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Small producers and access to credit: the missing link

March 12, 2014

We are all familiar with the situation: access to credit remains, for the most part, subject to the ability of the borrower to provide financial institutions with reliable collateral.

This means that it is often only the big producers who are in a position to be able to borrow in order to expand their activities, by becoming involved in productive and profitable agricultural value chains.

So what becomes of the small and medium producers? There are 33 million of them in Africa, and they represent 80% of the continent's agricultural producers [1].

What kind of financial institutions can they approach if they want to secure the resources they need to increase their production and improve their standard of living? How can they possibly hope to expand when the only thing they can be sure of is a life of unremitting labour?

In ACP regions, the matter is beyond doubt. Access to finance will have to be dealt with. Only when this condition is met can agriculture and, more specifically, efficient value chains, really take off.

  • This is also the main goal of Fin4Ag, the international conference being organised by CTA. With an appeal to "Revolutionise finance for agri-value chains", CTA and its partner, AFRACA, are calling on all the sector stakeholders and experts financiers, bankers, producer organisations to put their heads together to consider a range of proposals and initiatives aimed at:
  • making it easier for small producers to access finance for value chains;
  • streamlining the capacity of financial institutions to design and provide financial instruments suited to value chains;
  • strengthening the institutional and legal framework for agricultural finance.

The Fin4Ag conference aims to maximise the potential of the small farmers who, by becoming fully involved in profitable and productive value chains in ACP countries, will be in a position to provide a considerable boost to the economic development of their countries.

From July 14 to 18, 2014 you can take part in the Fin4Ag international conference in Nairobi, Kenya, and play your part in identifying solutions to the problem of financing agricultural value chains.

Would you like to take part in this revolution?