Rural Finance and Investment Insights: September 2020
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Dear RFILC members,
Do you know that there are only less than 100 days left in 2020?
To start our this month's highlight, we would like to share with you a recent report on the constraints and the opportunities for remittance service providers to reach forcibly displaced people in the Democratic Republic of Congo, or DRC. This report is based on a study commissioned by the United Nations High Commissioner on Refugees (UNHCR) and the United Nations Capital Development Fund (UNCDF). The survey team explores remittance usage by people in 656 households based in refugee camps and the host communities and rural areas around them. Interviews were conducted in the DRC with representatives from financial institutions, mobile operators, regulators, and development agencies. The report concludes with recommended specific steps that policymakers can take to spur providers to offer remittance services to this population, and that providers can take to spur prospective customers to shift from informal to formal channels.
The disruption of fishing activities caused by COVID-19 pandemic has not only caused the income loss of fishers but have affected the full fish value chain as well as the availability of fish for human consumption worldwide. Financial risks at all stages of the value chain have increased as a result of the pandemic, including reduce cash flow, reduced capacity to repay loans and meet financial obligations. Therefore, Food and Agriculture Organization of the United Nations (FAO) has prepared an information note discussing the role of finance in mitigating COVID-19 impacts in fisheries. It provides recommendations in support of a rapid recovery from the COVID-19 economic impact on the fisheries sector and provides entry points for the financial sector to contribute to building back a better and more resilient fisheries sector.
On the other hand, agricultural insurers in remote areas are often faced with stark choices concerning onboarding of farmers, monitoring the season's progress and conducting claim assessments. Usually, insurers have insufficient visibility into the fields until the claim occurs, and there are substantial costs associated with fraud or other data quality issues driven by moral hazard aspects. To close this month's highlights, we would like to invite you to an exciting webinar on Remote sensing solutions and digitization in agricultural finance hosted by Making Finance Work for Africa (MFW4A), FSD Africa and Agritask. This webinar session will allow panellists to discuss how precision agriculture technologies can be used to improve visibility through the crop season.
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: