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Banking on Tea in Africa

Banking on Tea

in Africa

Black tea is Kenya’s largest agricultural export, but this vital industry is vulnerable to the effects of deforestation and climate change. Our investment in Family Bank Kenya supports small-holder tea producers introducing sustainable practices into their operations. 

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Investment

$15M

January 2022

$5M

December 2023

Protecting economic growth

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Kenya is the largest black tea exporter in the world.

The planet’s most popular drink generates significant government revenue, is a leading source of currency exchange and supports over 600,000 rural smallholders.

 

But Kenyan tea farms are at risk. As well as being exposed to volatile climate conditions, they are subject to unsustainable practices, including the expansion of production to the detriment of nearby forests and water-basins, and the excessive use of pesticides.  

 

Conserving biodiversity, adapting to the effects of climate change and using natural resources more sustainably are key to the industry’s survival and future.  

6,600

 Hectares under sustainable management  

8,000

Indirect jobs supported  

9,700

Smallholder farmers supported  

Working with Family Bank

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Since 2022, our $20 million investment in Family Bank Kenya has contributed to the sustainable management of nearly 6,600 hectares. This has supported 8,000 indirect jobs and 9,700 smallholder farmers. In addition, financing sustainable measures delivers additional environmental benefits, including increased CO2 storage and water savings.

 

Our Advisory & Capacity Building team also provided sustainable-lending training to credit and loan officers. As a result, 70 branches consistently originate agri-loans, up from 20 prior to our investment. This significantly expands access to finance in rural areas. Beyond tea smallholders, the bank is stimulating investment and growth in dairy, cereals, and horticulture. The result is stronger value-chains and a more diversified agriculture base across the country.  

Future-fit industry

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Our financing and support give Kenyan tea producers the capital and know-how they need to survive and thrive.

 

Farmers are adopting sustainable practices that will help maintain their businesses for generations to come. They are protecting their crops from the effects of extreme winds by combining tea production with native trees to create a natural barrier. And they have the tools they need to limit their use of pesticides, protecting natural species and delivering a healthier product for consumers. 

 

We are ensuring this vital exporting industry continues to generate economic growth and employment across Kenya’s rural communities. 

Fund information

The funds, sub-funds and securities described herein (or in any other linked or related website) are not being offered for sale to the public in the United States of America or in any other jurisdiction in which a public offer would be prohibited by applicable law. To the extent funds, sub-funds and securities described herein (or in any other linked or related website) are being offered in these jurisdictions (some of the funds, sub-funds and securities may not be offered in certain jurisdictions), they will only be offered by private placement to a limited number of qualified institutional investors in accordance with the applicable laws and regulations in these jurisdictions. Offers will only be made pursuant to a private placement memorandum approved by the funds. Institutional investors in these jurisdictions that wish to learn more about the funds, sub-funds and securities should contact the persons listed below for further inquiry.

Special notice as regards the European Fund for Southeast Europe, the Green for Growth Fund and the Latin American Green Bond Fund: In respect of the United States of America, Canada, Japan or Australia or any other jurisdiction in which the distribution, offer, sale, transfer or resale would be prohibited by applicable law, no investment in notes/shares or other instruments of these funds (or their respective sub-fund(s)) can be offered or made.

All funds are managed or advised (as the case may be) by Finance in Motion Asset Management S.à r.l., a Luxembourg-based Alternative Investment Fund Manager directly supervised by the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (CSSF).

  • Finance in Motion Asset Management S.à r.l.
  • 68, Bd de la Pétrusse,
  • L-2320 Luxembourg