SOMBREIRO KAPITAL (SK) PROJECT

PROJECT OVERVIEW:

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.

OUR AIM:

  • The intervention model is aimed at encouraging sustainable lending to small-scale farmers without recourse to collateral in the long term.

OUR APPROACH:

To implement this intervention model, PIND Foundation motions:

  • Collaborations with licensed financial institutions, agricultural service providers, and other non–bank institutions with intersecting objectives.
  • Formalization of partnership platforms to facilitate loans to smallholder farmers through a licensed commercial banks.
  • Building of the efficiency of smallholder farmers, and increase the initiative’s impact on its target market.

OUR RESULTS

NGN 30.1 million

in loans facilitated. 195 farmers/MSMEs supported with loans by Sombreiro Kapital (SK) to receive loans from partner banks. 15 fish processors in GMOU communities and 180 smallholder cocoa farmers in Ondo State..

NGN 40 million

in investments leveraged. To ensure smallholder farmers had uninterrupted access to low-cost finance, SK partnered with Unity Bank Plc while sustaining its partnership with Sterling Bank.
MORE RESULTS
PROJECT UPDATES
TESTIMONIALS

BUSINESS MADE GOOD BY NISRAL LOAN!

“My name is Peter Wealth. I am from Akwa Ibom State, married with four (4) children. I am into movie production, which has been a long-time passion since I was 16. I heard about PIND for the first time from Filmatura Film Production (a PIND-trained BSP (business service provider)], who did several trainings for a group of us on movie making, music video, photography, and cinematography. After the training, Filmatura supported us to apply for the NISRAL MFB loan, which is CNB’s empowerment program. In 2019, we received a loan of NGN 4.5 million to start a film production business, rent office space, and buy equipment. We had two (2) clients in our first month, and after, then, we had over eight (8) clients. As the business got moving, we upgraded to two (2) offices and added two (2) extra staff to make a total of four (4). It became easier to take care of my family as income was good, adding about 20 percent to what we started with. It was easier to carry both the home front and the business, which was a relief to the family. Business was good and, of course, the payment of the loan was easier for us to do without stress”.

Mrs Onome Ezomo

“Dorbudee (PIND-supported business service provider) guided us through the loan application process, you know… so through him, I was able to get funds from Grofin. We are definitely not where we were before we got the funds. They gave us funds for two delivery vans, and two tricycles, which are also mini delivery vans and then trading capital. The vans made it a lot easier for us to get our goods across to our customers. We moved from a small place to a very big place, a bigger warehouse whose storage capacity is like 10 times where we were before. Our staff strength has increased by about 30% and we can say we make about 40% increase in sales all through the year. My lifestyle has changed positively, I’m not where I was before, I’ve moved up.”

Angaye Doubara Dorothy

“PIND helped me to access a financial loan through the CBN (Central Bank of Nigeria) Agric Small and Medium Enterprise Scheme (AGSMEIS)… I needed to get some equipment. I was guided on how to do my business plan…luckily, I was chosen as one of the people who benefitted first here in Bayelsa. I have been credited, I have my equipment, I have my working capital and it’s helping me to grow my business better.”

Mrs Esonde Bakare

“A friend informed me about access to loan for growing businesses, and that, to access the funds; I do not need collateral but business documentation. It was at that point I was referred to Ayodele Bamidele, a PIND-trained business service provider (BSP) who guided me throughout the entire process, until I got funded.”

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