Last updated October 17, 2012

Partner Description:

Africa Agricultural Development Company (AgDevCo) is a nonprofit venture capital organization devoted to creating successful agribusinesses in low-income countries. By investing in agribusinesses, AgDevCo enables them to grow large enough to attract other private investments from domestic and overseas organizations.

By taking a hands-on development role – including identifying projects, responsibly securing access to land, organizing smallholder farmers and linking them to markets – AgDevCo removes many of the front-end development costs and risks that deter private investment in African agriculture. After identifying promising agriculture projects, AgDevCo then provides technical assistance and raises third-party capital from Development Finance Institutions (DFIs) and private investors to finance both small- and large-scale development costs.

Agriculture is one of Africa’s best routes for boosting economic growth and reducing poverty, as large areas of the continent have a suitable climate, abundant land and access to major water resources. Mozambique is considered one of the countries in sub-Saharan Africa that has tremendous agricultural potential.

A unique  lending approach

Through one of its main projects, AgDevCo aims to provide finance and extension services to identify, educate and ultimately help leading agricultural students graduate to commercially sustainable farmers. The organization is currently using a business-driven model to give local students the opportunity to prove they have the motivation, skills and capacity to farm on a commercial scale. Their target clients are male and female agricultural students in the Chimoio region of Mozambique who enrolled in agriculture courses to pursue careers in this area.        

The funds from Kiva lenders will be used to establish the first small plots for these farmers. Once they achieve success on the smaller plots, these entrepreneurs can grow their plot size through additional funding and eventually lease and manage large-scale blocks, generating even more income for themselves and their families.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Nov 30, 2012 Oct 12, 2005
Total Loans $18,475 $585,001,050
Amount of raised Inactive loans $0 $522,900
Number of raised Inactive loans 0 488
Amount of Paying Back Loans $0 $118,514,675
Number of Paying Back Loans 0 125,144
Amount of Ended Loans $18,475 $465,963,475
Number of Ended Loans 5 592,680
Delinquency Rate 0.00% 3.46%
Amount in Arrears $0 $2,674,338
Outstanding Portfolio $0 $77,270,318
Number of loanDelinquent 0 10,530
Default Rate 0.00% 1.15%
Amount of Ended Loans Defaulted $0 $5,337,117
Amount of Ended Loans $18,475 $465,963,475
Number of Ended Loans Defaulted 0 16,805
Currency Exchange Loss Rate 0.00% 0.08%
Amount of Currency Exchange Loss $0 $480,684
Refund Rate 0.00% 0.77%
Amount of Refunded Loans $0 $4,494,250
Number of Refunded Loans 0 5,038

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 0.00% 74.17%
Average Loan Size $3,695 $418
Average Individual Loan Size $3,695 $656
Average Group Loan Size $0 $1,827
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $1,389 $3,432
Average Loan Size / GDP per capita (PPP) 266.02% 12.19%
Average Time to Fund a Loan 13.92 days 5.57 days
Average Dollars Raised Per Day Per Loan $265.45 $75.16
  Average Loan Term 12 months 10.3 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 5 292,205
  Journaling Rate 100.00% 42.36%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.20 1.90

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 14% APR 68.00% PY 33.64% PY
  Profitability (return on assets) N/A 2.1% -1.40%
  Average Loan Size (% of per capita income) N/A 86.00% 41.35%

Country Fast Facts

Field Partner Staff

James Cairns
Daniel Hulls
Chris Isaac
Ameer Kotecha
Roseanne Whalley