Rome – Privately-owned micro, small, and medium agrifood enterprises (MSMEs) in sub-Saharan Africa, North Africa, and Türkiye now have improved access to financing through TERRA, a new programme launched by Italy’s Cassa Depositi e Prestiti (CDP), the Food and Agriculture Organization of the United Nations (FAO), and the European Union. TERRA, which stands for “Transforming and Empowering Resilient and Responsible Agribusiness,” aims to overcome barriers faced by MSMEs in low- and middle-income countries, where the agrifood sector is often considered high-risk due to climate shocks and commodity price volatility. Despite these risks, agriculture, forestry, and fishing contribute significantly to regional economies, representing a major opportunity for investment.
The programme leverages a European Union guarantee of up to €109.5 million, enabling CDP to provide dedicated credit lines and guarantees to selected financial institutions and agrifood corporations in Africa and Türkiye. The FAO Investment Centre supports these efforts with technical assistance, offering advisory services, capacity development, value chain assessments, and guidance to strengthen lending practices and risk management. FAO Director-General QU Dongyu emphasized that technical expertise and knowledge act as key de-risking instruments to help financial institutions allocate capital more effectively.
CDP CEO Dario Scannapieco highlighted that TERRA combines EU funding under the EFSD+ and the Global Gateway strategy with FAO’s technical know-how to mobilize financial resources for inclusive and resilient development. The programme aims to support food security, climate adaptation, and economic empowerment by financing both short-term working capital needs and long-term investments for MSMEs and cooperatives in the agrifood sector.
By integrating credit lines, de-risking instruments, and technical assistance, TERRA enhances the ability of local financial institutions to allocate more capital to the agrifood sector, thereby fostering growth and resilience. The programme is part of a broader EU strategy to promote sustainable investments in partner countries, channelled through the European Fund for Sustainable Development Plus (EFSD+), which aims to mobilize up to €135 billion in public and private financing to achieve Sustainable Development Goals.
CDP, Italy’s National Promotional Institute, has supported the country’s industrial and infrastructural development since 1850 and now applies its financing and advisory expertise internationally. Meanwhile, the FAO Investment Centre works with countries and financial institutions worldwide to design agrifood investment strategies, enhance food security, improve climate resilience, and promote financial inclusion. Together, these institutions aim to strengthen MSMEs, expand access to finance, and drive sustainable agrifood development across the region.
