The landscape of agricultural investment is rapidly changing in Benin, notably driven by an innovative digital tool developed by the FAO: RuralInvest. More than just software, RuralInvest is proving to be a true catalyst, transforming mindsets and opening up unprecedented financial prospects for farmers and rural entrepreneurs. An FAO survey highlights the concrete impact of this tool on lives like that of Mireille, a woman with a unique journey who has made the fight against child malnutrition her mission.
From pediatric emergency to nutritional entrepreneurship
A trained nurse, Mireille was deeply affected by child malnutrition during her experiences in pediatrics. This awareness led her to reorient herself towards public health and child nutrition. Based in Cotonou, she founded “L’Oasis des Enfants” (The Children’s Oasis), an agri-food company dedicated to the production of enriched flour to combat malnutrition. But her ambition doesn’t stop there: she also wants to make her company a place for information and workshops for pregnant women and young mothers.To realize her projects, Mireille collaborated with Hervé Kassa, a facilitator trained in the use of RuralInvest by the FAO. This tool, designed by the FAO Investment Centre, goes far beyond simple business plan creation software. It is a comprehensive methodology, encompassing training tools and a support network to connect actors in agri-food systems.
RuralInvest in Benin: a driver of access to finance
Integrated into the Agricultural Development and Market Access Support Project (PADAAM), RuralInvest plays an increasing role in facilitating access to finance for agricultural investments. The results speak for themselves: thanks to structured business plans based on concrete data, farmers and entrepreneurs like Mireille are managing to obtain loans from banks and local financial institutions.The PADAAM project, the result of a partnership between the FAO’s technical expertise and the financial support of the International Fund for Agricultural Development (IFAD), has already enabled the training of over 300 Beninese experts in RuralInvest. These facilitators have subsequently supported more than 22,000 farmers and entrepreneurs in developing viable business plans, paving the way for essential financing.
Concrete success stories
Mireille’s story is a striking illustration of this. Thanks to Hervé’s support and the submission of her project via RuralInvest to the PADAAM arbitration committee, she obtained initial funding that allows her to develop her production and launch new products. Her ambition is to recruit other women, especially young mothers, to boost the local rural economy.Since the integration of RuralInvest into PADAAM in 2020, nearly 600 business plans have been validated, and over 78% have already received funding from the project and national financial institutions. Cyrille Hounsou, General Manager of a partner microcredit institution, emphasizes the crucial importance of access to credit for rural development: “Without financial support, the situation is complicated. That is why the issue of financing is the real solution.”
Breaking down barriers of mistrust: RuralInvest redefines agricultural risk
RuralInvest does not simply facilitate the creation of business plans; it also helps to change investors’ perceptions of agriculture, often considered a high-risk activity. Olivier Tonato, a specialist in cereal agri-food companies for the PADAAM project, explains that the tool helps to “restore confidence in banks and microcredit institutions and ensure that they no longer associate the agricultural sector with the notion of risk.”Thanks to more reliable data and solid business plans, financial institutions are more inclined to collaborate with small agricultural entrepreneurs and grant them the credit necessary for their growth. RuralInvest thus facilitates communication between farmers and financial institutions, creating a common language and a better understanding of the specific needs of the sector.
Investing in the future: fruitful partnerships for sustainable growth
The FAO survey also highlights other concrete examples of how RuralInvest fosters fruitful partnerships within the Beninese agricultural sector. The connection between the Sedjlo cooperative, a cassava producer, and the processing company Alitech, thanks to PADAAM and RuralInvest, is one such illustration. The tool has ensured the alignment of the business plans of both entities, creating a virtuous cycle of growth and development.For Eloi Hounkponnou, an organic rice producer, RuralInvest not only facilitated obtaining funding to acquire essential equipment but also increased the visibility and credibility of his company, Viva Matekpo. His ambition is now to become the leading distributor of organic rice in the region, a vision made possible thanks to the project’s support and the power of the digital tool.Isaias Angue Obama, FAO Representative in Benin, emphasizes the transformative role of RuralInvest: “This type of intervention is necessary because a business plan and a request for financial support need to be developed. This is very important because the actors must achieve financial independence.”
A constantly evolving tool serving global agricultural development
Created over 20 years ago, RuralInvest underwent a significant update in 2022, making it even more accessible and user-friendly. Today used in 15 countries, the tool has enabled the training of 1,500 people and generated over $60 million in funding through the development of more than 2,000 business plans.The story of Benin and the impact of RuralInvest is an inspiring example of how intelligent digital tools, combined with technical expertise and strong partnerships, can transform lives and build a more prosperous future for rural communities. Investing in such initiatives is an essential step towards more sustainable agriculture and strengthened food security worldwide.
