
Project start date: 1/1/2025
Africa
Farmties bridges the financing gap for African agribusinesses by providing trade-linked working capital to growth-stage SMEs, enabling them to scale, access markets, and grow sustainably.
Design & Implementation
1 - 6 months
Last update: October 05, 2023
Promising agribusinesses in Africa lack access to appropriately structured, growth-aligned capital, which limits their ability to unlock Africa’s full agricultural and trade potential. Trade is a critical growth engine for African agribusinesses, yet one of the biggest barriers they face is access to trade-linked financing. Growth-stage agricultural SMEs—those aggregating smallholder produce, processing raw materials, and exporting finished goods—often have confirmed purchase orders and proven markets but cannot secure the capital needed to execute on them. Without working capital to cover input costs, logistics, quality assurance, and shipping, these businesses are unable to deliver at scale, forfeiting valuable opportunities in regional and international markets.
Conventional financing channels are poorly suited to the realities of agribusiness trade. Banks require hard collateral and lengthy credit histories, while many SMEs operate in asset-light models and rely on forward contracts rather than traditional guarantees. Export-ready businesses find themselves in a paradox: they have buyers waiting but lack the liquidity to meet demand. Meanwhile, global investors and lenders frequently view agriculture as too risky due to weather volatility, fragmented value chains, and uncertain repayment structures. This creates a persistent trade-financing gap that stifles Africa’s ability to fully leverage its agricultural and production potential.
The impact of this gap is significant. Without timely and structured trade finance, SMEs cannot grow their export volumes, farmers lack consistent offtake, and local economies lose out on job creation and foreign exchange earnings. The cycle reinforces dependency on raw commodity sales rather than value-added trade, keeping businesses small and limiting Africa’s participation in higher-value global markets.
What is needed are innovative trade financing solutions designed around performance and growth. Financing models that link repayment to transaction flows, integrate risk-mitigation tools, and are supported by embedded technical assistance can unlock capital for export-ready agribusinesses. By mobilizing global funds into tailored, trade-linked structures, African SMEs can scale sustainably, fulfill international contracts, and drive inclusive prosperity. Bridging this financing gap is not just about capital—it is about enabling Africa to take its rightful place in global agricultural trade.
Farmties is an emerging fund manager bridging the financing gap for African agribusinesses through innovative, trade-linked capital. We provide working capital to growth-stage agricultural SMEs, particularly those integrated across value chains, using a financing model that aligns with business performance and growth. This enables export-ready companies to meet demand, access new markets, and scale sustainably. Headquartered in Canada with active operations in Africa, Farmties mobilizes global capital to unlock the continent’s underutilized trade and production potential. Our approach combines structured finance, strong local partnerships, and embedded technical assistance to manage risk and deliver measurable impact. With a focus on inclusive growth, ethical finance, and commercially viable transactions, Farmties is creating new opportunities for investing in Africa’s agricultural future where prosperity is both shared and scalable.
By bridging the trade financing gap, growth-stage African agribusinesses will unlock the capital needed to fulfill export contracts, expand production, and strengthen value chains. Farmers gain stable markets and higher incomes, SMEs grow revenues and create jobs, and communities benefit from inclusive economic opportunities. Access to structured, trade-linked capital enables companies to scale sustainably, attract global buyers, and compete in higher-value markets. Ultimately, this drives foreign exchange earnings, strengthens food systems, and positions Africa as a reliable player in global agricultural trade.