Agricultural value chain finance innovations and lessons

Agricultural value chain (AVC) financing innovations and lessons: Case studies in Africa presents a series of different case studies and examples of agricultural VC finance (AVCF) in sub-Sahara Africa. Agricultural VCs and AVCF have become commonly used terms but often without a basic understanding of their roles. An effective learning method is to study experience-based examples, review the results and consider how to apply the concepts in a local context. The African cases have therefore been designed as training tools to inform and stimulate innovation and application for readers and participants.

The case studies are descriptive and highlight real-life scenarios, rather than present an in-depth analysis. This is because they are intended to facilitate training on the subject as well as to inform readers interested in innovative applications of diverse models and tools of AVCF as well as related issues and challenges. Taken together, the case studies span the whole VC. They highlight, among other aspects, distinct business models, financial instruments, partnership arrangements, technology applications and risk mitigation strategies.

The document is based on first hand research prepared for the African Rural and Agricultural Credit Association (AFRACA) and the Food and Agriculture Organization of the United Nations (FAO) in late 2017 to early 2018, and updated throughout 2018. The document includes 22 case experiences. These include four in-depth highlight case studies on more complex models of AVCF. Thirteen shorter cases studies are presented to depict different innovative and best-practice applications and approaches to addressing key areas affecting agricultural VCs and financing. Five short case examples are also included, each of which illustrates at least one important model and finance issue. Questions follow each of the 22 cases and examples, and these are intended to facilitate workshop or classroom discussion, and/or to stimulate reader reflection.

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