Agricultural Finance – Trends, Issues and Challenges

This GIZ paper provides an overview of the current state of rural finance, summarising recent advances and highlighting the remaining gaps and challenges. It is targeted at a broader audience of policy-makers, experts and practitioners in the fields of rural and agricultural development, financial sector development and microfinance who want a quick overview of the subject.

Chapter 1 defines core concepts and highlights the specific issues and challenges of financial services provision in rural areas. This is followed by a brief overview of the changing approaches to rural finance over the past few decades and a snapshot of the current status and recent trends in different regions.

Chapter 2 discusses the key areas and hotspots of rural finance development, which have been in the spotlight over the last decade and highlights the main issues, achievements and challenges ahead. These areas are grouped into three broader categories: Advances in financial products and services development (1), advances in developing institutions (2) and delivery mechanisms (3) to expand sustainable rural outreach.

Chapter 3 highlights priorities for further advancing the rural and agricultural finance agenda.

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