Agrapp is a platform that connects agricultural projects with collaborative financial resources. We are shortening the distance of the countryside to the city through the access to financing productive and sustainable projects. Agrapp will allow the growth of the agricultural sector in Colombia and allow the flow of investments to productive projects, which will create jobs and will strength the value chain. Agrapp can create change and generate economic and social development in all regions, besides the reinserted Colombians will have decent opportunities for work. Likewise, agricultural productivity will be increased and the food supply chain for Colombia and the region will be strengthened. Agrapp aims to create financial inclusion and allow the access of small and medium producers to other funds of financing different than the traditional banking system. Also, Agrapp aims to encourage investments in the agricultural sector and sustainable projects.
During 2016, only approximately 10% of the annual costs of the production and commercialization of food were finance, the 82% of the production was concentrated in 12 of the 32 departments of the country and 80% in large and medium-sized companies. For that year, the disbursement of loans was 3.5 million dollars and for 2017 they were 5.5 million dollars.
In Colombia, 26,9% of the population is living below the poverty line in Colombia. These situation triggers social problems such as malnutrition, limited access to education and basic services, social discrimination, exclusion and lack of participation in decision making.
Colombia has a potential market for social innovation and is attractive to investors because of its political and economic stability. Besides, the country has a potential for economic growth and the growth of the rural sector, since in Colombia we have 114 million hectares of which 40 can be productive, but at this moment we only take advantage of close to 20%, that is, 80% of the productive land is being unused.
On the other hand, it is evident that the difficulty in the access of financing and economic resources is caused due to high requirements for many small and medium agricultural producers, also, they don’t have credit history which doesn’t allow them to have access to investment resources, stagnating and limiting the potential of Colombian agriculture. Another important factor whereby the producers does not access to financial options is due to the distrust that they have around the companies that provide these services and the high costs of the traditional banking system.
Agrapp will allow the development of the productive projects, it can generate jobs, create more welfare for the families and increase the number of formalize jobs and people will have access to social protection.
Agrapp was born as a proposal to generate impact at a productive level and to solve access to financing for the small and medium-sized agricultures.
Agrapp is developing a leveraged financial vehicle in a web platform to help agricultural producers access collaborative financing by connecting the community of people interested in investing in projects of productive impact in rural areas and were the producers will receive consulting in the planning and evaluation of projects.
Agrapp manages two main pillars as clients to develop our business model. Among which we find agricultural producers and investors, understanding that these investors are those natural or legal persons who have an investment sum exceeding 350 USD.
In the Colombian financial market, investment options are quite limited, which is why, thanks to our web platform and collaborative financing, we will be able to democratize investments for the Colombian agricultural sector, thus generating added value for each of the investments made.
For producers, we offer fast lines of financing, which include a process of technical support and continuous monitoring. We even have chaining services with final buyers which lower the uncertainty in prices and give greater added value to the producer, eliminating intermediaries from the chain.
For investor, we give the opportunity to conventional investors to invest in the agricultural sector without having to operate the projects, knowing from day zero the expected profitability.
For the Allies of Agrapp, we offer recurring purchases of supplies and services to serve the Agrapp network.
Besides, the producers connected to Agrapp will receive support from the planning of the project to the commercialization of the product. In addition, investors will be able compare different projects on the platform. The investors will be able to make investments from 350 USD and obtain a return of 4% to 18% depending on the project.
Agrapp will be the financial vehicle that allows the development of impact projects in Colombia. This approach allows us to think about connect projects with planning, precision agriculture, big data, linkage with producers. This productive approach allows the creation of a sustainable social impact over time.
We hope that within 5 years of operation of Agrapp, we will impact more than 2000 families thanks to the financing generated and the quality of life of the families will be improved, they will be given access to formal jobs and there will be growth in the agricultural productive sector of the country and the region.
If we can create better opportunities for the rural sector in Colombia, these will generate a cascade effect that will benefit to the farmers and their families. If we are able to create wealth in the rural sector, the children will have more opportunities like access to education, better health care, better jobs and better access to basic services.
We consider that this project is transversal to many UN Sustainable Development Goals (SDG) such as Zero Hunger, because the investments made through Agrapp will be able to create a sustainable food chain, where the farmers will be able to produce foods, the economic development of rural areas is encouraged, and the environment is protected.
Besides, the productivity of the agriculture will be increase and it will be a sustainable food production system where Colombia also stands out for its diversity in fruit and vegetables and its productive lands. It is very important to promote the productive development in these areas in a sustainable way, since they represent the food security of the country and the region.
On the other hand, the development of this project will impact also in the quality of the education since the farmers will be able to provide education for their children reducing inequalities, women will have opportunities to work and it will generate more jobs and economic growth. Also, by supporting small producers it will reduce the effects of the climate change because there will be more food available, allowing the decrease of the carbon footprint.
This project will be fundamental for the economic growth of the country, it will allow the access to financial services to agricultures, it will increase the productivity of the rural areas, it will encourage the formalization of small and medium-sized enterprises and it will allow and create more jobs for men and women in the rural areas, especially for the reinserted people who are looking for decent job opportunities.