Green finance for agricultural SMEs
The agriculture sector plays a unique role in its contribution and exposure to climate change. Yet, as of 2020, only 3% (US$20 billion) of global climate financing was allocated to the agriculture, forestry, and land use sectors. Of this US$20 billion, a mere 4% reached value chain actors, including small and medium-sized enterprises and farmers’ organizations. Our current work under this theme aims to guide the development, deployment and management of green finance portfolios to effectively channel more financial resources to enable agricultural SMEs mitigate and adapt to the effects of climate change.
Addressing supply and demand constraints in scaling green finance for agri-SMEs
Green finance in the Latin American coffee sector: Bridging supply and demand
SAFIN | ITC Alliances for Action
Access to finance for farmers’ organizations
Farmers’ organizations play a fundamental role in many value chains by aggregating groups of producers and offering them a range of services, from access to inputs, markets, financing, storage and training. Yet, like agricultural SMEs, farmers’ organizations face difficulties in accessing funding that is adapted to their needs from traditional financial service providers, mainly due to their size, legal status, and focus on the agricultural sector. Our activities under this theme seek to better understand the current financing gaps faced by farmers’ organizations, their role in financing small-scale farmers and how to improve their access to commercial capital. SAFIN members are also collaborating to develop a financing solution that is well adapted to farmers’ organizations in different geographies.
New survey: Less than 3% of farmers’ organizations in West Africa and Asia have…
Despite the key role farmers’ organizations play in climate-related activities like reforestation…
Access to finance for farmers’ organizations: Evidence from a multi-country survey
IFAD | SAFIN | FO4ACP
Digital innovations for financing agricultural SMEs
New digital solutions, services, platforms and business models have emerged in the agriculture sector to serve clients in the most remote areas. Such services hold great potential to improve the access to finance and operational performance of agricultural SMEs and farmers’ organizations by reducing costs or increasing efficiencies. However, digital innovations are generally expensive to launch and often struggle to reach commercial sustainability. Our learning agenda on this topic will explore the key success factors of innovations that have achieved commercial viability and scale, the role of concessional capital in graduating agtech or fintech start-ups from early stage capital to growth capital and the impact of digital innovations on access to finance for agricultural SMEs.
Agritech and Fintech Providers in East and Southern Africa
IFAD | SAFIN | Palladium
“Scaling the adoption of digital innovations in agri-finance remains a challenge in Africa.”
Sanne Steemers, President, Rest of Africa at AFEX, tells us about how the adoption challenge faced by innovators…
“We need more digital financial solutions designed specifically for rural women.”
Leesa Shrader, Former Director of the Mercycorps Agrifin programme, talks about how to drive meaningful adoption…