Supporting Rural Finance: Equity Investments from EDFI MC, IDH Farmfit Fund and Abler Nordic in Agora Microfinance Zambia
AgriFI – ACP Regional Window managed by EDFI Management Company, Abler Nordic, and IDH Farmfit Fund join forces to empower Zambian rural communities through AMZ. This strategic investment combines AgriFI’s expertise as a catalyser, Abler’s commitment to sustainable finance, and IDH Farmfit’s de-risking model for smallholder farmers.
Brussels, Belgium – 18 December 2024 – EDFI Management Company (EDFI MC), IDH Farmfit Fund and Abler Nordic announced today an equity investment in an amount of ZMW 172,962,000 ~USD 6,26m in Agora Microfinance Zambia (AMZ). This strategic investment aims to transform AMZ into a deposit-taking Microfinance Institution and expand its reach to rural Zambian communities.
Agora Microfinance Zambia is a non-deposit microfinance institution established in 2011 to improve financial access in rural Zambia. AMZ serves over 150,000 clients across Zambia’s 10 provinces, focusing primarily on smallholder farmers and small traders. The institution operates through a network of 40 branches, reaching remote and underserved areas often neglected by other financial institutions.
Group loans make up around 75% of AMZ’s loan portfolio, but the Company has also expanded its offerings to include individual, agricultural, SME, and leasing loans, as well as life, health, and weather-index insurance, and mobile money services. AMZ’s vision is to create a Zambia where economic opportunities enable the poor to improve their livelihoods and lift themselves out of poverty. AMZ’s commitment to social impact has been recognized by 60 Decibels, ranking it as the 3rd best Microfinance Institution in Africa in the Microfinance Social Impact Awards. By 2030, AMZ aims to create 600 direct jobs, double the number of beneficiaries, and grow the agriculture-related portfolio by 400%.
The AgriFI ACP Regional Window, funded by the EU and the OACPS, and managed by EDFI Management Company, is dedicated to catalysing private investments in sustainable agriculture and agri-businesses in developing countries. Yvonne Chileshe, Expert on Value Chains at OACPS, emphasized the alignment of this investment with their goals, stating, “This investment in AMZ perfectly aligns with our objectives of promoting sustainable agriculture and financial inclusion in ACP countries. It demonstrates the power of collaborative efforts in driving meaningful change in rural communities.”
The Managing Director of Abler Nordic, Arthur Sletteberg, expressed enthusiasm for the partnership, adding, “We’re looking forward to collaborating with the team to broaden access to financial services in rural Zambia. AMZ’s ranking among Africa’s top three in the 2024 60 Decibels Microfinance Index really shows the impact they’re making in rural communities. With 94% of the surveyed customers reporting increased income and 82% accessing loans for the first time, AMZ are reaching underserved areas that others shy away from.”
The IDH Farmfit Fund, the world’s largest public-private impact fund for smallholder farmers, aims to transform rural finance by de-risking investments and fostering sustainable impact. According to Barbara Visser, Chief Operating Officer of IDH Investment Manager, the Manager of the Farmfit Fund: “This investment demonstrates the IDH Farmfit Fund’s commitment to advancing financial inclusion for smallholder farmers and will contribute to strengthening Agora’s operations.”
The CEO of Agora Microfinance Zambia, Susan Chibanga stated that “This investment underscores the confidence in the institution’s governance, scalability, and long-term potential. It’s a significant step towards financial inclusion, addressing systemic barriers to finance and promoting social impact by creating opportunities for economic participation.
This investment will enable AMZ to diversify its offerings including opportunities for savings, increase outreach by opening new branches, and upgrade technology infrastructure. Our services empower low-income households and small entrepreneurs to build resilience, improve livelihoods, and generate wealth.”
Rodrigo Madrazo, CEO of EDFI Management Company, commented on the significance of the investment, saying, “Our investment in AMZ represents a significant step towards expanding financial access in rural Zambia. By supporting AMZ, we’re helping AMZ to pave the way for more affordable financial services for smallholder farmers.”
About Abler Nordic
Abler Nordic, established in Oslo in 2008 as a public-private partnership, invests in companies across Sub-Saharan Africa and Asia that provide financial services to low-income households. Initially focused on microfinance, it has since expanded to support a wider range of services, including affordable housing and small business financing. As an active partner, Abler Nordic collaborates closely with its portfolio companies to drive both social impact and sustainable financial performance. Managing USD 450 million across six funds, its investors include Norfund, IFU, and private financial institutions from Norway and Denmark. For more information, visit: www.ablernordic.com
About IDH Farmfit Fund
IDH Farmfit Fund is a Euro 100m public-private impact fund for smallholder farmers, many of whom are amongst the poorest people in the world. IDH Farmfit Fund takes on the highest-risk positions in farmer related investment transactions, to reduce liabilities for borrowers and lenders. In turn, smallholder farmers can access long-term financing that allows them to invest in their farms, increase productivity, and adopt best practices for climate-smart agriculture. The IDH Farmfit Fund managed by IDH Investment Management and is facilitated by IDH and supported by a unique coalition of partners including commercial banks, development banks, government bodies and value chain companies. For more information, visit, https://www.idhsustainabletrade.com/farmfit-fund/
About EDFI Management Company
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union, managed by EDFI Management Company, with a mandate to unlock, accelerate and leverage sustainable investments in medium, small and micro agri-enterprises (MSME) that operate in developing countries, with a specific focus on smallholder’s inclusiveness. For more information, visit www.agrifi.eu and www.edfimc.eu.
About AgriFI – Regional Window for ACP countries
AgriFI – Regional Window for ACP countries, is a dedicated investment window within EDFI-AgriFI allocated to invest in entities operating specific agriculture value chains in African, Caribbean and Pacific countries. For more information, visit https://edfimc.eu/what-we-do/agrifi/acp-regional-window/, https://www.businessacp.com and https://www.oacps.org.
For more information, please contact:
Natasa Lakovic
Senior Communication Specialist
EDFI Management Company
Email: n.lakovic@edfimc.eu
Isaac Mungoma
Senior Investment Manager
IDH Investment Management
Email: mungoma@idhtrade.org
Alessia Molteberg
Communication Manager
Abler Nordic AS
e-mail: am@ablernordic.com
