Financing Agribusiness in Sub-Saharan Africa: Opportunities, Challenges and Investment Models
This study examines the financing needs of farmers and off-farm agribusiness enterprises, the role of different actors in catalyzing sustainable and inclusive agribusiness finance, and the mix of financial products and services offered. It uses multiple analytic methods, including targeted surveys of value chain actors, interviews with businesses, and desk research to get an in-depth look at the demand for and sources of agribusiness finance, and to identify constraints, challenges, and gaps based on both demand and supply constraints. On the demand side, data was obtained by interviewing actors in farming and off-farm agribusiness operating in four value chains: cashew in Côte d’Ivoire, maize in Ghana, cassava in Nigeria, and rice in Sierra Leone. Data on the supply of agribusiness financing was obtained from a literature review of agriculture and agribusiness finance; a desk review of annual reports and other relevant documents from 34 commercial banks in four countries, 21 agricultural investment funds, and 21 multinational agribusiness firms with operations in Africa and direct interviews with staff from a subsample of these organizations.