MICROCAPITAL BRIEF: IFC Approves $20m Loan to Agrofértil of Paraguay to Support Farming, Gender Equality Amid COVID-19 Downturn

The International Finance Corporation (IFC), a member of the World Bank Group, recently agreed to loan up to USD 20 million in working capital to Agrofértil, a company that provides credit, crop insurance, agricultural inputs and “agronomic services” to farmers and farmer cooperatives in Paraguay. Through the loan, which may be renewed yearly for five years, IFC aims to support Agrofértil in its work with farmers cultivating small and medium-sized plots including by endeavoring to “promote equal opportunities between women and men, the strengthening of sustainable business practices, and the acceleration of the post-pandemic recovery…”. Agrofértil will work toward these goals by providing loans for pre-harvest needs, giving farmers technical support and becoming certified by the Switzerland-based Economic Dividends for Gender Equality (EDGE) Certified Foundation. The foundation launched EDGE certification in 2011 to help “measure, accelerate, and certify gender and intersectional equality in the workplace.” As of 2021, there are 144 EDGE certified enterprises employing approximately 2.4 million people in 44 countries.

Founded in 1993, Agrofértil is headquartered in Ciudad del Este. As of 2021, its network includes 25 locations providing financial services, facilities to store agricultural products or both. Financial information on the firm is not available.

Founded in 1956, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. During the 12 months ending June 2020, IFC reported total disbursements of USD 26 billion, closing the year with total assets of USD 96 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2021, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2020, the World Bank Group disbursed funds totaling USD 54 billion.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

IFC press release
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=26441

Agrofértil homepage
https://www.agrofertil.com.py/

EDGE Certification homepage
https://edge-cert.org/

IFC annual report 2020
https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+report/download

World Bank Group homepage
https://www.worldbank.org/

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