Farmer Income Gains Ground Up Investing Secures $6 Million First Close for Africa and Latin America Fund
Ground Up Investing (GUI), the impact investing arm of Corus International, has announced a $6 million first close for its second investment fund, designed to expand access to financing for agricultural businesses across Africa and Latin America. Anchored by an investment from Corus International, the $20 million Fund 2 aims to strengthen agricultural enterprises, improve farmland management and generate additional income for smallholder farmers.
The new fund will provide working capital loans to agricultural small and medium-sized enterprises (SMEs) operating in Kenya, Uganda, Rwanda, Colombia, Peru and Ecuador. Through these investments, GUI expects to support improved land management across more than 20,000 acres of farmland and generate $200 million in new farmer income.
The initiative builds on Ground Up Investing’s strategy of directing capital toward agricultural businesses that play a vital role in connecting smallholder farmers with markets. By financing these enterprises, the organization seeks to address a persistent funding gap in agricultural markets while contributing to stronger rural economies and more resilient food systems.
Fund 2 Targets Financing Gaps for Agricultural Businesses
Agricultural SMEs are essential to rural economies in many developing markets. These businesses purchase crops directly from smallholder farmers, help producers reach commercial markets and create employment opportunities within their communities. However, despite their importance, many face significant challenges when seeking financing to expand their operations.
Traditional financial institutions and commercial investors often struggle to meet the capital requirements of these enterprises. Agricultural businesses typically need loans ranging from $250,000 to $1 million, amounts that are generally too large for microfinance institutions but may be too small to attract many conventional commercial investors.
Ground Up Investing’s second fund is designed to address this financing gap by offering two-year working capital loans to qualifying agricultural SMEs. The financing will help businesses purchase crops from farmers, maintain operations, manage seasonal cash flow requirements and strengthen their ability to serve local agricultural markets.
Access to working capital is particularly important for agricultural enterprises because their purchasing activities frequently depend on harvest cycles and seasonal production patterns. Businesses need sufficient funds to buy crops when farmers are ready to sell, even when their own revenues may not be received until later in the supply chain.
By providing appropriately structured financing, Fund 2 aims to help agricultural businesses maintain reliable purchasing relationships with farmers while expanding their ability to operate and grow. Stronger enterprises can, in turn, provide smallholder producers with improved market access and more dependable commercial opportunities.
The fund’s geographic focus spans six countries across East Africa and Latin America. In these markets, locally rooted agricultural businesses can serve as important links between smallholder producers and larger supply chains. Supporting their growth can help retain economic activity within rural communities and improve the capacity of agricultural markets to withstand financial and operational challenges.
Building on the Results of the First Fund
Fund 2 follows the launch of Ground Up Investing’s first fund in 2017. The initial investment program deployed $5 million across 15 agricultural businesses, generating measurable economic and land management outcomes.
According to GUI, the businesses supported through Fund 1 have collectively paid more than $50 million to farmers and created over 800 local jobs. The portfolio has also contributed to improved land management across more than 50,000 acres.
These results illustrate the potential for targeted financing to generate benefits beyond the growth of individual businesses. When agricultural enterprises have the capital necessary to purchase crops, expand operations and establish stronger market connections, smallholder farmers can gain access to more reliable buyers and additional income opportunities.
One example is Mountain Harvest, a Ugandan coffee company supported by Ground Up Investing’s first fund. The company purchases coffee from more than 3,000 farming families and pays them a 30% premium.
Mountain Harvest demonstrates how financing agricultural businesses can influence relationships throughout the supply chain. By helping local enterprises strengthen their operations and purchasing capacity, impact-focused investment can support farming households while contributing to the development of agricultural markets.
The experience of Fund 1 provides a foundation for GUI’s second fund, which is intended to expand the organization’s reach and deepen its contribution to farmer livelihoods. With a larger fundraising target of $20 million, Fund 2 seeks to scale a financing approach that combines business development with measurable social and environmental outcomes.
