The benefits to small businesses cannot be underestimated. SMEs are able to increase direct employment, boost turnover and assets, improve working conditions, and build long-term relationships with their SHF partners. Improving and facilitating partnerships between SMEs and SHFs through innovative contract farming improves agricultural practices, generates additional income for all parties, and fosters sustainable development throughout the region.

Our activities also have an overall positive impact on social, economic and environmental factors in the region. In particular, the Fund will promote proper contract farming and good agricultural practices (e.g. lower use of water and fertiliser, minimum tillage, organic practices) through the supported SMEs. The Fund will also promote fair treatment of the SHFs by the SMEs and monitor payments to SHFs as well as their percentage of the end market price.

The Fund measures and monitors its social impact based on an impact assessment tool developed by the Finance Alliance for Sustainable Trade (FAST). A selection of social, economic and environmental indicators relevant and applicable in the specific context of Tanzania has been used to adapt the Shared Impact and Measurement Toolbox (SIAMT, resulting in a comprehensive Fund Social Economic and Environmental Checklist (SEEC). The application of the checklist results in comprehensive case–by-case baseline data. In consultation with the SMEs, benchmarks are set that are monitored throughout the loan.