Financial instruments

Enabling Environment

The traditional loan model is not ideal here since it is predicated on collateral requirements and monthly amortised repayments, neither of which can be accommodated in the sweet potato model. Working capital advances against sales contracts, with an adjusted repayment period of four to six months would fit better with the production cycle. Most farmers are in remote or isolated locations which underlines the need for new financial models that consider the strengthening of farmer organisations. It is important to realise that the sweet potato sector offers investment opportunities for the short, medium and long term.