Farmers who produce for the market need financing to maintain and improve their agricultural production. Banks in developing countries are looking for business investment opportunities. But what is needed to match the interests of farmers and bankers?
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Below you will find the most popular and most recent discussions, publications and news items, while on the left you will find Resources with useful websites and publications, Toolkit links to various agricultural finance tools and an overview of past and future Finance Fairs in the countries where AgriProFocus is active.
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In efforts to promote and support transformation of agriculture from subsistence to commercial undertaking, the Tanzania Agricultural Development Bank (TADB) and the Tanzania Horticultural Association (TAHA) are in the process to develop partnership to safeguard horticultural industry.
The Bank wants to address limited financing challenges that face horticultural industry in the country mainly by addressing issues such as commodity trading, high interest rates, short-term loan maturities and rigid repayment terms without flexibility to accommodate the seasonal and/or cyclical nature of agriculture.
As an apex private sector association, TAHA has been actively engaging with government institutions and agencies, Development Partners, Private Sector companies and platforms, regional and international bodies in its strategy to promote inclusive industry growth and sustainability and advocacy for the growth and competitiveness of... Read more
24 April 2017, Max Mattern
CGAP notes in a recently released publication, “Digitizing Value Chain Finance for Smallholders,” innovations in digital financial services offer an unprecedented opportunity to extend the reach of value chain finance. By increasing the information available on smallholders’ financial and agricultural lives and reducing transaction costs, these services have the potential to provide excluded smallholder segments with a range of products and services designed to increase productivity, manage risk, and access new markets. For example, aggregation and analysis of digital data related to sales, payments, and seasonality of cash flows among value chain actors promise to overcome barriers to providing credit not only to smallholders, but also to the traders, processors, and retailers that serve them. At the same time, branchless banking and the rise of mobile devices are making payments to and from sma... Read more
Michelle Kaffenberger, Danielle Sobol, 19 April 2017
Mystery shopping is a tool used externally by market research companies, watchdog organizations, or internally by companies themselves to measure quality of service, or compliance with regulation, or to gather specific information about products and services. The mystery consumer's specific identity and purpose are generally not known by the establishment being evaluated.
Mystery shoppers perform specific tasks such as purchasing a product, asking questions, registering complaints or behaving in a certain way, and then provide detailed reports or feedback about their experiences.
In a mystery shopping study in Zambia, most shoppers were able to register for a digital financial services account without showing the necessary identification. These shoppers were able to bypass over-the-counter transaction limits. And most agents who quoted transaction fees to shoppers told shoppers the wro... Read more
Harriet Okunia, the Relationship Manager,Housing Finance Bank, Gulu Branch, confirmed that they have opened between 50-100 accounts for the youth in agribusiness during and after the agri finance fair. "Thank you AgriProFocus and partners for organizing this event “
On the 26th and 27th of April 2017 AgriProFocus Uganda Innovation Communities on Access to Finance and Youth In Agribusiness (SNV, GIZ AGRUFIN) in collaboration with, the Northern Uganda partners; Technoserve, AVSI, Save the Children, Smart up, Action Aid, BOSCO – Uganda, WPDI-Gulu, NUYDC-LABRA, PELUM, YALI organized a two day Agribusiness Fair. It was intended to facilitate platforms for building business & market, brokering deals between youth Agri-preneurs and financial services providers and other value chain actors for improved agricultural production and productivity.
The event attracted a total of 739 participants and 69 exhibitor... Read more
Mr. Jimmy Olanya was the key note speaker at the Northern Uganda youth finance fair that saw over 500 youth actively involved in agribusiness in attendance, he advised the youth to start with what they start with what you have to reach where they want to and not look to other sources as their primary source of income like the government, and NGOs.
En vue de promouvoir les approches Chaines de Valeurs, votre réseau organise un débat en ligne ce jeudi 27 Avril 2017 de 14h30 à 15h 30 mn. Le thème " La promotion du financement de l’approche chaines de valeurs agricoles pour un meilleur positionnement des acteurs des différents maillons"
Le Débat sera modéré par Mr Modibo Coulibaly, Point Focal FOSCAR-Mali (Forum des Services et Conseil Agricole et Rural du Mali) qui est une plateforme Nationale des Acteurs maliens du Conseil Agricole et Rural .
