The investment will expand access to financing for micro, small and medium enterprises (MSMEs) in Romania’s agricultural sector, with at least 50 percent of the funds allocated to women-owned MSMEs, addressing a critical financing gap for women farmers and agri-businesses.
As part of this financing package IFC mobilized an aggregate amount of EUR20 million under its B Loan Program, from the Amsterdam-based ILX Fund, an SDG-focused global development finance asset manager, and from German impact investor Invest in Visions.
Agriculture accounts for 5 percent of Romania’s GDP and employs 30 percent of the workforce compared to just 5 percent in the European Union (EU). Romania has the sixth-largest arable land area in the EU and ranks among the top global producers of wheat and corn. Despite its potential, the sector faces significant challenges, including structural weaknesses, low productivity, and limited access to financing—particularly for rural communities and women farmers.
„This occasion marks the introduction of an innovative syndicated product that not only provides essential funding but also aids in diversifying our lender base,” said Serhan Hacisuleyman, CEO of Agricover Credit.
Global geopolitical tensions have further disrupted regional agricultural markets, causing price volatility for inputs and products, and increasing lenders’ risk aversion. The project will enable Agricover Credit, a longstanding IFC partner, to provide much-needed financing to farmers, including long-term loans essential for sustaining operations during economic uncertainty.
“This partnership will empower farmers to invest in essential equipment and working capital, helping them remain resilient in the face of global challenges,” said Etleva Koka, IFC`s Manager for Financial Institutions in Europe.
The project is supported by the Women Entrepreneurs Opportunity Facility (WEOF) through a performance-based incentive that will promote lending to women-owned SMEs. The WEOF, launched by IFC through its Banking on Women Program, and Goldman Sachs’ 10,000 Women initiative, is a first-of-its-kind facility dedicated to expanding access to capital for women entrepreneurs globally.
(English version by Catalina Apostoiu)