The International Finance Corporation (IFC), a member of the World Bank Group, is providing a $42 million equivalent debt financing package to Agricover Credit IFN, Romania’s largest non-bank financial institution focused on agriculture, to improve access to funding for micro, small, and medium enterprises (MSMEs) in the sector.
The funding will target underserved segments, with at least 50% of the proceeds allocated to women-owned MSMEs, aiming to close a critical financing gap for women in agriculture and agribusiness across Romania, according to an announcement.
The financing includes €20 million mobilized through IFC’s B Loan Program from the Netherlands-based ILX Fund, which focuses on SDG-aligned investments, and German impact investor Invest in Visions.
Agriculture accounts for around 5% of Romania’s GDP and employs nearly 30% of the national workforce, a figure significantly higher than the European Union average of 5%.
The country has the sixth-largest arable land area in the EU and is a major producer of wheat and corn.
However, the sector continues to face major challenges, including limited access to finance, structural inefficiencies, and low productivity, particularly in rural areas and among women-led businesses.
Agricover Credit, a longstanding partner of IFC, plans to use the funds to extend long-term loans to farmers, helping them invest in equipment and working capital amid global supply chain disruptions and rising price volatility.
The initiative is supported by the Women Entrepreneurs Opportunity Facility (WEOF), a joint program by IFC’s Banking on Women platform and Goldman Sachs’ 10,000 Women initiative.
The facility will offer a performance-based incentive to promote gender-inclusive lending.
The project comes amid broader geopolitical tensions affecting agricultural markets in Eastern Europe, further limiting lending appetite from traditional financial institutions.
The funding package is expected to enhance the resilience of Romanian agriculture while promoting financial inclusion and gender equality.