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Partner Description:

Babban Gona Farmer Organization is an agricultural franchise, developed by the impact investing firm Doreo Partners, which has a proven track record of investing in profitable, early stage businesses that improve the livelihoods of Nigerian smallholder farmers.

Babban Gona inspires and enables hardworking smallholder farmers in northern Nigeria to reach their full potential by providing a private sector channel for enhanced agricultural technologies and end-to-end services that optimize yields and labor productivity, while simultaneously improving market access.
With a commitment to lift 1 million smallholder farmers out of poverty by 2025, Babban Gona targets male and female smallholder farmers who typically have agricultural plots between 1 and 4 hectares in size. Babban Gona operates in the northern Nigerian state of Kaduna, which has one of the most favorable climates for agriculture in the country yet has one of the highest levels of poverty.
A Unique Lending Approach:
The organization operates as a franchise model: Babban Gona is the franchisor providing services to franchise farmer groups made up of smallholder farmer members. The organization offers each group four types of services:
  1. Financial Credit
  2. Development and training – including training on agronomy, financial literacy, business skills and leadership training
  3. Input services -  agro inputs like seeds and fertilizers on credit
  4. Output services - post-harvest marketing services
These services enable smallholder farmers to produce high-quality maize at 3.5 times the yield of the average Nigerian farmer. Farmers also receive high-quality, low-cost inputs and mechanization services on credit to increase productivity and crop yields.
Kiva loans are used to help Babban Gona expand its services to more rural areas in Northern Nigeria.
Babban Gona is continuously able to attract hardworking smallholder farmers by working with its smallholder farmers to increase both their yields and incomes.  
At harvest, Babban Gona farmers have access to Babban Gona warehouse facilities where they are able to deposit their grains. Babban Gona smallholder farmers do not sell their maize to Babban Gona, instead, the organization markets it on their behalf ensuring the reduction of post-harvest losses and farmers’ access to premium markets.
To enable farmers to meet their short-term cash needs, Babban Gona provides loans in the form of a “harvest advance.” This flexible capital enables the organization’s members to meet their working capital requirements and obtain inputs such as fertilizer and seeds without worrying about repaying immediately.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 11, 2013 Oct 12, 2005
Total Loans $1,558,475 $974,903,975
Amount of raised Inactive loans $0 $446,850
Number of raised Inactive loans 0 211
Amount of Paying Back Loans $564,900 $147,400,875
Number of Paying Back Loans 2,549 183,981
Amount of Ended Loans $993,575 $827,056,250
Number of Ended Loans 6,371 1,039,701
Delinquency Rate 0.00% 8.21%
Amount in Arrears $0 $7,880,852
Outstanding Portfolio $564,900 $95,953,362
Number of Loans Delinquent 0 20,164
Default Rate 0.00% 1.39%
Amount of Ended Loans Defaulted $0 $11,517,038
Number of Ended Loans Defaulted 0 33,034
Currency Exchange Loss Rate 9.84% 0.45%
Amount of Currency Exchange Loss $153,413 $4,428,499
Refund Rate 0.39% 0.61%
Amount of Refunded Loans $6,125 $5,967,400
Number of Refunded Loans 16 5,984

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 11.97% 75.40%
Average Loan Size $175 $399
Average Individual Loan Size $175 $629
Average Group Loan Size $0 $1,760
Average number of borrowers per group 0 7.7
Average GDP per capita (PPP) in local country $6,100 $5,874
Average Loan Size / GDP per capita (PPP) 2.87% 6.79%
Average Time to Fund a Loan 8.05 days 6.9 days
Average Dollars Raised Per Day Per Loan $21.74 $57.76
  Average Loan Term 15.57 months 11.13 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,068 509,194
  Journaling Rate 36.70% 41.50%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.16

Borrowing Cost Comparison (based on 2015 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 18% APR 39.00% PY 26.13% PY
  Profitability (return on assets) -4.9% 2.5% -1.72%
  Average Loan Size (% of per capita income) N/A 43.00% 16.60%

Country Fast Facts

Field Partner Staff

Tola Sunmonu