Latest news

CTA

Promoting inclusive finance models for farmers in Africa

Brussels, 24th November 2014

November 24, 2014

The meeting on 24th November 2014 in Brussels is aimed at discussing the first set of Value Chain Finance (VCF) models selected by Regional Farmers Organisations (RFOs), and the various ways to support their strategy for upscaling.

The meeting will also define key strategic partnerships in support of the Panafrican Farmer's Organisation (PAFO) and RFOs value chain finance programme.

The Brussels Briefing to be held the next day, on 25th November, will take stock of the outcomes of this meeting.

Background

Building upon earlier CTA work for the international conferences on Making the Connection: Value Chains for Transforming Smallholder Agriculture, the Brussels Briefing on Value Chain Finance and Ict4ag, PAFO, CTA and the African Union Commission in collaboration with AFRACA, organised the 2nd continental Briefing on promoting inclusive finance models for farmers in Africa in Nairobi, Kenya, in July 2014. The key objectives of the continental Briefing were to highlight the key opportunities in VCF for farmer’s organisations and to provide space for sharing experiences and innovations on VCF. The meeting also aimed to facilitate networking among development partners. The various results of this Briefing were incorporated into the CTA/AFRACA Conference on Revolutionising finance for agri-value chains, also held in Nairobi, in July 2014.

PAFO action plan

PAFO members (RFOs), developed an action plan to equip selected farmer organisations with the capacity to increase access to financial services for their members, including capacity building and training in financial literacy as a strategy to increase farmer’s benefits across the value chain.

Key activities during the meeting will include:

  • Identify Farmer Organisations to equip them with increased capacity or support for business strategy;
  • Define selection criteria for the farmer organisations;
    • Existing business operations (active in value chain)
    • Access to finance a limitation
    • Room for capacity building
    • Value chain partnerships
  • Identify  AFRACA  member  institutions  (experienced  rural  agricultural  lending  financial institutions);
  • Secure funding for technical support and basic infrastructure;
  • Secure seed capital/challenge fund to initiate investment;
  • Identify expert to support implementation.