Aiming to Generate $10 in Farmer Income for Every Dollar Invested
Mark Muckerheide, CEO of Ground Up Investing, said the first close represents more than the amount of capital secured for the new fund. He emphasized the importance of investor confidence in farmers, entrepreneurs and rural businesses that support local economies.
“This milestone reflects much more than dollars raised,” Muckerheide said. “It reflects growing confidence in the farmers, entrepreneurs and rural businesses that power local economies every day.”
He noted that the organization’s experience has demonstrated how access to capital can help agricultural enterprises grow, increase farmer income and strengthen communities.
Muckerheide also outlined the fund’s long-term financial impact objective. Fund 2 is targeting $10 in additional farmer income for every $1 invested, reflecting GUI’s focus on translating investment capital into economic benefits for farming households.
The organization’s broader ambition is to generate $1 billion in farmer income over the next ten years. Achieving this goal will depend on expanding access to finance for agricultural businesses, supporting their commercial growth and ensuring that the benefits reach the farmers who supply them.
The income target highlights GUI’s emphasis on measuring investment success through outcomes for agricultural communities, alongside the development and performance of the businesses receiving financing.
For smallholder farmers, improved access to buyers and stronger agricultural enterprises can be important factors in building more stable livelihoods. For businesses, access to working capital can provide the resources needed to purchase crops, maintain supply relationships and pursue growth opportunities.
Corus International’s Long-Term Commitment to Rural Communities
Ground Up Investing was established by Corus International in 2017 to bring patient, impact-focused capital to promising agricultural businesses that are frequently underserved by traditional financing providers.
Corus International, headquartered in Washington, D.C., is a global nongovernmental organization focused on humanitarian assistance and development. GUI was created as an extension of Corus’ longstanding commitment to helping communities thrive, using investment capital to support businesses capable of delivering both economic value and meaningful social impact.
Over time, the initiative has developed into an investment platform focused on demonstrating that financial returns and positive development outcomes can complement one another. Rather than relying solely on conventional financing approaches, GUI concentrates on enterprises that serve agricultural producers and contribute to the economic strength of rural communities.
Ambassador Daniel Speckhard, president and CEO of Corus International, said the organization’s decades of work with farmers and rural communities have reinforced the importance of supporting local entrepreneurs.
“Corus has spent decades working alongside farmers and rural communities around the world,” Speckhard said. “Ground Up Investing has shown that when capital reaches local entrepreneurs, it creates opportunities that extend throughout entire communities.”
He added that the strong response from investors reflects increasing recognition of the role rural businesses play in economic development and community resilience.
Speckhard also emphasized that agricultural enterprises are more than commercial participants in food supply chains. They are important partners in building stronger communities by connecting farmers with markets, creating employment and supporting economic opportunities in rural areas.
Expanding Impact Through Agricultural Investment
The $6 million first close marks an important step toward Ground Up Investing’s $20 million fundraising target for Fund 2. With Corus International serving as the anchor investor, the fund will continue the organization’s work of directing capital toward agricultural SMEs in underserved markets across Africa and Latin America.
Its priorities include financing businesses that purchase crops from smallholder farmers, supporting local employment, improving land management and expanding opportunities for agricultural producers to earn additional income.
The fund’s projected outcomes include improved management across more than 20,000 acres of farmland and $200 million in new farmer income. These targets build on the results reported for Fund 1, which supported 15 agricultural businesses, generated more than $50 million in payments to farmers and contributed to land management improvements across more than 50,000 acres.
As Ground Up Investing works toward completing its second fund, its approach underscores the importance of financing the agricultural businesses that connect farmers to markets. By addressing the working capital needs of these enterprises, GUI aims to strengthen local food systems, encourage business growth and create lasting economic opportunities for rural communities.
The organization’s long-term vision of generating $1 billion in farmer income over the next decade further reflects its commitment to measuring impact through tangible improvements in agricultural livelihoods. Fund 2 is intended to build on the first fund’s experience and extend that approach to additional businesses and farming communities across its six target countries.
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