Grassroots Business Fund: “We believe in the power of business to lift people out of poverty.”
Countries: Bolivia, Cambodia, Colombia, Ghana, Guatemala, India, Indonesia, Kenya, Peru, Tanzania, Zambia.
Sector: Financial Services
Challenge: In developing countries, small enterprises have significant potential to support jobs and economic growth but often struggle to obtain financing to expand their operations.
Solution: Grassroots Business Investors Fund, based in Washington, DC, is committed to supporting viable businesses in Africa, Asia and Latin America that offer a way for low-income farmers, artisans and others to earn income. OPIC supporting Grassroots Business Fund with a $20 million loan to enable it to provide financing to more small and medium enterprises in developing countries.
Impact: Grassroots has supported a range of small businesses with loans and technical assistance, including a small bean exporter in Kenya that purchases produce from more than 720 small local farmers, and an artisanal enterprise in India that has trained hundreds of local artisans to transition from manufacturing more contemporary designs that have helped increase their profits.
In Peru, Grassroots supports Corporation Agricola Vinasol S.A. C. (CAVSAC), an NGO that works to improve the livelihoods of smallholder farmers by advancing production techniques and connecting them to larger markets. CAVSAC’s operations are directly supporting almost 400 local farmers.
This project was profiled in 2015