Established as a corporate enterprise to facilitate access to finance innovations for smallholder farmers in the Niger Delta, PIND has focused effort in 2020 to test and evidence the viability of the Sombreiro Kapital’s proposed model and products in the pilot sectors and States: Aquaculture, Palm Oil Processing and Poultry in Bayelsa, Delta, and Ondo States.

Specifically, the initiative will be addressing the identified constraints through the capacity building of smallholder farmers and agricultural risk sharing with commercial banks and other partner institutions. For the first six months, July to December 2020, Sombreiro Kapital will be testing and evidencing the viability of the proposed model and products in the pilot sectors and States: Aquaculture, Palm Oil Processing and Poultry in Bayelsa, Delta, and Ondo States.

At Sombreiro Kapital, Loan appraisal is being reviewed by the credit review team, after which recommended farmers will benefit from one of the following financial products tailored to meet their farming cycles and needs:

-Working Capital Facility: To finance procurement of inputs, business expansion, salary payment, and other recurrent expenditure. The product would be provided by financial institutions at 9% interest per annum.

– Input Finance Facility: Provided by input companies to enable farmers’ access to input/raw materials on a credit basis.

– Asset Finance Facility: Designed to procure farm assets needed for harvesting and processing, especially in the palm oil processing value chain.