Buenos Aires, June 23, 2021 — The International Finance Corporation (IFC), a member of the World Bank Group, announced a new loan of up to $20 million to Agrofértil, a leading agribusiness company in Paraguay and an IFC client since 2011. The loan will consist of a working capital facility, annually renewable for a period of up to five years, that will allow the company to continue supporting the growth of small and medium-sized farmers. Likewise, the investment will contribute to the implementation of measures that promote equal opportunities between women and men, the strengthening of sustainable business practices, and the acceleration of the post-pandemic recovery of the South American country.
The IFC investment will support Agrofértil to continue providing financing and technical support to its network of agricultural producers – 71 percent of which are small and medium-sized farmers with less than 500 hectares of land – so they can cover their pre-harvest financing needs and face the economic impacts caused by the COVID-19 pandemic. Additionally, with IFC's support, Agrofértil will carry out the certification of Economic Dividends for Gender Equality (EDGE), a global assessment methodology and a business certification standard for gender equality.
"We are pleased to strengthen our relationship with a high-impact and strategic client such as Agrofértil. The EDGE certification for gender equality demonstrates our clients' commitment to sustainability," said David Tinel, IFC's Regional Manager for the Southern Cone. "With the pandemic still strongly impacting the region, this new effort will enable Paraguayan farmers to continue their operations and jobs."
Agrofértil is a key player in a country where agricultural commodities and products account for about 70 percent of all exports, according to figures from the Central Bank of Paraguay. Agrofértil is market leader in the agricultural inputs' distribution segment in Paraguay, with an estimated market share of 21 percent. The company also originates around 10 percent of all the grains produced in the country.
IFC's strategy in Paraguay seeks to strengthen the country's competitiveness by providing financial products and advisory services in key economic sectors, focusing on three pillars: improving physical and digital connectivity to boost export-led growth and economic diversification; managing natural capital to integrate the agricultural and beef sectors into sustainable value chains; and increasing access to finance for micro, small and medium enterprises to support the creation of more and better jobs.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About Agrofértil
Agrofertil, founded in 1993, is Paraguay's leading agricultural input distributor. The company provides its products and services to more than 2200 clients, including farmers, cooperatives and small distributors. The company operates in the market by offering products such as crop protection products, fertilizers and seeds; and also by supporting its clients with pre-harvest financing, technical support, and grain commercialization and distribution services. For more information, visit www.agrofertil.com.py.
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