About the Agricultural Cooperative Development Fund
The Cooperative Fund is a not-for-profit, member-based entity that was created with the support of CARE International in the Caucasus in 2017 to boost food production and reduce rural poverty in Georgia through agricultural cooperation. The Cooperative Fund was created to continue the work done by CARE under the European Neighbourhood Programme for Agriculture and Development (ENPARD) between 2014-17. Under the ENPARD programme, CARE in the Caucasus with other implementer INGOs in Georgia, united subsistence farmers into agricultural cooperatives and provided them with financing and technical expertise to help increase the quality and quantity of their production, improve living conditions and create rural employment opportunities. During 2014-2017 1,300 cooperatives were established in Georgia, 300 of which received funding and capacity building from ENPARD.
The Cooperative Fund addresses the major problems faced by agricultural cooperatives in Georgia, which is a lack of access to finance, along with a lack of knowledge on modern technologies and solutions. The Fund aims to strengthen agricultural cooperatives, by increasing access to finance at the same time equipping them with the technical knowledge and skills they need to effectively use these resources
The Cooperative Fund covers almost all value chains in the field of agriculture, the types of production the Fund’s members are predominantly engaged in are: honey, nut, corn, fruit, tea and wine.
What is the Cooperative Fund’s vision?
The goal of the Fund is to:
- Transform subsistence farms into commercial businesses
- Strengthen agricultural cooperatives by increasing their access to finance, knowledge and information
- Implement innovative and energy efficient solutions in the field of agriculture
- Support cooperatives to become social actors and change agents in their communities
What types of financial services does the Cooperative Fund provide?
The Fund currently supports agricultural cooperatives engaged in 15 different areas of production with both financial and technical support.
They offer three financial loan products to their cooperative members:
- Loans for working capital (max US$16,000)
- Loans for small size capital investment/assets (max US$6,000)
- Loans for larger capital investment/assets (max US$16,000)
How much interest does the Cooperative Fund charge?
The Cooperative Fund charges an Annual Percentage Rate (APR)* of between 6% and 9% per annum on a declining basis. The maximum loan term is 60 months for the biggest loans, but most loans are repaid over 12-14 months. All loans come with a grace period. The Cooperatives pay no other fees or charges apart from a small fee (between $7-$30) to notarise collateral commitments.
*The Annual Percentage Rate (APR) is a standard way of expressing the cost of a loan that allows for comparison between loans. It includes annual interest, insurance, and fees that the borrower must pay, and is expressed as a percentage of the amount borrowed.
Does the Cooperative Fund provide any training?
In addition to finance, the Cooperative Fund provides technical assistance to their members. This technical assistance comes in the form of the following:
- Expert visits – they arrange regular site visits from experts in the various agricultural sectors their members are engaged in.
- Study tours – they also arrange learning expeditions for their cooperative members, including visits to other countries
- Meetings with Input suppliers
- Sector-based technical training
- Information and advice on Energy Efficient Technology for Rural Development
- Participation in Conference/Workshop/Exhibitions, including finding markets to showcase their members produce
- Membership in the Georgian Alliance on Agriculture and Rural Development
Where can I find out more information about the Cooperative Fund?
Further information about the Cooperative Fund is available from the organisation’s website here.
Cooperative Fund: Basic facts and figures (March 2023)
Full name: | The Agricultural Cooperative Development Fund |
Established: | 2017 |
Average loan size: | US$7,194 (group loan to a cooperative) |
Number of active loans: | 80 |
Outstanding loan portfolio: | US$315,286 |
Portfolio at Risk (PAR) at 30 days*: | 15% |
Proportion of loans given to women: | 30% |
Proportion of loans given in rural areas: | 100% |
*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.
Georgia: Basic facts and figures (June 2023)
Population: | 3.78 million* |
Currency: | Georgian lari* |
GDP per capita: | US$5,023* |
Inflation (GDP deflator): | 10.3%* |
Life expectancy: | 74 years* |
Percentage of population living on less than $2.15 a day: | 5.5%**** |
Human Development Index ranking: | 63 (of 191 countries)** |
Population using safely managed drinking water: | 66%*** |
Infant mortality rate (per 1,000 live births): | 8* |
Percentage of adults with a bank account: | 70%* |
Sources: *World Bank 2021 **United Nations Development Programme 2021 ***WHO 2020 ****World Development Indicators 2021
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