Some producer organisations in the South make impressive social and economic progress. Increasingly, these farmers no longer see themselves as poor – trying to survive – but as ambitious, rural entrepreneurs. They have become catalysts for development. But as these organisations grow and expand, they face a huge obstacle: lack of access to capital. They have outgrown the microfinance market, but are still too small and fragile to be eligible for the traditional investment market or even for most social investors. They are confronted with the so called missing middle.
Kampani stands out from other social investors thanks to an audacious combination of strategic choices:
– Investing directly and strengthening the balance sheet of the investee through the use of equity or quasi-equity
– A long investment horizon of up to 10 years
– Only in the agro-food value chain
– Active involvement in the governance of the investee
– Small investment amounts (100k to 500k euros)
This pioneering combination of strategic choices constitutes Kampani’s unique selling proposition. Having built a rather exceptional ecosystem via its shareholders – comprising most of the relevant players in Belgium – and a limited number of close partners, Kampani is convinced it can face the challenges
inherent to this approach. For instance, Kampani sources its deals exclusively via this network. This generates significant cost savings and accelerates the trust building between Kampani and the investee.
Some producer organisations in the South make impressive social and economic progress. Increasingly, these farmers no longer see themselves as poor – trying to survive – but as ambitious, rural entrepreneurs. They have become catalysts for…