Transcript
farming means business
Bridging the Gapin Agricultural Finance
farming means business 2
1.8
3.8
5.8
7.8
9.8
1900 1925 1950 1975 2000 2025 2050
Po
pu
lati
on
(b
illio
ns)
World Population Forecast
0.2
0.3
0.4
0.5
0.6
1950 1960 1970 1980 1990 2000 2010 2020Hec
tare
s o
f A
rab
le L
and
per
per
son
Year
Diminishing Arable Land
Page 2
Global Challenges
farming means business
Dutch Government
Private SectorPPP
Objective: To increase lending from financial institutions
to Agribusiness SMEs and POs
Innovative products / risk mitigation
Agri-finance know how and expertise
Active pipeline building
Agribusiness Graduation programs
Coordination, transparency, sharing
Page 4
Finance 4 Agriculture
farming means businessPage 4
Data supplied by the Kenya Bankers Association
Agr
icu
ltu
re
Agr
icu
ltu
re
Agricultural Finance Gap
Very low
farming means businessPage 6
Why Banks do not like Agriculture
To entice banks to lend morewe have to address theirspecific risk issues and costconcerns.
farming means business
Bridging the GAP
The 12 F4A projects are strongly interrelated and designed to leverage off each otherand work towards a common goal: BRIDGING THE GAP in agricultural finance.
Page 9
F4A = 12 interlinked projects
farming means business
Bridging the GapSupply side Demand side
Strategy: “A coordinated approach around a common language”
Mission:
“To increase lending from financial institutions to agribusiness SMEs and POs”
Barriers
Capacity Building individual FI’s
Agri-Finance Training
Agri Credit Scoring tools
Guarantees & Insurance solutions
New FinanceCompany
Supply Chain finance
Assessments
AgriPortal
Basic Agribusiness Graduation
Advanced Agribusiness Graduation
ATICMulti-
stakeholder
Page 9
…. Integrated Approach
farming means businessPage 10
…. Tangible solutions for real problems
farming means business
Includes
Hands-on l/t technical assistance at selected partner Banks,
MFIs and/or SACCOs;
Up to 50% grant money available on a matching fund basis.
2. Agri-Finance training & community building
3. Credit scoring
4. Guarantees & insurance
6. Supply Chain Finance
7. Assessments of Agribusinesses
Objective
To professionalize the capacity of financial institutions (FIs) in
providing financial services to the agricultural sector, in a
responsible & sustainable manner.
Main correlation with other
F4A Projects
Page 12
1. Capacity Building (Financial Institutions)
Execution Partner: Financial Access
farming means business
Main correlation with other
F4A Projects
Page 13
Execution Partner: Financial Access
2. Agri-Finance Training + Community Building
Objective
To enhance and exchange knowledge and experience through-
out the Agri-Finance banking community.
Includes
Workshops, trainings, seminars and presentations on new
developments in Agri-Finance;
Social media community building, bringing together
Financiers, Investors, F&A stakeholders, NGOs, and key
government representatives.
1. Capacity building (financial institutions)
6. Supply Chain Finance
7. Assessments of Agribusinesses
10. Advanced Agribusiness Graduation
11. Multi-stakeholder Alignment
farming means business
Main correlation with other
F4A Projects
Includes
Improving/streamlining workflow and processes of credit
underwriting;
Improving credit scoring on the basis of analysis of the
existing loans and past loan portfolio of the FIs;
Bringing down the overall cost of credit delivery.
Objective
To introduce a credit scoring tool to allow FIs to lend to
smallholders with lower internal credit assessment and
processing costs per loan.
1. Capacity building (financial institutions)
2. Agri-Finance training & community building
5. NBFI (New Finance Company)
7. Assessments of Agribusinesses
10. Advanced Agribusiness Graduation
Page 14
3. Credit Scoring + Workflow
Execution Partner: Financial Access
farming means business
Main correlation with other
F4A Projects
Includes
Bridging knowledge gaps at the F4A participating FIs
regarding agricultural risk mitigation instruments like
guarantees, insurance and hedging instruments;
Increase the general awareness and knowledge of these
instruments via a dedicated resource center;
1. Capacity building (financial institutions)
2. Agri-Finance training & community building
5. NBFI (New Finance Company)
10. Advanced Agribusiness Graduation
11. Multi-stakeholder Alignment
Objective
To establish a broker function between providers of guarantees
and insurance and the F4A participating financial institutions
active in agricultural finance.
Page 15
4. Guarantees & Insurance
Execution Partner: Financial Access
farming means business
Main correlation with other
F4A Projects
Page 13
Includes
Greenfield non-deposit taking financing vehicle targeting
the Missing Middle in agriculture;
Client target includes emerging farmers and POs in need
of mechanization and scaling-up;
Project entails all scoping and set-up costs associated
with starting a new NBFI.
3. Credit scoring
4. Guarantees and Insurance
7. Assessments of Agribusinesses
8. Agri-Portal
10. Advanced Agribusiness Graduation
Objective
A USD 25 million financing vehicle, ready to start operations in
2015, with the objective to have executed 250 agricultural
loans in 36 months after inception.
