20 Jun 2017
Responsible Agriculture Finance for Smallholder Farmers in Tanzania and Uganda

The MasterCard Foundation's Rural and Agricultural Finance team recently commissioned the Social Innovation Consulting Group to conduct primary research on input credit in Tanzania and Uganda. The research answers two key questions including: 

  1. What is input credit? Input credit is a financial product specifically designed for the purpose of purchasing inputs, such as fertilizers or seeds. Input credit can take the form of either cash or in-kind (ie: inputs are provided on credit and the farmer reimburses the provider after harvest).
  2. Why is the Foundation interested in input credit for smallholder farmers? Input credit products for farmers in Tanzania and Uganda are often much more complex in that they are ‘bundled’ with other compulsory services and fees. As a result, smallholder farmers may not fully understand the pricing structure and compulsory nature of bundled credit products, and may be taking on more risk than they can handle when engaging with providers of input credit. The objective of the study was to improve The MasterCard Foundaiton’s understanding of how agricultural finance can be delivered in a responsible way in line with the Client Protection Principles.
19 Jun 2017
TA Pulse

 Part 4 of ISF's and RAF Learning Lab's Pulse series draws insights from the evolving Technical Assistance (TA) landscape in agricultural finance. 

In 2013 the Initiative for Smallholder Finance (ISF) developed a first of its kind global view of the technical assistance (TA) landscape for smallholder farmers. This initial briefing note described a highly fragmented USD8 billion a year industry – where 70% of resources were channeled through public extension systems, 20% through donor funded programs, and 10% through the efforts of large multinational companies. As part of this research, ISF developed a typology of existing programs in the technical assistance landscape (see figure 1), which includes a list of the top ~100 international providers of TA – now publicly available on the Learning Lab’s data platform, with updated size estimates and wiki features.   

ISF’s 2014 follow up briefing note Rethinking technical assistance to unlock smallholder financing identified a gap in the way that these different forms of technical assistance were helping to facilitate access to finance for smallholder farmers. At that time, only 3% of funding for...

02 Jun 2017
GSMA feature image

A new opportunity is emerging for mobile money service providers to drive growth in rural areas by digitizing agricultural payments.

The digitization of formal procurement by agribusinesses and of agricultural subsidy disbursement by governments can serve as the entry point to financial inclusion, as it moves “real” cash to the farmer mobile wallet, reducing costs, and increasing efficiency, safety and transparency of payments. This report presents the direct revenue opportunity for mobile money service providers in sixty-nine countries from digitising business-to-person (B2P) payments and government-to-person (G2P) transfers in agriculture.

Country specific revenue opportunities along with guidance on realising the opportunity are available from the GSMA by emailing [email protected].