The FASA Fund: Financing Agricultural Small-and-Medium Enterprises in Africa
Agricultural small and medium enterprises (agri-SMEs), as Africa's largest employer and economic engine, are the key to fighting hunger. Yet three out of four agri-SMEs can’t access bank loans, and are too large for microfinance, creating an estimated $100 billion gap in unmet demand for financing. Bridging this gap is critical to feeding the future.
USAID Administrator Samantha Power and Norwegian Minister of International Development, Anne Beathe Tvinnereim, introduced the FASA Fund in September 2023.
At the 2023 U.N. General Assembly, USAID and Norway announced the Financing for Agricultural Small-and-Medium Enterprises in Africa (FASA) Fund to spur investment in Africa’s agricultural growth. Working together, USAID and Norad will each provide an initial commitment of $35 million. With these commitments, Norway and the U.S. aim to reach $200 million through additional donor contributions to catalyze hundreds of millions more in commercial financing by reducing investment risk. This fund has the potential to support 500 agri-SMEs and 1.5 million smallholder farmers, ultimately benefiting nearly 7.5 million people. The fund will also support nearly 60,000 private sector jobs.
The fund is expected to be formally launched in mid-2024.
