The organisation, which is co-financed by Luxembourg’s foreign affairs ministry, works with local partners and is active in Africa, Central America and Asia to improve the living conditions of vulnerable people through services such as micro-loans. ADA’s annual report, published on 10 July, noted that €12m were spent on its activities in 2022.
Last year, the organisation launched its first forestry projects to support the owners of small forests and wood-processing enterprises, said a press release published by the NGO. “2022 was marked by new inclusive green finance projects in Guatemala and Rwanda to provide tailored financing and training to small forestry businesses,” said Laura Foschi, executive director of ADA.
A pilot project in Guatemala, for example, involved working with a business incubator to help forest-owners manage their forests using sustainable good practices, while small businesses that transform wood received entrepreneurial training.
“Small forest owners and tenants are a new group of beneficiaries for ADA with specific needs; they face longer production cycles and have longer-term financing requirements than farmers,” said Foschi.
69,406 farmers, forest-owners benefited from technical support
To support small-scale producers, ADA sets up technical assistance projects, develops financing services and access to finance, and strengthens links between different parts of the value chain to help farmers and forest owners get access to the market.
Last year, 69,406 farmers and forest-owners benefited from technical support on topics such as good practices, financial education or entrepreneurship.
24,294 smallholders benefited from loans for farming, purchasing inputs, mechanisation, processing, storage or marketing, noted the report, while 13,812 farmers benefited from improved market access through, for example, digital platforms.
553 entrepreneurs received tailored loans
ADA also works with partners to help micro-enterprise and small business owners acquire business skills and get access to financial services. “553 young entrepreneurs were financed with tailored financing mechanisms,” noted the organisation’s annual report, while “383 young people benefited from business support programmes via incubators and/or an accounting service by young accountants via a digital platform.”
One example of such support is a project in Senegal. Together with a local microfinance institution (Union Mu- tualiste d’Epargne et de Crédit), ADA is helping young micro-entrepreneurs by building and coordinating a network of technical and entrepreneurial support providers.
Access to renewable energy or energy-saving equipment for 646 households
The Luxembourg NGO also boosts access to green energy and drinking water for people in developing countries. In 2022, ADA developed green energy loans in Central America and the Philippines, for example, and launched projects with solar energy platform operators in Senegal and Burkina Faso.
646 households were able to access “renewable energy or energy-saving equipment thanks to a loan and/or via energy providers who were supported by ADA,” said the report. It also supported water and sanitation projects in Guatemala, and financial inclusion projects in countries including Tunisia, Niger and Cambodia.
ADA’s partners in 2022 included the grand duchy’s climate and environment ministry, Luxembourg Aid & Development, the University of Luxembourg, the Luxembourg Sustainable Finance Initiative, the Maison de la Microfinance, as well as private firms in Luxembourg.
The ADA team includes approximately 45 employees and a dozen technical advisors in the field.
Find the full report here.