5. New Finance Company (Missing Middle)
Execution Partner: Financial Access
farming means businessPage 14
Main correlation with other
F4A Projects
Includes
Setting up an automated environment to enable FIs to
conduct very high volume invoice discounting transactions
(a.k.a. reverse factoring);
Liquidity is injected into Agri- and SME sectors with
corresponding credit risk shifting to corporate Chain
Captains as ultimate off-takers.
1. Capacity building (financial institutions)
2. Agri-Finance training
3. Guarantees & insurance
7. Assessments of Agribusinesses
10. Advanced Agribusiness Graduation
Objective
Introducing ‘early payment solutions’ to commercial banks and
financial institutions, which will be benefitting Kenyan
suppliers (SMEs) and piloting a Supply Chain transaction
platform that provides execution and marketing services.
6. Supply Chain Finance - Platform
Execution Partner: Financial Access
farming means businessPage 15
Main correlation with other
F4A Projects
Includes
Conducting 500 assessments on POs on their level of
professionalism and creditworthiness
The assessment profiles are uploaded onto the AgriPortal
to broker businesses deals.
1. Capacity building (financial institutions)
2. Agri-Finance training and community building
4. NBFI (New Finance Company)
8. Agri-Portal
10. Advanced Agribusiness Graduation
Objective
Bridging the information gap between financial institutions and
the agricultural sector through agricultural credit ratings,
based on SCOPEinsight’s Scoring of Organizational Performance
(SCOPE) methodology.
7. Assessment of Agribusinesses
Execution Partner: SCOPEinsight
farming means business
Main correlation with other
F4A Projects
Includes
Brokerage function between agribusinesses, financial
institutions and BDS provider and input suppliers through
SCOPE rating profiles
A library function with Kenya specific information about
agricultural value chains and other relevant best practice
agri-finance information.
1. Capacity building (financial institutions)
2. Agri-Finance training and community building
4. Guarantees and Insurance
7. Assessments of Agribusinesses
10. Advanced Agribusiness Graduation
Objective
The development of a digital platform that functions as an
online market place and one-stop shop for agricultural finance.
Page 19
8. On-line Portal
Execution Partner: SCOPEinsight
farming means businessPage 17
Main correlation with other
F4A Projects
Includes
The development of a BDS curriculum that is based on the
9 SCOPE score chapters and that can be offered to POs on
the basis of their capacity building needs.
1. Capacity building (financial institutions)
2. Agri-Finance training and community building
5. NBFI (New Finance Company)
7. Assessments of Agribusinesses
10. Advanced Agribusiness Graduation
Objective
To establish aligned capacity building programs that are based
on the SCOPEinsight rating methodology, that can deliver a
pipeline of professional and bankable POs in a shorter period of
time, against lower costs and with a natural TA exit.
9. Basic Agri-business Graduation
Execution Partner: SCOPEinsight
farming means businessPage 18
Main correlation with other
F4A Projects
Includes
Creation of an infrastructure and establishment of a
standardized process to facilitate advanced graduation.
A mapping of BDS providers (experts and consultants) able
to execute such business transformation services in the
agricultural sector.
1. Capacity building (financial institutions)
2. Agri-Finance training and community building
5. NBFI (New Finance Company)
7. Assessments of Agribusinesses
9. Basic Agribusiness Graduation
Objective
To ensure that almost bankable POs (with a score ≥ 4 in the
SCOPE assessment) and that have a financing need, are
supported (against a fee) with their last steps towards
bankability by BDS experts or consultants.
Execution Partner: SCOPEinsight
10. Advanced Agribusiness Graduation
farming means businessPage 19
Main correlation with other
F4A Projects
Includes
Following the F4A project, several concrete challenges
and topics will be identified that require multi-
stakeholder agreement to move further, which will be
discussed during Steering- and Working Groups.
1. Capacity building (financial institutions)
2. Agri-Finance training and community building
5. NBFI (New Finance Company)
8. Agri-Portal
12. ATIC
Objective
To derive at a set of agreed and practical solutions for
identified barriers in the agricultural finance sector in Kenya
by key stakeholders in the F4A project (financial institutions,
NGOs, donors, POs and governmental organizations).
11. Multi-stakeholder Platform
Execution Partner: SCOPEinsight
farming means business
Main correlation with other
F4A Projects
Page 20
Includes
ATIC is a proposed one-stop rural farm centre concept
hosting agro-dealers, equipment traders, financial
services, hardware stores, extension services etc.
Training services, demonstration plots, warehousing
facilities and collateral management services.
2. Agri-Finance training and community building
5. NBFI (New Finance company)
8. Agri-Portal
10. Advanced Agribusiness Graduation
11. Multi-stakeholder Alignment
Objective
Development of a concept proposal and resource mobilization
for proposed chain of one-stop agri-malls (ATIC) which provides
a physical infrastructure for stakeholders in agriculture to
conduct business and will function as a physical marketplace.
12. ATIC : Agricultural Trade & Innovation Centre
Execution Partner: Financial Access
farming means business
Contact
Please contact us for more information:
Financial AccessMaarten SusanProgramme Managermaarten.susan@financialxs.com
Page 24
top related