Why PlusPlus

As you may already know, Lendahand, in collaboration with Solidaridad, ICCO Cooperation, and Truvalu, has launched the new platform PlusPlus—the crowdfunding platform dedicated to improving food security in the agricultural sector in emerging countries. Sounds great, but why did Lendahand decide to start with PlusPlus? We’re happy to explain.

PlusPlus contributes to better food security in emerging countries

Globally, about one in nine people is undernourished. This is the result of a combination of factors such as the climate crisis, economic underdevelopment in developing countries, low incomes of small-scale farmers, and the lack of financing for agri-businesses. All these factors prevent farmers and agri-businesses from fully contributing to the food supply in countries where it is most needed.

Agri-businesses need extra capital to bridge the time gap

Companies in the agricultural sector have a great need for capital—more than industrial companies. This arises from a simple necessity: bridging the time between sowing and harvesting. For some crops, this takes about 3 to 4 months, but for tree crops like coffee, tea, and cocoa, it can take years. During this waiting period, the costs of fertilizers, personnel, and their own food supply continue, even though no money is coming in.

Lendahand can further its social mission for these farmers

By supporting these farmers who need capital to grow and contribute to the food supply in emerging countries, Lendahand can further strengthen its social mission. This way, we extend our mission to fight poverty within the agricultural sector.

What makes PlusPlus unique compared to Lendahand?

Although both platforms focus on creating impact, there are two differences that make the two platforms unique.

PlusPlus focuses entirely on the agricultural sector

As is known, Lendahand focuses on poverty reduction in various sectors and on improving basic services like (clean energy). PlusPlus focuses entirely on the agricultural sector. Small and medium-sized agrifood businesses often struggle with enormous difficulties in obtaining financing. These "missing middle" enterprises are too large for microcredit but too small to meet the high demands of banks. Additionally, these farmers are heavily dependent on the climate, always facing the risk of a failed harvest. For financial institutions, this risk is often too high to provide a loan. The loans at PlusPlus are therefore exclusively with direct partners. Lendahand, besides direct investments, also works extensively with local partners (indirect investments).

PlusPlus applies a 0% interest rate

To offer farmers the best possible rate, PlusPlus applies a 0% interest rate on the investments made. This maximizes social returns and enables farmers in emerging markets to contribute as much as possible to global food security. PlusPlus is therefore more of an alternative to donating, as no return is expected from the investment. Lendahand works with interest rates of 2-7% and is therefore an alternative to saving and investing.

By joining forces with our partners, we strengthen our mission and make even more impact in emerging markets and developing countries. Want to learn more? Take a look at the PlusPlus website and check out the first projects you can invest in. And good to know, you can log in to PlusPlus directly with your Lendahand account.