In this ‘MSME Champions’ interview, Atul Tandon of Opportunity International explains how the organization channels funding to agripreneurs and small-scale farmers through its Farmer Support Agent network and local financial institutions. ‘MSME Champions’ is a series of interviews capturing the expertise and experiences of individuals and institutions supporting enterprises in the missing middle of agriculture, as part of an advocacy campaign for the International Day for Micro, Small and Medium-sized Enterprises (MSMEs) on 27 June 2024.

The International Day for Micro, Small and Medium-sized Enterprises (World MSME Day) is an opportunity to reflect on the key role of enterprises in the missing middle of agriculture. Please tell us why and how Opportunity International supports their growth.

Smallholder farmers are the unsung heroes of our global food supply, producing a third of the world’s food supply. Despite their critical role, many of these farmers and other agripreneurs face enormous challenges in securing a stable income and providing for their families. At Opportunity International, we recognize that MSMEs in agriculture are not just businesses—they are the backbone of rural economies and pivotal to achieving food security and resilience.
Our support for agricultural enterprises is multifaceted. We offer financial products designed with their unique needs in mind, such as loans with flexible repayment terms that align with the agriculture cycle. But our support goes beyond finance. We provide comprehensive technical assistance and facilitate connections to larger markets through strategic partnerships. This holistic approach ensures that farmers receive funding and gain the knowledge and market access necessary to thrive.
By empowering these farmers to increase their productivity and income, we’re fostering sustainable growth and lifting entire communities. More opportunities in agriculture translate to fewer families experiencing hunger, more children staying in school, and stronger, more resilient rural livelihoods. This mission is about more than providing financial support—it’s about nurturing the integral role of smallholder farmers in our global food system.

Please describe some of the challenges your institution faces when lending to agricultural MSMEs. What are some of the innovative approaches you use to navigate them?

Lending to micro, small and growing enterprises in African agriculture presents a unique set of challenges. Farmers grapple with unpredictable cash flows tied to seasonal harvests, face significant risks inherent in agriculture, cannot afford market interest rates, and often lack traditional forms of collateral. These factors create barriers that make it hard for smallholder farmers, who are pivotal in producing much of the world’s food, to access the credit they need to sustain and grow their businesses.
At Opportunity International, we are committed to breaking down these barriers through innovative solutions. Our loan products are designed to align with the agricultural cycle, ensuring that repayment schedules reflect the ebb and flow of farmers’ income. We further bolster our approach through partnerships with local cooperatives and value chain actors, which help us distribute risk and provide more comprehensive support. These collaborations are essential in delivering the tailored services that farmers need to thrive.
One of the most effective ways to reach farmers is by leveraging the strength of their communities. That’s why we established a network of local Farmer Support Agents (FSAs)—trusted farmers embedded within the communities we serve. Equipped with smartphones, these FSAs deliver vital training and support to their peers, extending our reach far beyond what our staff could achieve alone.
We empower these FSAs with connections to their fellow farmers, advanced technological tools to enhance farming practices, and comprehensive financial and digital literacy training. This ensures they understand business management, loan terms, and how to effectively apply for and utilize loans to expand their operations. With a focus on regenerative agriculture, FSAs promote sustainable practices that can be widely adopted across the community.
Additionally, we’ve embraced digital tools and data analytics to better assess and manage risks, supporting farmers in developing more effective agricultural practices. One of our most exciting innovations is an AI-powered chatbot that provides hyper-specific, climate-adaptive advice directly to farmers through WhatsApp. This tool allows farmers to navigate the challenges of climate change from the convenience of their phones, enhancing their ability to adapt and thrive.
High interest rates are one of the biggest barriers to increasing capital flows to smallholder farmers and entrepreneurs. We work with local financial institutions, providing them with long-term guarantees, funded deposits, and low-cost debt to buy down interest rates, lower the cost of capital and increase lending.
Climate change adds another layer of complexity, posing existential risks through increased frequency of natural disasters and financial hurdles that hinder smallholders from securing the necessary financing to grow and adapt. Despite these pressing needs, the Climate Policy Initiative found that only 0.8% of climate financing in 2023 was directed to small-scale farmers and agri-food MSEs. To address this gap, we are collaborating with Convergence and other leading funders on the Climate Capital Alliance. This initiative aims to bridge the divide between impact investment and catalytic capital, particularly focusing on women and farmers.
Another challenge is the availability of adequate liquidity to increase lending at the base of the economic pyramid, within the financial institutions sector. Recent increases in capital requirements and coverage ratios have put a further crimp in capital availability. We would strongly advocate for increasing international lending institutions like the World Bank Group and Development Finance Institutions (DFIs) to increase the flow of low/no cost capital targeted to BOP markets, to domestic Financial Institutions in low-income countries.
By transforming these challenges into opportunities, we empower smallholder farmers to grow more, earn more, and drive the prosperity and stability of their communities.

What message would you like to share with donors, commercial banks and other players that hesitate to lend to agricultural enterprises?

To those on the fence about investing in agricultural enterprises, I urge you to take a closer look. Agriculture is not merely another sector—it is the cornerstone of many economies and essential for global food security. Smallholder farmers, who produce a substantial portion of the world’s food, often struggle to meet basic needs despite their critical contributions.
These farmers have shown incredible resilience, particularly during the pandemic, continuing to adapt and produce under challenging conditions. Investing in them is not only a moral imperative but also a strategic opportunity. The potential for growth in agricultural finance is vast and largely untapped.
While the risks are real, they are manageable with innovative approaches. Flexible loan products, advanced digital tools for risk assessment, and strategic partnerships with local cooperatives are some of the ways to mitigate these risks. Supporting agricultural enterprises goes beyond financial returns; it drives sustainable development and empowers communities.
By stepping up and providing the necessary backing, we can ensure more families are nourished, more children receive education, and rural communities flourish. Let’s harness the potential of these vital businesses and support them in building a brighter, more sustainable future.
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Meet the Champion

Atul Tandon is a global leader known for building, growing, and turning around some of the world’s best-known for-profit and non-profit enterprises. Tandon currently serves as CEO of Opportunity International, a non-profit organization that designs, delivers, and scales innovative financial solutions to help families living in poverty build sustainable livelihoods and access quality education for their children. Prior to Opportunity International, Tandon founded and served as CEO of the Tandon Institute, which provides strategy, solutions, and staffing to enable social sector enterprises. Before that, Tandon served as the leader of United Way Worldwide’s 41-country International Network, helping build and shape the world’s largest network of community-based charities. Additionally, he oversaw the network’s worldwide corporate relationships and fundraising functions. In 2000, Tandon joined World Vision United States and led the organization through a period of unprecedented expansion, tripling revenues over his nine-year tenure. In addition to his U.S. responsibilities, he also led World Vision’s global initiatives to expand its fundraising in 25 countries. He also served on the board of VisionFund International, World Vision’s microfinance network.