Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden, a development bank controlled by the Dutch government, recently offered a loan of USD 4 million to Babban Gona, a Nigerian for-profit company that provides business services to small-scale farmers such as assistance with crop insurance; soil analysis; marketing; distribution; and access to seeds, fertilizer and storage facilities.
The company extends these services through credit that is repaid at the end of each growing season. Babban Gona plans to use FMO’s financing to continue expanding its agricultural solutions throughout Nigeria.
Since it was established in 2012, Babban Gona has helped 21,000 customers, and it aims to serve 1 million by the year 2025. The company reports having raised farmers’ yields and incomes to 2 and 3.5 times higher than the respective national average levels.
The vision of FMO is to help abolish extreme poverty, increase equality and support measures that reduce climate change. It has total assets of EUR 8.5 billion (USD 9.5 billion) and profit before taxes of EUR 219 million (USD 245 million) for the year 2016.
By Ryan Gauthier, Research Associate
Sources and Additional Resources:
FMO press release:
Netherlands Development Finance Company (FMO):
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