June 2015, USAID and Fintrac
'Given the financing gap, and the fact that most farmer income is used to meet basic needs, businesses serving smallholder farmers must rely on innovative methods to enable customers to purchase products and services. Without doing so, companies risk having a limited market for their products and services.
There are a number of promising affordability and financing strategies available for companies to offer customers outside of traditional commercial lending. In many cases, companies can couple these strategies with product and service delivery to offer a comprehensive solution that increases customer adoption.
This playbook will assist partners in understanding the variety and viability of the strategies available to help customers afford a product or service and will help t... Read more
Are you a business person in the agribusiness sector and wish to be linked to buyers, suppliers and/or investors in form of equity financing, commodity financing, grants, loans or wish to have your products access markets? Do you fulfill the following requirements?
- You have a registered business or organization
- Are you in the sectors of horticulture, dairy & livestock, oil seeds and coffee
- Your business has been operational for at least 2 years
- You employ at least 10 people or work with at least 50 farmers
- Your cash flows are backed by a bank statement or audited books of accounts for the 2 years
- Your Annual return is above USD 30,000 (100,000,000 Ugx)
NB: For companies in the start up categories (have been in existence for less than 2 years) can also apply - for this category you will not need to submit your annual returns.
PAINT aims to bring together local, regional and international a... Read more
Theme: Scaling up Financing of Youth Agribusinesses for Improved Livelihoods
The AgriProFocus Uganda Innovation Communities on Access to Finance and Youth In Agribusiness (i.e. SNV, GIZ AGRUFIN, The Hunger Project, Uhuru, AMFIU, ) in collaboration with, the Northern Uganda partners; Technoserve, VSO, AVSI, Save the Children, Straight Talk Foundation, BOSCO –Uganda, SOS, TASO Gulu, WPDI-Gulu, U-Touch Uganda, WORLD EDUCATION, CPA, NUYDC-LABRA, PELUM and GNED-G are organizing to convene a two day Agribusiness Fair with an overall objective of facilitating platforms for building business & market linkages and brokering deals between youth Agrepreneurs and financial services providers including insurance companies and other value chain actors for improved agricultural production and productivity.
Day 1: Will include: The Agribusiness workshop and Exhibitions.
Day 2: Exhibition continues
and business linkages
The intended Agribusiness Linkages:
As we come to the end of celebrating the 2017 Global Money Week, saving has been pointed out as one of the most recommended practices and cultures that must be embraced by everyone worldwide. Saving is the practice of putting aside part of your current earnings for the future.
Life is full of making choices all the time, and therefore choosing to save for your future is one of the best decisions one can ever make. However, what is most important here is knowing what you want to save for and the need to find out how much it will cost. For example; one may choose to save for buying land, building a house, paying school fees, old age the list is long. Important to note though here is to set realistic saving plans, this calls for one to be patient well knowing that, it is note done once but over a period of time.
Some of the outstanding saving steps include; start saving now, save regularly, keep records of your savings... Read more
Module II: Finance and Technical Resource Mobilisation
The objective of this session is to introduce delegates to various institutions providing various types of funding for agriculture and agribusiness in Africa. The program will also discuss the importance of business plan development in securing finance and review key components of comprehensive business plans and investment memoranda. Lastly, the program will discuss the value of joint ventures, mergers and acquisition as a method of expansion and resource mobilization.
The program will feature speakers from various types of financial institutions and also delegates will be asked to write down and, in small groups, develop a short action plan indicating the type and amount of funding they need to expand their business/ meet current needs and develop a 6 – 9 month (or faster if desired by the delegate) strategy to acquire these funds. The program... Read more
€ 25.000 for the best climate business cases
The MoMo challenge 2017 has been launched! Also this year, organisations and companies that have an innovative business case focused on promoting either climate change mitigation or adaptation in a developing country can compete to receive € 25.000 seed finance for further developing their business case. Project proposals can be submitted on-line through this link. This round closes on 1 April.
MoMo is looking for promising projects that fulfill the following criteria:
* The project is focused on the clean tech, food, agro, or water sector
* The project’s intervention is aimed at a developing country
* The project contains the involvement of at least one Dutch organization
* The project is realistic and actionable
* The project is concrete and has potential for up-scaling
The Dutch private climate finance challenge ‘MoMo4Climate’ cal... Read more
FINANCEMENT DES CHAINES DE VALEUR AGRICOLE POUR L'AUTONOMISATION ÉCONOMIQUE DE LA FEMME
Le Salon du Financement de l’Agriculture de cette année a choisis comme date le 08Mars et comme thème « Le financement des chaines de valeur agricole pour l’autonomisation économique de la femme » en reconnaissance des contributions majeures de la femme malienne au développement.
