Alterfin

Debt : July 2020

Alterfin is a Belgian financial cooperative created in 1994 to invest in smallholder farming in developing countries via microfinance institutions, small and medium-sized enterprises (SMEs) and producers' organisations.

Amount

€ 3,000,000.00

Type of investment

Debt

Development impacts

  • Private sector consolidation/innovation
  • Financial inclusion
  • Food security & rural development
  • Promotion of ESG best practices
  • Gender

Beneficiary locations

Asia:
Latin America and Caribbean:
Sub-Saharan Africa:

Investment field

Financial Institutions

Activity

Non-Bank Financial Instititution

Organisation

Alterfin

Domicile

Belgium

More investments in

Alterfin

  • Equity € 250,000.00 (2002)

Alterfin’s goal is to improve the livelihoods and living conditions of socially and economically disadvantaged people and communities, predominantly in rural areas in low and middle-income countries;

Alterfin is particularly committed to finance the “missing middle” by offering smaller loans (EURO 336,000 on average- being 30% lower compared to peers) to cover working capital needs of sustainable small agriculture project “SA” active in 14 value chains. To MFI’s, Alterfin provides loan mainly1 in local currency. The organization is also firmly rooted to a familial, sustainable and Fairtrade farming since 76% of investments in sustainable agriculture are certified organic and 73% fair trade;

Development impacts

  • Private sector consolidation/innovation

    Alterfin serves smallholder farmers and cooperatives that have been underserved so far (missing middle) and that crucially need financing in form of trade, harvest finance to stabilize their income streams.

    Alterfin is an established partner of BIO with experience working with MFIs and a focus on rural populations.

    Alterfin provides technical assistance through a TA facility to enhance the investees' productivity, support certifications and improve governance. Alterfin also manage TA facility from third party fund where it acts as fund manager.

  • Financial inclusion

    Financing Agri-focused MFIs is one of the three investee types of Alterfin which can invest up to 65% in MicroFinance Institutions active in the agri space.

  • Food security & rural development

    Alterfin's focus on sustainable and fairtrade certifications ensures that farmers receive a premium on their produce, insuring them against fluctuations in the world prices and providing sustainable incomes. 73% of agriculture partners are certified fair trade, 76% organic. Certification can however be costly for smallholder and not profitable when products are sold on local market (10% target of portfolio), Alterfin is then watching mosly for sustainability rather than certification itself.

  • Promotion of ESG best practices

    73% are fairtrade and/or sustainable certified or in the process of obtaining the certification. Certification can however be costly for smallholder and not profitable when products are sold on local market (10% target of portfolio), Alterfin is then watching mosly for sustainable practice rather than certification itself.

    73% are fairtrade and/or sustainable certified or in the process of obtaining the certification. Certification can however be costly for smallholder and not profitable when products are sold on local market (10% target of portfolio), Alterfin is then watching mosly for sustainable practice rather than certification itself.

    Fairtrade Standards encourage democratic leadership, administrative efficiency, transparent accounting and improved governance.

  • Gender

    Focus on MFI targeting poorer population (in which women). 66% of beneficiaries are women in microfinance, 25% women in agriculture

    STAFF : 42% women.
    3 out of 8 board members are women.
    2 out of 3 managers are women.

Read impact and news about this project

EDFI AgriFI and BIO contract €6M with Alterfin

News

EDFI AgriFI and BIO contract €6M with Alterfin

17-08-2020

EDFI AgriFI and BIO each commit to finance the equivalent of EUR 3 million in USD to reinforce Alterfin’s sustainable agriculture and microfinance portfolios. The combined investment will provide Alterfin with long-term financing to support its expansion in Africa, Latin-America and Asia. The financing from BIO will likely also be accompanied by technical assistance, a first for Alterfin.

Read more