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Finance in Value Chain Analysis – a synthesis paper

The objective of this paper is to present a systematic approach to incorporating finance in value chain analysis (VCA). As the lifeblood in the value chain, finance is often one of the critical constraints to economic growth. Understanding the financial structures both within and between firms in the value chain is necessary for the development of upgrading strategies that effectively increase competitiveness. The paper synthesizes some of the more pertinent literature on the topic and adds to this some key insights gained from a recent set of case-studies completed under USAID’s AMAP FSKG project.

This report has two main components. First, the value chain analysis approach is summarized to provide the contextual framework for the report. Second, the set of case-studies developed under the AMAP FSKG projects are summarized and used to support a systematic discussion on the various issues relevant to the analysis of finance in a value chain context. An annex provides a list of recommended key informant questions.