Rural Finance and Investment Insights: October 2017
Dear RFILC members,
We are pleased to bring to your attention the World Bank report on “Financing Agribusiness in Sub-Saharan Africa: Opportunities, Challenges and Investment Models”. This study examines the financing needs of farmers and off-farm agribusiness enterprises, the role of different actors in catalyzing sustainable and inclusive agribusiness finance, and the mix of financial products and services offered. It uses multiple analytic methods, including targeted surveys of value chain actors, interviews with businesses, and desk research to get an in-depth look at the demand for and sources of agribusiness finance, and to identify constraints, challenges, and gaps based on both demand and supply constraints. On the demand side, data was obtained by interviewing actors in farming and off-farm agribusiness operating in four value chains: cashew in Côte d’Ivoire, maize in Ghana, cassava in Nigeria, and rice in Sierra Leone. Data on the supply of agribusiness financing was obtained from a literature review of agriculture and agribusiness finance; a desk review of annual reports and other relevant documents from 34 commercial banks in four countries, 21 agricultural investment funds, and 21 multinational agribusiness firms with operations in Africa and direct interviews with staff from a subsample of these organizations.
Second highlight is the policy document “Climate smart Financing for Rural MSMES: Enabling Policy Frameworks”that was produced on behalf of the G20 Global Partnership for Financial Inclusion (GPFI) and supported by the BMZ, GIZ and the World Bank Group. This document presents a synthesis of the key lessons and implications of climate change needs and solutions for micro, small and medium enterprises (MSMEs) in developing countries with an emphasis on the implications for governments and development agencies to consider. It also elaborates policy options for G20 policy makers based on the analysis, evidence from the case studies and the modeling of climate smart MSMEs. These options are designed to help overcome market failures that prevent rural MSMEs’ adaption to climate change and enable them to access climate smart financing.
Finally, the 2nd annual Back to Boulder: Strategic Response to Risk in MicrofinanceMarketsis a one-week programfor senior financial inclusion professionals which will provide participants the opportunity to customize their learning experiences in the areas of: risk governance, enhanced competitiveness and digital financial services.The event will be held from November 27 – December 1, 2017 in Washington DC,United States. For more information clickhere.
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: