NECESSARY GROWTH
The $9-million risk-sharing agreement is aimed at helping smallholder cocoa farmers to access the credit needed to grow production and earnings
Photo by: Bloomberg
The International Finance Corporation (IFC), a member of the World Bank Group, chocolate producer Barry Callebaut and the Netherlands Sustainable Trade Initiative (IDH) have announced a $9-million risk-sharing agreement to help up to 100 000 smallholder cocoa farmers in Côte d’Ivoire to access the credit needed to grow their production and earnings.
IFC director for manufacturing, agribusiness and services Alzabeta Klein points out that the IFC’s partnership with Barry Callebaut and the IDH will support industry players in their efforts to gain access to credit and training that will enable them to upgrade their operations and join value chains, linking them to cocoa buyers and global chocolate consumers.
Under this agreement, the IFC and Barry Callebaut will equally share the risk in the local currency-equivalent credit facility, which will allow for assistance for farmers in the buying of fertilisers and the leasing of large equipment such as tractors.
The farmers supply cocoa to two Barry Callebaut subsidiaries, the SocietéAfricaine de Cacao and Biopartenaire; both operate in Côte d’Ivoire.
Barry Callebaut CEO Antoine de Saint-Affrique says: “The start of this initiative represents an important step in promoting professional, sustainable cocoa farming, helping subsistence farmers become entrepreneurs.”
He adds that Barry Callebaut is proud to lead the efforts to professionalise cocoa farming and is excited about the support of its partners in this endeavour.
IDH executive director Joost Oorthuizen further notes that by derisking investments, the IDH will deepen its direct impact on farmers.
“Through this programme, we expect farmers to increase their bankability and ultimately the quality of their livelihood by leveraging public funding with private-sector contributions at a ratio of more than 1:10,” he says.