Equity Group and the World Food Programme (WFP) have signed a historic agreement to support farmers and agricultural businesses. This collaboration aims to link WFP country offices with Equity Bank subsidiaries, providing financial literacy training and concessional financing to those involved in the food and agriculture value chain.
The agreement was signed by Dr. James Mwangi, CEO of Equity Group Holdings, and Cindy McCain, WFP Executive Director, during the WFP Executive Board Session in Rome. This partnership represents a new model of private sector engagement for development, particularly in marginalized communities where traditional financing is scarce.
Through the Equity Group Foundation, WFP and Equity will train value chain actors to access financing and offer technical assistance to prepare agri-processors and agri-preneurs for impact investments via Equity Bank.
This new agreement builds on a successful collaboration in the Democratic Republic of the Congo (DRC), where Equity BCDC has been promoting sustainable food security since 2022. In the DRC, Equity BCDC has facilitated $10 million in loans to local agri-businesses, including smallholder farmers and food processors, providing them with technical assistance and concessional financing.
Dr. Mwangi emphasized the critical role of private-sector partnerships in addressing food crises and building resilient food systems worldwide. He highlighted Equity’s commitment to supporting small-scale farmers, who comprise 70% of the world’s 600 million farms.
Dr. Mwangi’s address to the WFP Executive Board was a historic moment, marking the first time a CEO from the Global South was invited to speak at this forum. Smallholder farmers are crucial for food production in developing countries, providing over 70% of food calories in Asia and sub-Saharan Africa.
Developing local food value chains is essential for enhancing farmers’ incomes and livelihoods, contributing to global food security. WFP’s Executive Director, Cindy McCain, emphasized the power of innovative partnerships in addressing hunger, highlighting the importance of empowering farmers with the necessary tools and resources.
The partnership will focus on educating farmers about climate resilience, regenerative agriculture, and financial management to support sustainable agricultural practices. Additionally, efforts will be made to provide infrastructure support to mitigate food waste, ensure market access, and facilitate the transportation of goods. Equity Bank’s partnerships with technology firms like Hewlett Packard, Microsoft, and the Bill and Melinda Gates Foundation will provide small-scale farmers with modern solutions to improve their farming practices.
Equity, along with founding partners such as Microsoft and Heifer International, formed the MADE Alliance to address the needs of over 100 million small-scale farmers using digital technology. For the past five years, Equity has also collaborated with the Mastercard Foundation to support agricultural SMEs through the Young Africa Works Program, providing entrepreneurial training and financing.
Dr. Mwangi reaffirmed Equity Group’s commitment to scaling up support for small and medium-sized farmers, emphasizing the need to diversify food sources and include vulnerable populations in agricultural development. This partnership with WFP represents a significant step towards achieving these goals, enhancing food security, and improving livelihoods globally.
