CSAF State of the Sector 2018

Topic :

The Council on Smallholder Agriculture Finance (CSAF) is a pre-competitive alliance of 12 financial institutions that seek to expand the market and develop industry standards for lending to small and medium enterprises (SMEs) in the agriculture sector. In 2014, one of the CSAF members made a US$200,000 working capital loan to a sorghum processing enterprise in East Africa. The loan was made in local currency at the going market rate for loans of this size in other sectors. The borrower, in turn, used the loan to purchase drought-resistant sorghum from several thousand smallholder farmers, many of whom had lost their maize crop in prior seasons because of drought. The business successfully repaid the loan 13 months later and, by linking the farmers to a ready market, generated higher and more reliable incomes and food security for thousands of vulnerable families.

Read the report  to learn more about the evolving credit market for agricultural SMEs, such as:

  • Growth and risk trends for agricultural SME lending 
  • Constraints to market growth and strategies for unlocking impact
  • CSAF’s collaboration with MIX to develop an online and publicly accessible platform where users can track trends and create customised reports on annual lending activity in the agricultural SME finance market, expected to launch in early 2019.

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