World Bank and Githunguri Dairy Sacco Partner to Boost Dairy Sector
The Githunguri Dairy and Community (GDC) Sacco has entered into a partnership with the World Bank to provide a Sh500 million credit facility aimed at enhancing the dairy sector. This initiative will allow dairy farmers and small-scale traders to access affordable loans through mobile platforms, enabling them to purchase modern dairy equipment, upgrade cowsheds, and buy animal feeds.
According to Charles Kioko, the CEO of GDC, the funding marks a significant shift in accessibility to finance for ordinary farmers and small traders. Kioko stated, "This funding is a game changer for our members. Through digital loans, farmers and small-scale entrepreneurs will be able to invest in better practices and grow their businesses."
The financing was facilitated through a collaboration with AVLC, a global consultancy firm, which played a key role in helping GDC secure the World Bank's Safer Fund. This fund is designed to strengthen small businesses and rural enterprises in their post-pandemic recovery efforts. The formal agreement was signed on Wednesday, marking the culmination of over a year of collaboration between GDC and AVLC.
The Sacco plans to distribute the funds digitally, offering short-term loans with terms ranging from one to six months. This approach aims to simplify and expedite access to credit for farmers and small entrepreneurs. Andrew Kanyutu, AVLC's CEO, emphasized the importance of such collaborations, noting, "This collaboration shows that local cooperatives can connect with global institutions to bring real transformation to farmers and small traders in rural areas."
The impact of the Sh500 million digital facility will be monitored annually, assessing its benefits to the Sacco's 38,000 members, primarily comprised of dairy farmers and small business owners. The World Bank's Safer Fund, which supports MSMEs in recovering from COVID-19 disruptions, underscores the significance of this initiative in fortifying business resilience.
