Absa Bank Kenya will offer Sh1.3 billion ($10 million) credit line to agri-based domestic and export businesses in a deal with the German KfW Development Bank-backed eco.business fund.
The agreement targets easing financing access to agricultural value chains in a bid to improve resource efficiency, food security and cushion against the effects of climate change in the sector.
“Supporting sustainable and climate-resilient agricultural practices and strengthening local value chains are some of the fund’s top priorities. Our investment will contribute towards equipping various value chain actors in Kenya, including agricultural producers, aggregators, processors and exporters,” noted Michael Evers, the eco.business fund chair.
About 300 firms will receive training on post-harvest loss reduction and financial literacy in the cereal, horticulture and dairy value chains.
“As a bank, we are fully cognizant of the immense contribution that agriculture makes to Kenya’s economy as the country’s economic mainstay and hence our collaboration with such like-minded partners towards the continuous growth and development of the sector,” said Absa Bank’s Business Banking Director Elizabeth Wasunna.
“This partnership complements our four-pronged approach of access to markets, information, mentorship and coaching and access to sustainable finance.”
The eco.business fund, initiated by KfW and Conservation International with funding from the German Federal Ministry for Economic Cooperation and Development and the European Union, promotes business and consumption practices contributing to biodiversity conservation in Latin America, the Caribbean and Sub-Saharan Africa.