The Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has increased its commitment to Root Capital, an agricultural impact investor, to a $50m financing facility.

OPIC’s commitment is Root Capital’s largest source of funding, and will significantly support Root Capital’s established on-lending program to rural, underserved businesses in Africa and Latin America.

"As the leading impact investor in the US government, OPIC is excited to invest in high-impact sector projects that advance underserved populations in developing countries," said Elizabeth L. Littlefield, OPIC’s President and CEO.

"OPIC’s continued partnership with Root Capital will further generate social and financial returns for small farmers in vulnerable environments, sustainably improving their livelihoods and cultivating prosperity in their communities," she said.

Founded in 1999, Root Capital has provided nearly $950m in loans to more than 600 small and growing agricultural businesses that collectively source from 1.2 million smallholder farmers.

Root Capital's loans have helped its small business clients generate $1.5bn in total revenue, $980m of which has been paid directly to smallholder farmers.

OPIC has been Root Capital’s largest investor since 2010, and the institution’s previous investment in Root Capital was critical in helping the organization rapidly scale and attract new investors.

In the six years since OPIC’s first investment, Root Capital has more than quadrupled the amount lent to agricultural enterprises and doubled the number of farm families that it had reached in the 10 years prior.

Willy Foote, Root Capital founder and CEO, said: "OPIC’s decision to increase their existing facility to $50m is a vote of confidence in Root Capital."

"This facility is indispensable as we continue charting the course of our business, pushing the frontiers of agricultural finance, and supporting agricultural businesses as they generate stable employment for millions in some of the world’s poorest, most environmentally sensitive places. We’re extremely proud to work with OPIC, and honored by their commitment to improve farmer livelihoods around the world," he added.