Finance for Smallholders research: 15 case studies published

28 August, 2015

The 15 case studies of the NpM research report on smallholder farming in Africa are now available as part of the research report: "Finance for Smallholders - Opportunities for risk management by linking financial institutions and producer organisations”. Specific financing mechanisms, the cooperation between financial institutions, producer organisations and investors, and specific risk mitigation strategies have been investigated.

One of the conclusions is that Financiers need to take on their new role and focus on:

  • Building up expertise to deal with risk management in agricultural finance;
  • Engaging in financing in various levels of the food chain (mix of microfinance, agricultural finance and SME finance); and
  • Playing a pro-active role in the development of farm finance programmes in collaboration with the various actors.

The research has been carried out by the NpM Rural Finance working group. In May 2015 the findings of the research report was launched, available as a full version and as a summary report. Lastly, a description of the 15 separate case studies in four African countries (Ethiopia, Mali, Uganda and Rwanda) upon which the research results are based, is now also available.  

The NpM Rural Finance working group focuses on improving its members' activities to increase access to financial services in rural areas. In this light, the group decided in February 2014 to research which bottlenecks exist to finance smallholders, thereby identifying opportunities for risk management through linking financial institutions and producer organisations, in the countries Ethiopia, Mali, Rwanda and Uganda. The research has been carried out in cooperation with AgriProFocus and the Wageningen University and Research centre (Wageningen UR), and is funded by the Food & Business Knowledge Platform (F&BKP). The NpM Rural Finance working group consists of the following NpM members: Cordaid, FMO, Hivos, ICCO, ICCO Terrafina Microfinance (formerly: Terrafina Microfinance), Rabobank Foundation and Oxfam Novib. ICCO Terrafina Microfinance coordinates the working group. The report has been realised in coordination with other stakeholders who are active in this field on an international level: Agriterra, the European Microfinance Platform (e-MFP) and the Consultative Group to Assist the Poor (CGAP).

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