Les partenaires ont salué la démarche, tout en notant que le Mali doit aller au-delà du discours en traduisant ses paroles en actes concrets, en affectant les ressources appropriées, si le pays souhaite réellement améliorer la vie des femmes. Il conviendra donc de ne plus se contenter d’adopter des politiques, mais d’innover les initiatives en faveur des femmes telles le FINAGRI qui est loin d’être une activité de femme mais qui est fortement dédiée à la femme du secteur agricole. Les Banques et Institutions de Microfinance vont profiter des rencontres B2B pour tenter de mettre en œuv... Read more
Many farming households in Sub-Saharan Africa lack access to formal credit and turn to costly coping strategies to make ends meet between harvests, including reduced food consumption, informal borrowing, short-term work on other farms, and selling off assets like livestock. Providing credit, either in the form of food or cash, could allow farming families to increase their food security and agricultural output, as farmers would not be forced to find off-farm income to feed their families between harvests, and would therefore be able to spend additional time applying fertilizer, weeding, or harvesting the crop, which may increase yields. In the long run, this gain in productivity might increase incomes by more than farmers could earn through casual labor.
In Zambia, most of the smallholder farmers depend of the inputs provided by the government under the Farmer Input Support Programme (FISP) which has provide to be inad... Read more
Recent developments in technological applications based on satellite data provide useful information to increase outreach of financial services to rural areas and for smallholder farmers. The Dutch Ministry of Foreign Affairs committed EUR 60 million for the development of applications based on geodata for the purpose of agriculture.
The Geodata for Agriculture and Water programme (G4AW) is implemented by the Netherlands Space Office (NSO). Early evidence suggests that these applications offer great promise to produce a higher and more stable crop supply of increased quality. By this, the risk profile of smallholder farmers reduces which is a... Read more
BRAC Uganda Microfinance Ltd is the largest Microfinance institution operating in Uganda covering 80 districts through 149 networked branches targeting Micro and small Entrepreneurs. BRAC boasts of promoting financial inclusion by extending financial services to the un served and underserved, now with over 212,000 borrowing clients, over 155Bn loan book with 98% recovery rate, operationally and financially self-sustaining. In order to serve our customers better with wider range of services and products, Board and Management has future plans of becoming a regulated financial institution in Uganda. We are looking for a competent person to fill the position of
Title: Credit (Loan) Officer at BRAC Uganda Microfinance Ltd
Reports to: Branch Manager
Purpose: To identify and screen potential borrowers, carry out appraisals, disbursing, monitoring, collections and keep high loan portfolio, carry out business development activities and ensure smooth and sustainabl... Read more
Cultivating New Frontiers in Agriculture (CNFA) is an international non-profit organization headquartered in Washington, D.C. and Brussels, Belgium with offices in 16 countries throughout Africa, Asia and Eastern Europe. We work with businesses, foundations, governments and communities to build customized local and global partnerships that meet the world’s growing demand for food. Since our inception in 1985, we have designed and implemented enterprise-based, agricultural development initiatives to facilitate market access, enhance agribusiness competitiveness, increase productivity and improve access to inputs and credit across 44 countries worldwide.
CNFA is preparing a proposal for an upcoming United States Agency for International Development (USAID)-funded food security project in Karamoja and we are currently seeking professional candidates to fill the position of
Position: Operations and Finance Director
Position: Gender Advisor
Locations: Karam... Read more
Why is it so difficult for African farmers to have access to loans? The study ‘Finance for Smallholders’ carried out by NpM, Platform for Inclusive Finance, together with AgriProFocus and funded by the Food & Business Knowledge Platform gives insights. The study provides 15 cases of how Dutch investors have successfully realised access to financial services for smallholder farmers.
Lesson 1: Organised farmers have better financing opportunities
Lesson 2: Learning to mitigate risks can be done
Lesson 3: Geodata can increase financial inclusion and food security
Lesson 4: We need to work towards green inclusive finance
More on these lessons learned and the full article can be read here. This article appeared in NABC Magazine edition 2017.
On 16th February 2017 NpM organises a conference on the subject ‘Geodata for inclusive finance and food.’