Financing smallholder farmers to increase incomes and transform lives in rural communities

Published on

September 30, 2015

Opportunity International describes its rationale and model for financing smallholder farmers, incorporate lessons from its experience as a pioneer in the field:

[Download the full report] 

More than 25 percent of Africans are undernourished, and smallholder farmers make up half of the world's undernourished people and people living in extreme poverty. Experts estimate that food production across Africa must increase by 50 percent in order to feed the continents population of 1.3 billion by 2030, yet Opportunity International's own experience indicates that African farmers operate at just 40 percent of their potential capacity.

In this report Opportunity International outlines the problems facing smallholder farmers and their strategic approach to improving the situation. The report concisely presents the cyclical challenge of low yields, no collateral, and limited access to finance, that keep smallholder famers caught in a cycle of poverty and at the mercy of predatory lenders.  

Opportunity's approach is to equip smallholder farmers with the high quality seed and fertilizer inputs they need, educate them in improved farming techniques, and connect them with a network of suppliers and buyers to help grow their businesses commercially. Using technology and financial literacy materials, they engage the entire value chain to improve the long-term success of farmers.

About the Author(s)

Opportunity International
Learning Lab Partner

Opportunity International operates the Africa Growth and Innovations Initiative to promote access to loans, savings programs and other critical financial products and services by expanding delivery channels. Opportunity International also hosts the Knowledge Exchange.

Press release: Opportunity International and The MasterCard Foundation partnership

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