The 34th Midi de la microfinance, held on Wednesday 9 March at the Banque de Luxembourg, discussed private funds and public support for sustainable agriculture with two leading experts on agricultural finance on the panel.
Massimo Pera from the United Nations Food and Agriculture Organization (FAO) and Matthew Sparkes who represented Root Capital (one of the largest investment funds specialising in sustainable agriculture) made up two thirds of Wednesdays panel; they were joined by Gilles Franck, Director at ADA.
Three quarters of the world’s poor live in rural areas of developing countries. This fact emphasises the need for the generation of profitable and fair business for the benefit of these people. The risks included in the financing of agriculture, however, keep many potential investors at bay. Natural disasters and the climate are two of these factors.
"The problem is not the funding, but rather that the orientation of these funds to the rural sector," said Marc Bichler, Ambassador-at-Large for Climate Change at Ministry of Foreign Affairs, Luxembourg.
Massimo Pera stressed the importance for support from governments and the assistance that could be provided by experts, whilst Matthew Sparkes from Root Capital spoke of how it was indeed “possible to invest in it while having a return on investment.”
The combined efforts of the ADA and FAO in training programmes for microfinance institutions operating in rural areas were also mentioned along with how the development of sustainable agriculture requires funding, public intervention and technical support, the latter being one of ADA’s main missions.
The conclusion for the 34th Midi de la microfinance was summed up by Ambassador Marc Bichler: the investment made in sustainable agriculture can be profitable indeed, but the question of funding remains key.
Photo by ©ADA/ Luc Deflorenne. (L-R) On Stage: Massimo Pera (FAO), Gille Franck (Director at ADA and the LMDF) and Matthew Sparkes (Root Capital)
