Assessment of Long-term Finance Providers for Smalland Medium Agribusinesses : Stocktaking, Lessons, and Case Studies

Topic :

Agricultural transformation that involves the production of high-value food products and post-harvest processing is high on the policy agenda in many developing countries. A surge in the demand for high value and processed food products observed in Asia and Latin America is also happening in Africa (Reardon and others 2003, 2013). This profound change is attributable to the growth of the middle-income population spurred by economic development, urbanization, and corresponding dietary changes. Agribusinesses involved in production, processing, and trading have profitable growth opportunities in many regions, especially along with the high-value crops. Governments are eager to promote such businesses that can generate employment opportunities for the rural poor and youth. These businesses also promote exports and increase tax revenues.

The study is structured as follows: The introduction contains a brief discussion of the importance of LT agribusiness SME finance. The second section provides a stocktaking analysis covering commercial and development banks, investment funds, and agribusiness companies. It then concludes with a comparative analysis. The concluding section offers overall observations, policy recommendations and suggestions for future research. In the final section, there are five in-depth case studies of distinct types of LT finance providers along with lessons learned.

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