Financial Systems for
International Finance Corporation
Alliance for a Green Revolution in Africa
Africa Development Bank
The World Bank
Financial needs and access to financial services vary widely depending on the nature of smallholder farming.
Value chain financing is widely used as a risk mitigation mechanism in providing short-term finance in tight value chains.
Diffusion and development of ICT has been changing the agricultural finance landscape in Africa quickly. Many smallholder farmers gained access to payment services through mobile telephones, which are also used in agricultural transactions.
Among other risk mitigation tools, agricultural insurance products have been tested in many African countries to mitigate high-severity low-frequency agricultural risks.
An enabling environment, with smart financial regulations, targeted and effective agricultural finance policies, and well-established financial infrastructure, is essential to ensure a well-functioning financial system that promotes the development of agricultural finance.