Standard Bank scooped the Development Finance Initiative of the year award at this year’s Africa Investor Agribusiness Awards.

The bank won the award for it's groundbreaking $100-million Agricultural Guarantee Fund Scheme (AGFS) that has improved access to financing for small-scale farmers in Africa.

 ‘It is not very often that we can be part of initiatives that make a difference to the lives of people on many levels. We are fortunate here to see an impact that permeates across many spheres, from sustainability, economic development and growth, to job creation and poverty alleviation,’ says Clive Tasker, chief executive of Standard Bank Africa.

The AGFS, started in 2009, is a partnership between Standard Bank, the Alliance for a Green Revolution in Africa, OPEC Fund for International Development, Kilimo Trust, Millennium Challenge Account Mozambique, Ministry of Agriculture Mozambique, and the Millennium Development Authority.

The single largest facility by a bank that targets small-scale farmers, the scheme aims to reach about 750,000 farmers and small and medium-sized enterprises in Ghana, Mozambique, Tanzania and Uganda over a three year period. Standard Bank provides the financing while other partners offer guarantee against risks.

Financial institutions have been reluctant to lend to this segment of the agriculture sector for a number of reasons, including lack of collateral and risks associated with the environment.