eco.business Fund extends a USD 5 million loan to Family Bank Kenya for agribusiness | TechMoran
Summary
We seek to adopt sustainable practices, playing a pivotal role in biodiversity conservation, sustainable resource utilization, and climate change mitigation and adaptation in this biodiverse region.The collaboration seeks to bolster sustainability-certified companies, small-holder farmers, and other agribusiness value chain actors embracing eco-friendly and climate-smart approaches to enhance the competitiveness of agribusinesses.Family Bank, a renowned player in Kenyas banking industry, has been an ideal partner for the fund due to its focus on agribusinesses. Notably, this partnership aligns with the eco.business Funds mission to combat climate change and preserve biodiversity, as it enables the fund to engage with a diverse range of agribusiness value chains and actors and promote sustainable practices across them.Agriculture is vital to Kenyas economy, contributing 33 percent of the Gross Domestic Product (GDP) and another 27 percent of GDP indirectly through linkages with other sectors, accounting for 65 percent of the countrys export earnings . As a homegrown Bank, we have been deliberate in widening our capital base and scaling up lending to this sector, particularly through partnerships, said Family Bank CEO Designate Nancy Njau.Our partnership with eco.business fund has been a testament to our continued commitment to supporting the growth of local markets by providing end-to-end value. We have recorded a significant increase of 25 per cent in our agribusiness portfolio following such partnerships and we are confident that now we can scale up lending to agribusinesses and bridge their financial need to scale climate-smart agriculture technologies to enhance climate resilience, she concluded.Sheddi Maxine Chehab, Investment Manager at the funds advisor Finance in Motion said We are impressed with the growth potential and dedication of Family Bank as it has managed to not only grow but diversify its portfolio significantly since the beginning of our partnership. Were glad to keep supporting them on their growth journey through financing and tailored technical assistance in areas like implementing a robust Environmental and Social Risk Management System (ESMS), and overall strategy implementation.Anticipated to advance the funds overarching mission, this investment aligns with promoting business and consumption practices contributing to biodiversity conservation and climate action (both adaptation and mitigation).