Collatio works with farmer groups and communities who do not have the financial means to develop their business models in a way that allows them to capture more value. Most farmers we work with do not have the appropriate collateral in terms of land ownership to take up loans with fair interest rates. The result is that in order to make an investment to advance their businesses, farmers have to take up loans that puts them into a long-term debt position.
When constructed carefully and over time, we believe trust itself becomes collateral. Building this trust requires open dialogues at a level playing ground where all stakeholders are equal. It also requires a long-term engagement with farmer groups and communities. Following this recipe, trust becomes the DNA of the relationship, ultimately transforming itself into the currency of true entrepreneurship.
Following this recipe, trust becomes the DNA of the relationship, which ultimately is being transformed into the currency of true entrepreneurship.
Thanks to the diverse background of Collatio’s founders, which combines three different nationalities from the global south and north, we are able to liaise with farmer groups and communities equally. Why? Because our families were once in the same position as them. This is different than most NGOs and social businesses that recruit local staff in countries where they operate projects, but keep the overarching management in the global north.