US-based NGO that raises funds for organizations with “a social and/or environmental focus,” recently loaned USD 5 million to One Acre Fund, a US-based NGO active in the agriculture sector in Africa. One Acre plans to use the proceeds to purchase: (1) agricultural needs such as fertilizer and seed; (2) and “green” energy equipment, such as solar panels and environmentally-friendly cookstoves. The organization then will lease these items to small-scale farmers in East Africa. One Acre also has budgeted a portion of the funds for pilot programs in Asia and countries it has not previously served in East Africa.

Jenya Shandina, a senior manager at One Acre, said, “[S]mallholder farmers need improved access to high-quality inputs, financing, and agricultural training to achieve food security and prosperity in their homes. Our partnership with Calvert Impact Capital will enable us to deliver services to more farmers, helping create futures of big harvests, healthy families, and rich soils.”

One Acre offers financing for agricultural inputs and “green” equipment, distribution of these items, agricultural training, crop insurance, and market facilitation to smallholder farmers in Burundi, Kenya, Malawi, Rwanda, Tanzania and Uganda. As of December 2017, One Acre reported total assets of USD 87 million, receivables from farmers of USD 10 million, and inventory including USD 19 million in farming inputs and USD 4.7 million in solar panels. For 2017, it reported income of USD 100 million. As of 2018, it serves 600,000 farming families.

Founded in 1995 as the Calvert Foundation, Calvert Impact invests in companies in the affordable housing, agriculture, community development, education, environmental sustainability, health, microfinance and renewable energy sectors. The organization is active in 100 high- and low-income countries. As of 2018, Calvert Impact’s portfolio of 116 investments is valued at USD 377 million. In 2017, it launched a syndication service through which it has raised USD 79 million as of 2018.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Calvert Impact press release
https://www.calvertimpactcapital.org/press/releases/817-calvert-impact-capital-announces-the-closing-of-a-5-million-loan-to-one-acre-fund

One Acre background
https://oneacrefund.org/what-we-do/farmers-first/

One Acre financial reports
https://oneacrefund.org/about-us/reports/

Calvert Impact background
https://www.calvertimpactcapital.org/about

Calvert Impact portfolio
https://www.calvertimpactcapital.org/portfolio

MicroCapital Brief; May 2, 2018; Calvert Impact Loans $5m to Global Communities’ Vitas Palestine, Ryada for Housing Microfinance, Mortgages in West Bank, Gaza
https://www.microcapital.org/microcapital-brief-calvert-impact-loans-5m-global-communities-vitas-palestine-ryada-housing-microfinance-mortgages-west-bank-gaza/

MicroCapital Brief; February 13, 2018; Smallholder Finance Product Explorer from MIX, One Acre Fund Highlights Microfinance Institutions’ Agricultural Loan Offerings
https://www.microcapital.org/microcapital-brief-smallholder-finance-product-explorer-mix-one-acre-fund-highlights-microfinance-institutions-agricultural-loan-offerings/

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