MICROCAPITAL BRIEF: Oikocredit Lending $2.7m to Africa Negoce Industries, Buyer of Cashews from Smallholder Farmers in Benin

The Dutch cooperative lender Oikocredit recently granted a line of credit with a cap of EUR 2.7 million (USD 2.7 million) to Africa Negoce Industries (ANI) a trader and processor of almonds, cashews and coal in Benin. ANI plans to use the credit to expand the network of smallholder farmers from whom it buys as well as its production of cashew kernels for export. The firm is also looking to boost its storage capacity and network of buyers. Oikocredit expects the investment will bring indirect benefits to low-income farmers in northern and central parts of the country.

ANI employs 500 people, approximately 80 percent of whom are women. It sources products from 2,500 farmers. Among its activities is to help these farmers gain Utz certification, a program of the US-based nonprofit Rainforest Alliance through which farmers can learn more productive and sustainable methods of farming.

Founded in 1975, Oikocredit invests debt and equity in financial inclusion, agriculture and renewable energy in Africa, Asia and Latin America with the goal “to improve the quality of life of low-income people or communities in a sustainable way.” As of March 2022, Oikocredit had investments valued at EUR 1.0 billion (USD 1.0 billion), deployed via 500 partners.

By Ben Greissman, Research Associate

Sources and Additional Resources

Oikocredit press release
https://www.oikocredit.coop/k/en/n2613/news/view/353125/9049/oikocredit-invests-2-7-million-in-africa-negoce-industries-to-support-benin-cashew-value-chain.html

ANI homepage
https://africanegoceindustries.com

Rainforest Alliance description of Utz
https://www.rainforest-alliance.org/utz/

Oikocredit homepage
https://www.oikocredit.coop

Previous MicroCapital article on Oikocredit
https://www.microcapital.org/microcapital-brief-electrifi-oikocredit-invest-8m-in-equity-in-solar-panda-to-expand-electricity-access-for-off-grid-communities-in-kenya-%ef%bf%bc/

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