RED - Colombia Agribusiness Fund

Speeches Shim

OVERVIEW

The Colombia Agribusiness Fund promotes rural economic growth in marginalized areas of Colombia. The Activity was formed through a partnership between USAID and the Small Enterprise Assistance Fund (SEAF), and runs from March 2015 – March 2022.

Only two percent of Colombia’s foreign direct investment goes into agriculture, and the country’s agricultural sector has the weakest growth in Latin America.  However, a quarter of Colombia’s population reside in rural communities and an improved agriculture sector is key to advancing peace, stability and equitable development.  

COMPONENTS

Improving Citizens Quality of Life

Colombia Agribusiness Fund improves the lives of people in the rural Colombian regions by fostering employment and improving income. It does this through investments in fast-growing, small and medium-sized enterprises.

Raising Capital

Colombia Agribusiness Fund is investing USD $5.3 million through SEAF.  This money is being used to raise capital from other investors, including those with a social agenda.  Colombia Agribusiness Fund hopes to leverage between USD $13.9 million and USD $20 million through this investment.  

Providing Technical Assistance 

Colombia Agribusiness Fund and SEAF are working together to create a technical assistance tool for small and medium-sized businesses particpating in rural agribusiness value chains.  This tool will help develop an agribusiness network, enhance company operations, and provide employee training.

RESULTS

  • Leveraged USD $13.8 million in private capital investment commitments; 
  • Engaged investors like Finagro, Old Mutual and Pinagro in program efforts; and
  • Invested in socially, economically and environmentally oriented companies including: USD $2.2 million in ECOFLORA, a Colombian bio-technology company that sustainably extracts, processes, and commercializes organic colorants and biotechnology products; and USD $3.1 million in KINGO, a clean energy company that provides decentralized solar energy services to rural families and businesses in off-grid villages, enhancing their agribusiness capabilities and helping to reduce poverty.

 

Last updated: August 25, 2021

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