September 17, 2020

2SCALE launches crowdfunding platform

Animal Production Related

Staple Crops

Soy and Oil Seeds

Fresh Produce

Kenya

Mali

Nigeria

The impact of the COVID-19 pandemic on food producing Small and Medium Enterprises (SMEs) and farmer groups in sub-Saharan Africa, has been profound. Several reports show that SMEs and farmer groups are greatly affected in a variety of ways, ranging from availability of raw materials to a drop in consumer demand. Because of this, many face short-term financial constraints and are unable to neither pre-finance the purchase of goods, nor repay outstanding loans. These financial challenges might mean the end of operations for many of these vulnerable SMEs, and consequently the potential end of their involvement in the 2SCALE program.

In order to support its partners involved in agribusiness value chains, to mobilize funds from their own networks during this difficult period, 2SCALE is launching its very first crowdfunding website. This new platform, is an opportunity to support the business of Micro, Small and Medium Enterprises (MSMEs) within the various partnerships.

Crowdfunding is a way to raise funds for a business or cause, by asking a large group of people to contribute small amounts of money in support. Online crowdfunding campaigns are about mobilising your network, creating a community and gaining support for your venture. By involving family, friends and other networks, one can create a snowball effect and successfully access funding for their venture. Henk van Duijn, The 2SCALE Program Director says :

As 2SCALE we feel that it is our responsibility to support SMEs and producer organizations which we work with, through the tough times brought on by Covid-19. With channels such as this crowdfunding platform, they access more cash flow opportunities, and are able to continue to produce and supply quality food products to local, national, and regional markets, including Base of the Pyramid consumers.

For this first campaign, around ten MSMEs were selected in three of 2SCALE´s program countries, namely Kenya, Mali and Nigeria. Each company will be coached and supported by local experts to activate its own network in order to mobilize €5,000.

According to Baba Togola, 2SCALE Country Team Leader of Mali, this initiative has great potential for local partners involved in the program partnerships.

This is an opportunity to promote self-employment through support for MSMEs to acquire the means (working capital or acquisition of equipment) for the development of their business within 2SCALE partnerships

It should be remembered that this approach will especially allow companies seeking support to inform their contacts about the importance of their projects and influence to contribute to the realization of these projects.

To help our business partners to carry out their projects for sustainable and inclusive development, join us on the 2SCALE crowdfunding website to contribute.

Any company that will mobilize 50% of the targeted resources will benefit from a financial bonus of €2,000 from 2SCALE.

Remember that anything you give will be well spent.

Do you have questions or would like to know more about 2SCALE partnerships, and how you can support? Get in touch with our team via info@2scalecrowdfunding.org

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