WHAT WE DO
Our Services
The OVCF provides loans to commercially viable value chains. It favours and promotes the concept of Outgrower farming, based on defined tri-partite contractual relations between Outgrower associations, the Technical Operator (a company that is dedicated to provide inputs, services and technical advice to Outgrowers, as well as buying the produce from the Outgrowers), and a participating bank (Financial Operator) refinanced by OVCF which may provide loans to both OG and TO, for the latter as long as direct impact on the OG can be demonstrated.
In addition to refinancing financial operators for on lending to OGs and TOs, OVCF offers grants for studies, technical support to Outgrower and Value Chain Scheme (OVCS) stakeholders (FO, TO and OG) and overall project management to complement the Fund’s investments. To ensure optimal efficiency, sustainability and impact of OVCF, the fund strategy is to liaise and work in close synergy with specialized non-financial service providers (other relevant GoG donor funded Projects and private interventions), to ensure that OVCS stakeholders access quality and adapted technical assistance for the design of quality applications to the fund and development of sustainable OVCS, compliant with the objectives of the project.
Financing Approach
The financing model involves the outgrower (farmer groups), the off-taker (bulk buyer, processor, exporter etc) and a financial operator (e.g. banks, rural banks, S&LCs). These three parties must sign a tri-partite agreement guaranteeing that the off-taker will buy at an agreed price, the outgrower(s) will also sell at the same agreed price and that the financial operator is willing to work with both parties. Funds are channelled through the financial operators to the OGgroups and TOs.
