Equity Group and the World Food Programme (WFP) have announced a groundbreaking agreement to provide essential support to small-scale farmers. This historic collaboration aims to boost sustainable food security by offering financial literacy training and accessible financing to agricultural value chain actors through Equity Bank subsidiaries.
Expanding a Proven Model
The agreement is a scaling of a development collaboration between WFP and Equity BCDC in the Democratic Republic of the Congo (DRC) for the project “Promotion of Sustainable Food Security.” This ambitious project, which has been operational in the DRC since 2022, aims to stimulate the development of a sustainable agro-industrial sector that contributes to economic diversification, food and nutritional security, employment, and livelihood improvements. To date in the DRC, Equity BCDC is enabling USD $10 million of loans into local value chain businesses (agri-business), including smallholder farmers, cooperatives, and food processors – receiving technical assistance and concessional financing through Equity.
Invited by WFP’s Executive Director and His Excellency, Ambassador Youssef Balla, Permanent Representative of the Kingdom of Morocco and current President of WFP’s Executive Board, to speak to the Annual Session of the WFP Executive Board, Dr. James Mwangi, Group CEO of Equity Group Holdings outlined the way in which the private sector, partnering with organizations such as the WFP, could play a critical role in transitioning food crises towards resilient food systems not just in Africa but globally. The address was the first time a CEO from the Global South was invited to speak to the WFP Executive Board.
A New Model of Private Sector Engagement
Signed in Rome by Dr. James Mwangi, CEO of Equity Group Holdings, and Cindy McCain, Executive Director of WFP, this agreement represents a pioneering approach to private sector engagement. By combining WFP’s extensive field presence with Equity’s financial services, the partnership aims to support marginalized communities where traditional financing is limited.
Commenting on the need to work with the private sector to support global food security as the world strives to reach zero hunger, WFP’s Executive Director, Cindy McCain said, “This is a powerful example of how innovative partnerships can address the root causes of hunger. By empowering farmers with the tools and resources they need to thrive, we can create a ripple effect of prosperity that strengthens long-term food security for the whole community.”
Empowering Farmers for Greater Impact
Dr. Mwangi emphasized the critical role of small-scale farmers, who make up 70% of the world’s farms and are vital to global food supply. The partnership will enhance productivity, integrate farmers into value chains, and improve livelihoods, all while contributing to global food security. Additionally, the initiative addresses the challenges posed by climate change, committing to allocate 30% of Equity’s loan portfolio to farmers by 2030.
Addressing the Executive Board, Dr. Mwangi reflected on the work of Equity over its 40-year history to support lives and livelihoods of the African people by reconfirming that, “At Equity we have always understood that small-scale farmers underpin the food supply in Africa and around the world. The majority of the 600 million farms in the world, 70%, are small holder, which means farms of less than 1 hectare. Often this is only subsistence farming for family eating. We want to work with partners like WFP to scale outputs and access to finance to facilitate investments in agricultural activities to support farmers to enhance productivity, integrate into value chains, and ultimately improve their livelihoods while contributing to food security, sustainably. Additionally, the Group developed the `Africa Recovery and Resilience Plan’ which is committed to growing our support of access to finance for farmers, who are also dealing with the scourge of climate change, to 30% of our loan book regionally by 2030.”
Building Resilient Food Systems
Cindy McCain highlighted the importance of innovative partnerships in addressing hunger and empowering farmers. The collaboration will focus on climate-resilient crop management, regenerative agriculture, and financial education, providing farmers with the tools and resources needed to thrive.
Leveraging Technology and Partnerships
Equity Group’s partnerships with technology giants like Hewlett Packard, Microsoft, and the Bill and Melinda Gates Foundation will support small-scale farmers in adopting state-of-the-art agricultural solutions. Furthermore, Equity’s involvement in initiatives like the MADE Alliance and the Young Africa Works Program underscores its commitment to supporting agricultural SMEs and expanding digital access for farmers.
Dr. Mwangi concluded by saying that, “The food and agriculture pillar of the Equity Group Foundation has positively impacted the lives and livelihoods of 3.8M farmers, with 310,000 being small and medium sized farmers. This is work that we are fully committed to scaling for Africa and for all the world. The Covid-19 pandemic made it very clear that we must diversify the sources of food in the world not just for nutrition but also for job creation. And we must find ways to include the least vulnerable into the scaling up of agriculture production, including refugees.”
Equity Group Foundation’s Impact
Over the years, Equity Group Foundation has positively impacted the lives of millions of farmers through its Food and Agriculture pillar. With a mission to transform 100 million lives by 2030, the Foundation’s programs focus on education, health, financial inclusion, and enterprise development, leveraging technology and innovation to drive socio-economic growth.
