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Impact Report

2021

Introduction

Spotlight stories

Partners

Our approach

Our story

Tell us what you think

 

www.smallfoundation.ie

Root Capital

Root Capital provides credit and capacity-building to small and growing agricultural businesses around the globe. Small Foundation supported Root Capital from 2016-21, and helped Root Capital to improve its back and middle office to be more effective. This strengthened Root Capital’s capacity to invest in the growth of high-impact agribusinesses to improve smallholder farmer livelihoods worldwide, most notably in sub-Saharan Africa.

Our partnership and learning

“Small Foundation supported our work in a relatively broad sense, helping us to streamline systems and further build the field of smallholder agricultural finance in sub-Saharan Africa. This has allowed us to enhance our digital infrastructure, refine our capital partners strategy and support field building and thought leadership.”

“We have launched Bank Core to increase the financial sustainability of our lending platform; significantly enhanced our credit facilities helping us to reach further down market so that 91% of our loans in 2021 filled a commercial financing gap; built the agricultural finance and impact investing sectors by launching two peer groups and piloting an effective vehicle for increasing investments in high-impact, high-risk agribusinesses; and refreshed our lending strategy and demonstrated our credit model in key geographies in Africa.”

We have learned that better outcomes can be achieved by focusing on fewer value chains and particularly those geared to exports such as coffee and macadamia; that some countries have legal and regulatory systems that are too complex and it is better to focus on countries with enabling environments; and that working capital loans should be prioritised because they have the most effective combination of investor risk and impact”

– Root Capital

Back

Root Capital has invested in 400 agribusinesses worldwide improving the lives of over 1 million smallholder farmers.

Root Capital provided loans in 7 countries in SSA in 2021 (reduced from 11 countries by 2021 as the portfolio was rationalised).

In 2021, Root Capital closed 51 loans in Africa, with a total value of $27.6m.

91% of loans filled a global commercial financing gap.

Root Capital

Root Capital provides credit and capacity-building to small and growing agricultural businesses around the globe. Small Foundation supported Root Capital from 2016-21, and helped of high-impact agribusinesses to improve smallholder farmer livelihoods worldwide, most notably in sub-Saharan Africa.

Key Figures:

  • Root Capital has invested in 400 agribusinesses worldwide improving the lives of over 1 million smallholder farmers
  • Root Capital provided loans in 7 countries in SSA in 2021 (reduced from 11 countries by 2021 as the portfolio was rationalised).
  • In 2021, Root Capital closed 51 loans in Africa, with a total value of $27.6m.

Our partnership and learning:

“Small Foundation supported our work in a relatively broad sense, helping us to streamline systems and further build the field of smallholder agricultural finance in sub-Saharan Africa. This has allowed us to enhance our digital infrastructure, refine our capital partners strategy and support field building and thought leadership.

We have launched Bank Core to increase the financial sustainability of our lending platform; significantly enhanced our credit facilities helping us to reach further down market so that 91% of our loans in 2021 filled a commercial financing gap; built the agricultural finance and impact investing sectors by launching two peer groups and piloting an effective vehicle for increasing investments in high-impact, high-risk agribusinesses; and refreshed our lending strategy and demonstrated our credit model in key geographies in Africa.

We have learned that better outcomes can be achieved by focusing on fewer value chains and particularly those geared to exports such as coffee and macadamia; that some countries have legal and regulatory systems that are too complex and it is better to focus on countries with enabling environments; and that working capital loans should be prioritised because they have the most effective combination of investor risk and impact”

– Root Capital

Back