Financial Access
Bridging the Gap
Assignment
Context
The Sub-Saharan African agricultural financing gap is huge with World Bank estimates exceeding USD 60 bln per year. Commercial banks barely lend to the F&A sector (loan exposure is often as little as 3% of credit portfolios). Yet for developing a modern and vibrant Agricultural sector – access to credit is imperative.
Challenge
To design a prgramme aimed at enticing banks to lend more to the F&A sector. In close cooperation with the Embassy of the Netherlands and partner ScopeInsight, a 3-year programme was designed that followed a dual approach of simultaneously working with Banks/MFIs and Producers Organizations and Agri-businesses.
Solution
The ultimate aim of the program was to bridge the gap between Financial Institutions and the Food & Agricultural Sector by creating conditions that enable an acceleration of lending to SME agri-businesses in Kenya and Uganda. Twelve interventions were designed, grouped into four clusters: Risks & Skills, Affordable Finance, Bridging the Gap and Sustainable Pipeline. Through these clusters the interventions leverage on ideas that have worked well in other sectors. F4A started in Kenya and was later replicated in Uganda under the name AgriFinancing (U).
Year
2013 - 2017
Place
Kenya, Uganda
Client
EKN
Beneficiary
Financial Access
Partners
Scope Insight
