One Acre Fund's Andrew Youn on financing small scale farmers

One Acre Fund, a non-profit organization that focuses on providing asset-based financing and agriculture training services to smallholder farmers in East Africa, is making a significant impact in reducing hunger and poverty in the region. CNBC Africa recently spoke with One Acre Fund Founder, Andrew Youn, who shed light on the organization's unique approach to empowering rural farmers. Youn emphasized that the majority of the world's poor are farmers, who are also the hardest working individuals on the planet. To tackle poverty at its root, One Acre Fund equips farmers with essential tools and training to help them lift themselves out of poverty. The organization operates much like a private company, with farmers paying for the services provided to them. One of the key challenges that One Acre Fund faces is ensuring that farmers in rural and often inaccessible areas have access to financial services. To address this, the organization strategically locates its services within walking distance of villages, making it easier for farmers to engage with the program. Despite the misperception that rural farmers are not bankable, Youn emphasized that they are hardworking and good investments. In terms of funding, One Acre Fund charges interest rates that align with the microfinance markets in the countries where they operate. With an impressive 99.5% on-time repayment rate, the organization has demonstrated the viability of its model. By providing access to finance, One Acre Fund enables farmers to improve their livelihoods and create opportunities for themselves and their families. One notable aspect of One Acre Fund's work is the focus on supporting women farmers. Youn highlighted that most of the farmers they work with are women and emphasized their inspiring dedication to their families' success. Women, who are proven to be excellent payers, play a crucial role in the success of microfinance initiatives. When it comes to the impact of One Acre Fund's services, Youn shared that the organization aims to help farmers achieve their goals, whether it's supporting their children's education or scaling up their farming operations into commercial enterprises. Many farmers who have received support from One Acre Fund eventually transition to formal banking services as their businesses grow. As for aspiring farmers who are interested in accessing One Acre Fund's financial services, the process is straightforward. With a presence in over 2,000 rural communities, farmers can attend meetings and express their interest in participating in the program. Additionally, One Acre Fund has an online presence through its website, www.oneacrefund.org, where individuals can learn more about the organization and its services. Overall, One Acre Fund's innovative business model is not only providing financial support to smallholder farmers but also empowering them to transform their lives and communities. By combining access to finance with agriculture training, the organization is creating a sustainable pathway out of poverty for rural farmers in East Africa.