Omia and SokoFresh each get $500,000 loan from Bayer Foundation and UNCDF facility

The Bayer Foundation and the UN Capital Development Fund announced on 21 April the first investments of their Food Systems Innovation Finance Facility: two local currency loans of $500,000 each to Omia Agribusiness Development Group in Uganda and SokoFresh in Kenya. The UN Capital Development Fund lends and manages the facility, while Bayer Foundation supplies philanthropic capital. These are loans, not an equity round.

Omia in Northern Uganda

Omia provides agricultural inputs, extension services and market access to smallholder farmers in Northern Uganda. It was founded and is led by Iganachi Razaki Omia. The company serves more than 90,000 farmers and expects to reach over 75,000 more, including 30,000 women and 20,000 refugees. Its loan includes a performance based incentive tied to reaching women and refugee farmers.

SokoFresh in Kenya

SokoFresh tackles post-harvest losses and limited market access through solar-powered cold storage and market links for fresh produce and cereals. Denis Karema is its CEO. The four-year loan will fund expansion of cold storage and market access. The company expects to serve more than 5,000 smallholder farmers a year and projects a 10% rise in their incomes.

What the funders said

Chitkala Kalidas, Executive Director of Bayer Foundation, said philanthropic capital "can be used catalytically to strengthen food systems."

At a glance

• Companies: Omia Agribusiness and SokoFresh
• Raised: $500,000 each
• Round: Local currency loans
• Lenders: Bayer Foundation, UN Capital Development Fund
• Markets: Northern Uganda, Kenya
• Key figure: More than 90,000 farmers served by Omia