Posted By in AgriProFocus Netherlands
Posted 21 July 2017 at 01:21

Why is it so difficult for African farmers to have access to loans?

Check the study on Finance for Smallholders and the workshops held in different country networks

together with NpM Platform for Inclusive Finance and the Food & Business Knowledge Platform

Josien Sluijs, director of NpM, Platform for Inclusive Finance:

“Why is it so difficult for African farmers to have access to loans? If farmers are organised in formal groups, it is much easier for a financial institution to give a loan. The study ‘Finance for Smallholders’, carried out together with AgriProFocus and funded by the Food & Business Knowledge Platform gives insights. The study provides 14 models in Ethiopia, Mali, Rwanda and Uganda, in which NpM or AgriProFocus have managed to successfully finance farmers. AgriProFocus networks in Kenya, Uganda, Tanzania, Benin and Mali, in cooperation with NpM, organised expert meetings to discuss the outcomes of the research. The meetings included a broad delegation of farming organizations, (micro)finance institutions, banks, national and international development organizations, insurance companies, government officials and consultants. The overall conclusion of the expert meeting participants is that 1) there is an urgent need for appropriate, flexible and timely financial services tailored to the production cycle of small farmers, 2) producer organizations play a key role in access to markets, training and finance, 3) government support is needed through regulatory framework and stimulation of innovation and 4) donors and investors are to take a facilitating role, also supporting innovation, partnership and high risk investments.

I was overwhelmed with the response we received during these meetings. In Uganda a participant from the Ministry of Finance indicated he wanted to use our research for policy making. This is exactly what we meant to achieve!”

Lisette van Benthum, Network Facilitator Access to Finance, AgriProFocus:

“Our network includes stakeholders that implement innovative financing models. In cooperation with NpM and F&BKP we were able to study these for learning and inspiration of the entire member network. Our strength lies in linking, learning from the outcomes and creating leadership opportunities regarding the way forward.

In a workshop during the ‘Africa Works’ conference by NABC in November 2016 in Amsterdam we shared the results from these expert meetings with 40 participants. To further build upon these results, the participants were asked to be that day’s expert panel and discuss amongst each other three burning issues. All the interesting ideas and questions that came up in the workshop will be used in the future activities of both AgriProFocus, NpM and F&BKP regarding Access to Finance.”

Read more about country specific workshops and outcomes:

Benin 

Uganda

Mali

Kenya

Ethiopia

Anne Marie Kortleve

I can imagine MUWANGUZI SAMUEL When I read the overall conclusion of the participants of the workshops I see there is an urgent need for appropriate, flexible and timely financial services tailored to the production cycle of small farmers and that government support is needed through a regulatory framework and stimulation of innovation and finally that donors and investors are to take a facilitating role, also supporting innovation, partnership and high risk investments. Do you agree or do you ahve other suggestions?

2 months 3 weeks ago

Akibodé Djodji

in Mali this formidable work was restored by

The workshop to share the results of the study entitled "FINANCES FOR SMALL PRODUCERS - RISK MANAGEMENT OPPORTUNITIES BETWEEN FINANCIAL INSTITUTIONS AND PRODUCER ORGANIZATIONS"

2 months 3 weeks ago

Akibodé Djodji Nous restons convaincus que les résultats de ses études serviront de base à l'amélioration des différentes politiques et stratégies de facilitation d'accès au crédit des petits producteurs agricoles.  Vous pouvez suivre la vidéo de l'atelier de restitution de l'étude en cliquant sur ce lien  https://agriprofocus.com/post/587cac31a93f251491aac11a        MERCI, on est ensemble

2 months 3 weeks ago

Julius. M 1-Being a sector reliant on weather, they are unsure of the harvest (which harvest they also use to repay the loan after selling). 


2-High interest rates. 

3-Some lenders want a farmer deal in/grow a specific crop (like telling a farmer in Northern Uganda to grow cabbage). Automatically he/she won't get the loan.

2 months 3 weeks ago

Anne Marie Kortleve Thanks for sharing Julius! Lisette van Benthum, can you add anything to the discussion?

2 months 3 weeks ago