Our October’s insight issue is firstly looking at the Food and Agriculture Organization of United Nations case study “Innovations for Inclusive Agricultural Finance and Risk Mitigation Mechanisms”. This case study documents an innovative model for providing financial services to poorer rural households dependent on agriculture – the Tamwil El Fellah (TEF) model developed by the Groupe Crédit Agricole du Maroc (GCAM – the Morocco Agricultural Credit Group). TEF has built on the long-standing experience of financing the agriculture sector and the network of agencies and human resources of GCAM, putting in place its own business model with risk management mechanisms adapted to its specific client segment: farmers with small and medium-scale agribusinesses. This study aims to highlight important principles that can be applied by financial institutions and supporting organizations to promote inclusive rural and agricultural financial services the context of developing countries.
Secondly, the CGAP paper “The Role of Financial Services in Reducing Hunger” summarizes research supporting several mechanisms through which financial services can facilitate progress toward the Sustainable Development Goals (SDGs). Improving access to financial services can help farmers make profitable investments that increase their yields. Research shows that financial products that are designed for the specific needs of farmers are effective in increasing input use and raising outputs. The ability to smooth income enabled farmers to make bigger and, in some cases, more profitable investments that increased output and food consumption. Therefore, designing products around farmers’ specific financial needs can have big effects at both macro and micro levels.
Finally, European Microfinance Week (EMW) will take place from 16th until 18th November 2016 in Luxembourg. EMW is the major annual event of the microfinance industry hosting high level and in-depth discussions by all sectors of the European microfinance community working in developing countries. EMW welcomes over 400 top professionals in the industry. This year program will include plenary session on “Digital Finance: Full Inclusion or Empty Promise?”. In addition, workshops with leading speakers will also feature on the topics such as green microfinance, microinsurance, risk management, rural finance, social performance, investments, remittances and financial education.
The Rural Finance and Investment Learning Centre is a part of the CABFIN Partnership Project which aims to promote and facilitate capacity building in rural finance. The concerns of rural finance are to ensure that people living in rural areas have access to financial services such as deposit and money transfer facilities, insurance and loan products. Effective use of these services can help to improve livelihoods and reduce rural poverty. The following CABFIN Partners have provided financial support to the RFILC: