Investment

With the recent increase in food prices and resulting implications for food security, the urgency of increasing investment is now recognized as are the opportunities for profitable investment.

Library Resources

resource title type year resource
Report of the Expert Workshop on Guidelines for Micro-finance, Credit and Insurance for Small-scale Fisheries in Asia Report 2019 English (en)

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This resource appears in: Credit unions, Insurance, Microfinance institutions, Agricultural insurance, Asia and Pacific, Investment

The Expert Workshop on Guidelines for Micro-finance, Credit and Insurance for Small-scale Fisheries in Asia was held in Bangkok, Thailand in the period 7-9 May 2019. Rural finance, insurance and fisheries experts from Bangladesh, China, India, Indonesia, Japan, Philippines, Thailand, UK, Canada and the USA met to discuss ways to improve the access to financial services for small-scale fishers in Asia. The workshop aimed to discuss successful finance and insurance programmes in Asia for small-scale fishers, finalize practical guidelines in support of better access to financial services, and design a capacity building programme for increasing the provision of finance and insurance services to small-scale fisheries. The workshop was attended by 32 experts and was organized by the Asia-Pacific Rural and Agricultural Credit Association (APRACA) in close collaboration with FAO. The insurance and credit guidelines prepared will facilitate the implementation of the Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries in the Context of Poverty Eradication and Food Security (SSF Guidelines), as well as contribute towards achievement of Sustainable Development Goal 14. Access to finance and insurance services will enable the small-scale fishers to invest in more responsible fishing operations and technologies, reduce overfishing, contribute to fisheries management and implement climate change adaptation measures. The micro-finance, credit and insurance guidelines for small-scale fisheries have been endorsed by APRACA members in June 2019, and implementation throughout the Asian region is promoted.

Guideline and Technical Paper  -  English (en)

Use of financial diaries to understand smallholder investment finance - a cross country analysis in Mozambique, Tanzania and Pakistan Paper 2019 English (en)

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This resource appears in: Agricultural finance, Africa, Asia and Pacific, Investment, Agricultural investment, Rural Invest

Purpose: This paper evaluates the relative importance of different sources of finance for agricultural and non-agricultural investments using unique Smallholder Financial Diaries collected by CGAP in Mozambique, Pakistan, and Tanzania at the individual and household level.

Design/methodology/approach: Following the analytical framework of variance decomposition developed in Samphantharak and Townsend (2010), this study develops a method to quantify how much each cash deficit associated to investments and expenses of interest co-move with different financing sources. 

Findings: This paper finds that self-finance, rather than formal or informal finance from external providers, is the main financing source for long-term and short -term smallholder agricultural investments. Further, the paper finds that the main source of self-finance varies depending on the economic opportunities faced by smallholders, with non-agricultural income as the dominant financing source for some, while agricultural income dominating for others.

Practical implications: These findings imply that financial inclusion policies specifically targeting smallholders and the agricultural sector would benefit from enabling the development of an ecosystem of diverse financial services that respond simultaneously to both agriculture and nonagriculture needs.

Originality/values: This paper furthers our knowledge on how smallholder households are financing their agricultural investments. Moreover, it develops a new methodology and uses it exploiting a unique data set.

 

Use of Financial Diaries to Understand Smallholder Investment Finance  -  English (en)

Author María del Puerto Soria, Emilio Hernández and Riccardo Ciacci
Publisher Food and Agriculture Organization of the United Nations (FAO), Rome, Italy; Consultative Group to Assist the Poor (CGAP), Washington D.C, United States of America; Universidad Loyola Andalucía, Seville, Spain
Number of Pages 29 pages
Primary Language English (en)
Region / Country Global, Africa, Asia
Mozambique, Tanzania and Pakistan
Keywords smallholder investment finance, financial diaries, agricultural investments, non-agricultural investments, smallholders
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