FtF IAM is working with processors and aggregators to increase investment in, and sales of, processed food products to quality markets. The Activity has co-invested with traders and processors to scale and strengthen supply chains by providing embedded services so that they can attain a steadier supply of quality raw material. Financial institutions such as Post Bank and Equity Bank are playing a key role by offering tailored financial services to the buyers, aggregators, and other actors along the value chain.
FtF IAM partner, Okeba Uganda Ltd., a bean and grain trader, signed an MoU with Post Bank Uganda this week that will enable its business agents, called Local Market Facilitators (LMFs), to access working capital through the bank’s Local Purchase Order (LPO) financing product. The LPO financing offers credit of up to 80% of the purchase order value at a 12% annual interest rates on a revolving basis for 3 years. Okeba is also in discussion with financial institutions such as Yunus Social Business to get affordable business loans. This working capital finance will benefit Okeba’s farmer suppliers by increasing the value of Okeba’s purchases, improving payment terms through LMF agents and scaling Okeba’s embedded services to more out growers. With FtF IAM, Okeba has an initial target of reaching 13,000 smallholder farmers (60% women and 40% youth) in Southwestern Uganda (Kamwenge, Kasese, Isingiro, and Kitagwenda).