Adopting Best for Inclusive Lending For the Agricultural Value Chain
According to expert reports, agriculture sector in Africa is the least productive in the world. Small-scale and subsistence farmers, pastoralists, and fishermen produce most of the food consumed in this region, yet they continue to face a number of challenges. Lack of capital for investment contributes significantly to the lowering of small scale farmers’ productivity levels.
How can formal financial institutions provide agricultural credit that meets the unique demands of the entire agricultural?
“Agriculture in African countries is massively under-funded”.
1. Financial inclusion and innovation in Agriculture
2. Value chain financing
Building competitive commercial Value Chains
3. Doing Successful Agribusiness in Africa
Enabling farmers to think like business people
Important Business initiatives and skills
4. Public-private partnerships
Source of lending-public finance vs private sector funding
Unlocking private funding- Partnership for effective financing
5. The role of digital finance technologies
Reduce operating costs
6. Policies: Infrastructure & legal/regulatory intervention
Duties, Interest rate caps
Lenders expansion regulations
Dispute resolutions mechanisms for contract farming.
Land rights-as security to financiers-women grow 70% of Africa's food but few have rights over the land they tend
7. Risk mitigation
Risks perceived by formal financiers (fear to lend)
Risks perceived by farmers (fear to borrow)