New Delhi, India, 10 October, 2018 (GPN) – The U.S. Agency for International Development (USAID) today announced a new partnership designed to support enterprises and projects engaged in the sustainable landscapes sector in order to reduce greenhouse gas emissions from land use.
This ten-year partnership with the Rabobank Foundation, the Ananya Finance for Inclusive Growth, and the Samunnati Financial Intermediation and Private Services will make available up to $15.3 million in local financing to small and medium private enterprises, cooperatives, producer companies and microfinance institutions, directly or indirectly engaged in the sustainable landscapes (agriculture, forestry, and other land uses) sector. The loan portfolio guarantee will encourage projects that practice low-emission land use and land management by preserving or restoring forests, and encouraging agricultural practices that reduce greenhouse gas emissions or increase carbon sequestration.
This partnership supports the Government of India’s priorities of improving the livelihoods of forest-dependent people, and small and medium farmers. This will be done by supporting small and medium forest-based conservation enterprises, and by promoting agroforestry and agroforestry-based enterprises. Agroforestry has the potential to increase the income of farmers, and at the same time divert pressure on the forests for timber, fuel wood and fodder. In addition to facilitating the much-needed flow of institutional credit, this partnership will help in demonstrating the long-term commercial viability of lending to the sustainable landscapes sector.
Affirming USAID’s commitment to advancing natural resources security, and improving economic opportunities, USAID/India’s Acting Deputy Mission Director Xerses Sidhwa said, “We at USAID are proud to encourage private sector lending in key sectors that are vital to economic development and natural resources security. Increasing access to credit to groups engaged with the sustainable landscapes sector will help them improve their own lives and improve their surrounding natural environment.”
Commenting on the partnership, Paul Schuilwerve, CEO and Country Head India, Rabobank said, “As responsible organizations, it is essential to make a cooperative effort and act together to address the daunting side of climate change on food and agriculture. I welcome the partnership of Rabobank Foundation and USAID, as it brings about an effort to restrict greenhouse gas emissions through sustainable forest management, integrated agroforestry and the promotion of climate smart agriculture practices. This partnership is also in line with Rabobank’s mission in striving towards ‘Growing a better world together’.”
The United States Agency for International Development is an independent agency of the United States federal government that is primarily responsible for administering civilian foreign aid and development assistance. USAID’s Development Credit Authority (DCA) works with investors, local financial institutions, and development organizations to design and deliver investment alternatives to mobilize local financing for U.S. Government priorities. To date, the DCA has helped mobilized up to $5.5 billion in financing in 80 countries across nearly six hundred projects. For more information about USAID, visit www.usaid.gov.
About Rabobank Foundation (RF)
Rabobank Foundation, the social fund of Rabobank, is the main pillar of Rabobank Group’s cooperative and sustainability policy. Aligned with the banking for food agenda of Rabobank, RF is focused on strengthening the upstream value chains and reducing the length of the chain for the benefit of smallholder farmers through knowledge sharing, finance, technology and networks. As of December 2017, RF has presence in 23 countries covering 322 live projects with allocation of $40 million.
About Ananya Finance for Inclusive Growth Private Limited
Ananya Finance for Inclusive Growth Pvt. Ltd. operates as a non-banking finance company in India. The company offers credit products to customers in the microfinance industry; agri-finance programs; and customized loan products for community based organizations and various livelihood oriented enterprises. The company was founded in 2009 and is based in Ahmedabad, India.
About Samunnati Financial Intermediation and Services Private Limited
Samunnati Financial Intermediation and Services Pvt. Ltd. operates as a financial intermediary. It provides a range of financial products and services to value chain actors and rural enterprises for their financial and other service requirements by working with various financial service providers, such as banks, insurance companies, payment service providers, etc. The company was founded in 2014 and is based in Chennai, India.