Greenland Fedha Limited
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Kenya Tea Development Agency Ltd (KTDA) is the leading management agency for the small scale tea farmers in Kenya, Africa. In Kenya, the vast majority of tea is grown on small farms where the average farm size for KTDA members is from half an acre to one acre. The mission of KTDA is to provide effective management services to the tea sector for efficient production, processing and marketing of high quality teas and investing in related profitable ventures along the value chain for the benefit of shareholders and other stakeholders. KTDA, as a company, fits very well within the agribusiness strategy. With support from IDH and Unilever, KTDA field staff train farmers to improve the productivity and quality of tea yields through techniques such as planting, pruning, weeding, and fine-plucking. KTDA also trains farmers in sustainable agriculture practices and helps them meet the requirements for Rainforest Alliance certification. In 2012 KTDA, Unilever and IDH designed a program to further upscale and embed sustainability within KTDA smallholder tea production in Kenya. The partnership will combine the Rainforest Alliance (RA) trainings with the Farmer Field School (FFS) trainings to maximize sustainable impact. FMO's client is Greenland Fedha Limited (GFL) is a non-deposit taking unlicensed microfinance institution, fully owned by KTDA.
What is our funding objective?
Through MASSIF FMO is providing a US$10 million medium-term facility to Greenland Fedha Limited (GFL). FMO's financing will enable GFL to realize its potential of reaching 600,000 smallholder tea farmers, who cultivate over 100,000 hectares in prime tea-growing areas. Availability of reasonably priced funds in rural areas will allow for investment in higher and more sustainable production, increased revenues and increased spending on education.
Why do we fund this investment?
GFL's mandate is to provide a variety of affordable financial services to the low-income households (i.e. small holders) in the tea sector. As of now, it only lends to tea farmers associated with KTDA. Since 2009, 69,000 farmers have received loans in order to pay to buy farm inputs, tools, improve tea farming, and support micro businesses. GFL expects to grow the customer base to 340,700 by the end of 2019, following a 5-year strategic plan. FMO's financing will be used by GFL to expand funding to smallholder tea farmers associated with KTDA.
More investments
| Date | Total FMO financing |
|---|---|
| 10/6/2020 | EUR 0.10 MLN |
| 6/19/2024 | USD 7.50 MLN |
- Website customer/investment
- http://www.ktdateas.com
- Region
- Africa
- Country
- Kenya
- Sector
- Financial Institutions
- Effective date
- 12/2/2014
- End date
- 6/19/2024
- Total FMO financing
- USD 10.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B