Agricultural and Rural Impulse Fund – agRIF

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The Agricultural and Rural Impuslse Fund (agRIF), managed by Incofin IM, will invest in financial intermediaries in emerging economies (Africa, Asia, LAC Region, CEE-NIS), that enhance financial inclusion of smallholder farmers and rural micro-, small and medium sized entrepreneurs (MSMEs) in the agricultural value chain. agRIF is a 10 year closed-ended mixed fund, that will make equity and debt investments in financial institutions that provide agriculture focused products. The average ticket size of the investments will be between 5-10 million USD.

agRIF capitalizes on the experience of its predecessor funds, Rural Impulse Fund I & II, the performance of which is in line or exceeding return and outcome targets. These funds reach out to 3.8 million clients, 68% of which are located in rural areas.

First Close Investors include the European Investment Bank (Luxembourg), Proparco (France), SIFEM (Switzerland), Volksvermogen (Belgium), ACV-CSC Metea (Belgium), KBC Bank (Belgium), Bank für Kirche und Caritas (Germany), VDK Spaarbank (Belgium) and Incofin IM (Belgium). Most of these investors have invested in the predecessor funds and now return to invest in agRIF as they value the good returns and share Incofin IM’s commitment to increasing access to finance for the agriculture value chain.

“agRIF will invest in financial institutions in order to support and accelerate their growth and the expansion of their agricultural and/or rural portfolio. It will do so, thanks to the hands-on and dedicated involvement of Incofin IM’s experienced team of private equity and investment managers. In addition, agRIF will benefit from a technical assistance facility that will actively support the portfolio companies. The expected outcome of the Fund’s investments, is the building of stronger, more resilient and more profitable financial institutions and the access to adapted financial services for substantially larger numbers of actors in the agricultural value chain, especially MSMEs. Incofin IM will rigorously monitor and measure the outcome of agRIF’s investments. We are convinced that the new Fund, based on 15 years of experience in rural finance, will contribute value at all levels: investors, investees, clients and agricultural value chain operators. We have demonstrated in the past that we always translated our funds’ ambitions into reality. We are happy to observe that top notch investors acknowledge our leadership in this area”, says Loïc De Cannière, CEO of Incofin IM.

“We are excited about continuing our partnership with Incofin IM as a leading microfinance fund manager with the launch of agRIF. BIO is proud to be part of this ground-breaking fund that will create opportunities for rural MSMEs to develop and grow, thereby generating income and jobs and that will innovate by focusing on financial institutions that specifically target smallholder farmers as final beneficiaries”, said Luuk Zonneveld, CEO of BIO.


  • Investment amount (€):

    USD 7.5 million

    Fund targeting agricultural and rural financial institutions

  • Contract signature :

    2015

  • Nature of intervention :

    Equity

  • Development impacts :

    • 1 — Improve financial inclusion for smallholder farmers
    • 2 — Strengthen targeted financial institutions