The philosophy of SME Impact Fund is to address the financial challenges that smallholder farmers face and unlock their agricultural potential by financing their buyers (SMEs, i.e., processors).
Rather than financing smallholder farmers directly, which would be commercially unsustainable due to high transaction costs and high-risk investments, SME Impact Fund uses the relationship between SMEs and smallholder farmers to channel funding needs. This also fits into the broader value chain approach they promote.
