The Agriculture Investment & Liquidity Facility (AGIL) is Africa's first climate-linked credit facility that combines climate-smart agriculture and blended finance to fund small and medium producers and Agri-SMEs in East Africa. The climate-smart due diligence module is unique globally and can represent a driver of change to unlock commercial bank lending across the region, now at less than 5% of total loans. Tiserin Capital has partnered with USAID's Feed the Future Kenya Investment Mechanism (USAID-KIM) to develop and launch AGIL.
Tiserin Capital has also partnered with the Center for International Tropical Agriculture (CIAT) and the International Water Management Institute (IWMI) to develop the climate-linked appraisal and portfolio management module. The module will leverage technologies such as Normalized Difference Vegetation Index (NDVI) and Normalized Difference Water Index (NDWI) tools, now more effective and less expensive, and micro weather stations to assess climate impact on small and medium producers and Agri-SMEs.
How it works
AGIL lends 1-5-year loans to producers and Agri-SMEs across the agricultural value chain for the following purposes:
strengthen cash flows and balance sheets
invest in climate change adaptation and mitigation
lower energy costs - implement solar and wind
invest in pack-houses, cold storage, dryers, etc.
AGIL is committed to protecting and creating jobs, especially for women, youth, and rural workers. It is committed to promoting gender inclusivity within its team and projects and is aligned to the DFC's 2X Initiative. AGIL is keen to reduce lifetime GHC emissions and increase energy and water efficiency within it projects. It will ensure that all projects are aligned to IFC's Environmental & Social standards.