eco.business Fund and Fidelity Bank form new partnership to expand access to finance for agribusinesses in Ghana
Luxembourg and Accra, 31 August 2022 - The eco.business Fund, an impact investment fund advised by Finance in Motion, has made its first investment in Ghana, extending USD 15 million to Fidelity Bank. The senior loan will be on-lent to a wide range of agribusinesses that cover the entire value chain - from food production to logistics and supply chains across domestic staples and export crops – while promoting production and consumption practices that contribute to the sustainable use of natural resources and biodiversity conservation.
The partnership will enable both parties to work together to build the capacity of agribusinesses directly in key value chains. The partners will strive to promote market linkages, climate-resilient and sustainable agricultural practices, as well as provide technical support and training to agribusinesses and bank staff.
As a major player in the banking and finance space in Ghana, Fidelity Bank demonstrates its leadership by supporting the growth of the agricultural sector, not just because of the business and commercial opportunities it presents, but most importantly the direct impact it has on job creation, food security, improved livelihood, and gender inclusion. The bank provides tailor-made solutions to agribusinesses across most value chains with a focus on tree crops, nuts, cereals, livestock production, roots and tubers as well as across agrochemical and input supplies. The bank’s strong commitment to small and medium enterprises (SMEs), financial inclusion, and sustainability makes it an ideal partner for the fund.
A country with rich biodiversity and a large share of agriculture in its GDP and employment, Ghana is striving to be food self-sufficient in the coming years. The country has taken active steps towards sustainability and food security through the adoption of sustainability standards within the agribusiness sector, a focus on domestic production, and key export commodities. The partnership between Fidelity Bank and the eco.business Fund ascertains the mutual commitment of both parties in delivering on this agenda.
Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, said: “We are proud to join forces with Fidelity Bank to support the entire agrifood value chain in export and domestic crops. The fund’s investment not only provides much needed patient capital to agribusinesses but will also have a positive impact on sustaining employment, improving sustainable agriculture practices and domestic food security.”
Commenting on the partnership, the Managing Director of Fidelity Bank Ghana, Mr. Julian Opuni noted “We are happy to be forging this strong partnership with the eco.business Fund which will boost the growth of the agricultural sector. This reinforces Fidelity Bank’s continuous support to the growth of agribusinesses in the country. In addition to the funding, we will also provide capacity building to customers in the agribusiness value chain. As an indigenous bank that embodies Ghanaian excellence, we see this partnership as catalyst for growing the SME sector as it will boost our capacity to support more SMEs in the agribusiness space”.
About the eco.business Fund
The eco.business Fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America and the Caribbean, and sub-Saharan Africa. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The eco.business Fund provides financing through three avenues: local financial institutions that are committed to the fund’s mission and which have the capacity to reach its target group; directly to its target group (i.e. companies and producers); and in the case of sub-Saharan Africa, to real sector intermediaries. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and sustainable tourism. Target beneficiaries are those that hold an eligible sustainability certification or those taking out a loan to make eligible sustainable investments in their operations.
Operating together with each of the two sub-funds, are two development facilities that provide high-impact technical assistance to investment partners and final borrowers. The fund’s impact management system, through its advisor Finance in Motion, underwent an independent verification by impact auditor BlueMark affirming strong Operating Principles for Impact Management alignment in 2021.
An impact investment fund advised by Finance in Motion, the eco.business Fund was initiated by Germany’s KfW Development Bank and Conservation International with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ).
The sub-fund for Latin America and the Caribbean has received funding from the European Commission as well as from numerous other prestigious development finance institutions and institutional investors.
The sub-fund for sub-Saharan Africa was launched in 2020 with initial funding from BMZ.
For more information, please visit www.ecobusiness.fund and follow us on Twitter @ecobusinessfund
About Fidelity Bank Ghana
In a little over a decade, Fidelity Bank Ghana has grown from a discount house to a Tier-1 Bank and is now the largest privately-owned Ghanaian Bank in Ghana. The bank currently serves its approximately 2 million customers in 75 branches across Ghana and is a leader in the digital banking space. The bank has two subsidiaries, Fidelity Asia Bank Limited, which is a wholly owned subsidiary in Malaysia and Fidelity Securities Limited, an asset management firm. In a short period of time, Fidelity Bank has become a household name in Ghana by adopting a customer-centric culture and delivering consistently on the promise of making a difference in the lives of all stakeholders.
Media contact eco.business Fund
Manager, Marketing & Communications
Phone: +49 (0)69 / 271 035-171
Media contact Fidelity Bank
Fidelity Bank Ghana Limited – Head Office
Ridge Towers-Cruickshank Road, Accra
Phone: 030 221 4490