PROJECT DESCRIPTION

The agricultural sector plays a key role in the economic development of many African countries. However, farms and agri-based enterprises in rural areas in Africa are not very market-oriented and often have no access to adequate financial services which results in the lack of investments in agricultural production, processing and marketing. Farms and agri-based enterprises have a very limited potential to contribute to the development of the rural economies. Supply of financial services to the agricultural sector in rural areas is not sufficient. Financial institutions need to innovate to provide financial services, tailored to the business models and needs of farms and agri-based enterprises.

The project aims at bridging the gap between the specific financial needs of the agricultural sector (demand side) and the insufficient provision of financial services given to it on the supply side. In a concerted approach that combines interventions on the ‘demand’ and ‘supply’ side, the main objective is to improve the supply of financial services adapted to the business models of farms and agri-based enterprises. To achieve this objective, the global project uses an overall conceptual approach that is adjusted to the respective countries and focuses on three project components: 1. (Global) New knowledge products to improve the supply of adapted financial service for farms and agri-based rural enterprises are developed for both supply- and demand side; 2. (Demand side) Expertise of farmers and managers of agri-based rural enterprises on the use of adapted financial services has increased; 3. (Supply side) Capacities of selected financial institutions for the development of adapted financial services for farms and agri-based enterprises have increased.

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