What does Alterfin do?
Alterfin, a Belgian social investor since 1994, aims to improve the livelihoods and living conditions of socially and economically disadvantaged people and communities, predominantly in rural areas in low- and middle-income countries around the world. To achieve its mission, Alterfin invests in microfinance and sustainable agriculture in Asia, Latin America and Africa.
Alterfin at a glance
- 175 partners: 92 microfinance institutions (MFI) and 83 organisations active in sustainable agriculture
- 2,528,000 beneficiaries
- 60% of the beneficiaries are women
- 76% of our partners in agriculture are organic certified
- At least 2 years of operation
- Broad outreach of at least 150 famers benefiting
- Benefits for smallholder farmers should be demonstrated (e.g. by fairtrade label and/or organic certification)
- Minimum yearly sales > USD 500,000
- Operational self-sufficiency > 90% and positive trend
- Amount: between 150,000 and 1,500,000 USD
- Currency: USD, EUR or local currency
- Term: 2 to 5 years
- Interest rates: near-market rates
- Short-term trade loans with a tenor from 3 to 18 months, used to finance harvest and processing; theseloans can be given against purchase orders
- Long-term investment loans with a tenor up to 5 years, used to finance capital investment; these loans require physical asset collateral
- The institution fills in the application form (available on www.alterfin.be) and sends it to firstname.lastname@example.org, email@example.com or firstname.lastname@example.org . Alterfin determines whether the institution meets the eligibility criteria.
- If eligible, an investment manager performs a due diligence visit on site.
- An investment proposal is submitted to the investment committee, which approves or rejects the proposal and the conditions.