Rural Invest

Library Resources

resource title type year resource
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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Rural finance in Sierra Leone strengthened by IFAD projects – new report Report 2019

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This resource appears in: Rural Financial Services, Rural Financial Services: General, Rural outreach, Rural Invest

Rural development projects financed and supported by the International Fund for Agricultural Development (IFAD) expanded access to rural finance and increased agricultural production in Sierra Leone, despite the civil war (1991-2002) and Ebola epidemic (2014-2015), according to a new report released on 27 November 2019. The report prepared by the Independent Office of Evaluation of IFAD (IOE), reviews the past 17 years of work that IFAD carried out in partnership with the government of Sierra Leone, from 2003 to 2019.

According to the report’s findings, IFAD increased the reach of rural finance – including to remote areas – to an even larger group than originally planned. Over 280,000 households were reached through rural finance initiatives in the Northern, Southern and Eastern Provinces - more than 120 per cent of the envisaged target. 

Publisher IFAD
Number of Pages 64 pages
Primary Language English (en)
Region / Country Global
Sierra Leone
Keywords Rural Finance, Financial Institutions, Investments
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Investing in rural people in Niger 2018

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This resource appears in: Rural Invest

Niger covers a landlocked 1,267,000 km² tract of the Sahel north of Nigeria. With a poverty rate of 48.9 per cent and income per capita of US$420, Niger is one of the world’s poorest nations. In 2015, it ranked last among 188 countries measured by the United Nations Human Development Index

Investing in inclusive rural transformation: Innovative approaches to financing Conference Proceedings 2017 English (en)

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This resource appears in: Rural Invest

The three-day international conference co-organized by  the International Fund for Agricultural Development (IFAD) and the Italian Ministry of Economy and Finance, with the Brookings Institutions and the University of Warwick, “Investing in Inclusive Rural Transformation: Innovative approaches to financing” took place in Rome from 25-27 January. This conference aimed to fill the gap in the comprehension and sharing of lessons learned to support innovative efforts in the areas of rural and agri-food finance and agri-food investments. Also, the conference objectives were: to advance the understanding about opportunities and challenges in mobilizing finance for inclusive and sustainable rural transformation; to Identify new, effective and efficient instruments and partnerships to finance smallholder agriculture development and rural SMEs; and to lay out a country-differentiated, evidence-based policy and institutional agenda to move forward in boosting financing for inclusive rural investments. The background documents, agenda, participants and keynote videos of the event are available below.

Conference website  -  English (en)

Fondos de Inversión Rural (FIR) Paper 2015

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This resource appears in: Rural Invest

La escasa oferta de instituciones financieras bolivianas para financiamiento de pequeños agricultores, impulsó a PRO-RURAL a idear y consolidar un esquema crediticio innovador denominado FIR. A lo largo de este estudio de caso, se observa que la innovación contribuye efectivamente en ampliar el radio de acción de servicios crediticios orientados a la producción de unidades económicas de pequeña escala basadas en la agricultura. Los FIR han probado ser un esquema eficiente en las microfinanzas rurales, en la medida que brindan una gama de beneficios a todos los actores involucrados en este modelo, ventajas que se sustentan principalmente en el hecho de que los FIR son un mecanismo que permite: diseñar y ofrecer productos crediticios idóneos a las condiciones y capacidades productivas de su clientela; reducir los costos de transacción del FIR y de los prestatarios; establecer formas de garantía morales a estos clientes, con lo que son motivados al cumplimiento de sus préstamos. 

Midiendo el riesgo de inversión en emprendimientos rurales: sentando bases para potenciar inversiones responsables a riesgo compartido en Bolivia Paper 2012

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This resource appears in: Rural Invest

El documento presenta el diseño y la validación de una herramienta de evaluación del riesgo de inversión con visión social ligado en emprendimientos rurales, que consiste en la identificación de los factores causantes de los indicadores de riesgo tradicionalmente observados, permitiendo jerarquizarlos y ordenarlos de manera objetiva, facilitando la toma de decisiones por parte de inversionistas y aportando al desarrollo sostenible e inclusivo de nuestra sociedad. Se demuestra que esta herramienta permite evaluar el riesgo de inversión en emprendimientos rurales permitiendo flexibilizar la exigencia de colaterales como mecanismo de protección para el inversor. Esta técnica es aplicada a 42 emprendimientos rurales divididos en dos grupos: emprendimientos agrícolas y emprendimientos agroindustriales. Se constatan diferencias importantes entre los factores de riesgo ligados a emprendimientos dedicados a la producción agrícola y aquellos ligados a emprendimientos que transforman productos agrícolas. Los beneficios sociales que generan, sin embargo tienen más aspectos comunes.

Author Ricardo Nogales Carvajal y Pamela Córdova Olivera
Publisher Centro de Investigación Universidad Privada Boliviana
Number of Pages 37
Primary Language Spanish (es)
Region / Country Global, South America
Bolivia
Keywords Riesgo, Inversión rural, Bolivia
Related Resources
Pourquoi investir dans la microfinance rurale? Paper 2010 French (fr)

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This resource appears in: Rural Invest

Document publié dans le cadre du 16ème Midi de la microfinance organisé par ADA en collaboration avec SOS Faim.

  • Zoom Microfinance - Desservir les zones rurales les plus reculées : Buusaa Gonofaa (Ethiopie)
  • Zoom Microfinance - La banque des paysans, aux conditions des paysans
  • Défis sud - Une nouvelle finance solidaire au Mali
  • Microfinance et investissement : Le cas du CECAM à Madagascar
  • Microfinance et Agriculture : Quel avenir pour les paysans des pays ACP ?
  • Autres ressources documentaires sur le thème de la finance rurale
Lien vers la publication  -  French (fr)

Rural Invest Educational English (en)

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This resource appears in: Rural Invest

RuralInvest is an FAO developed free multilingual toolkit that comprises training courses, manuals and custom developed software which provides the necessary support to prepare successful Rural Development projects.

RuralInvest is more than just software. It is an approach on how to create successful Rural Development projects. RuralInvest is provided by FAO free of charge, though some costs are associated with the training.

It is applicable for any agency, project, organization or private investor managing funds for small and medium scale agricultural and rural investments (both income generating and social activities).

Currently, RuralInvest capacity is only supported for use by agencies, organizations or projects, not for individual users.

Rural Invest  -  English (en)

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