Introduction:
The Outgrower and Value Chain Fund (OVCF) became effective in 2011. Currently the fund is in its 2nd Phase of implementation with total loan of €33.0 million provided by the Government of Germany through KfW.
The main objective of filling the gap in agricultural financing by providing medium to long-term loans to selected commercially viable value chains through 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).
Project Basic Data
|
Phase |
Duration |
Project Budget (Loans or Grants) |
|
I |
April 1 2011- September 30, 2015 |
€10M Loan, €1M Grant |
|
II |
October 1 2015- 31st March, 2017 |
€23M Loan, €1M Grant |
|
III |
Phase III, Contract and Loan Agreement for Phase III is yet to be signed |
€19.69, €2.0 M Grant |
Disbursements so far:
- Total funding for OVCF I & II - €33.00 million
- Total amount committed - €21,924,031.75
- Transfers from KfW to BoG - € 14,396,461.13
- Disbursement as at 2020 - € 11,631,022.36
Status of implementation/Achievement
Under Phases I & II, Eight (8) schemes have been financed; oil palm, rubber, cocoa, maize-poultry, cassava-gari, soya-sorghum-maize, pineapple and rice. The pineapple and rice schemes have been stalled due to operational challenges. So far 4,610 farmers and 8 Technical Operators were reached and current interest rate applied by the Fund was reported to be 17.7%.
In addition, nine (9) pipeline applications estimated at € 39.7million have been received for processing and approval. These include Rice, 2 Soyabean, Orange-Fleshed Sweetpotato, Cassava Starch, Ginger, Pineapple, Avocado, Cocoa by OISL to replace existing scheme, Rubber phase II, and Cassava by in-growers for Amantin Starch Factory.