Kiva Labs' approach to financing agriculture

Published on

April 25, 2016

We're excited to have Kiva Labs on board as a new Learning Lab partner.  Learn how Kiva Labs uses its crowd-sourced capital model to address constraints to smallholder financing.

Kiva is known for its low-cost loan model leveraging unique capital, diverse networks, technology, and a highly visible brand.   But Kiva has also using been this model to finance agriculture.  Kiva Labs is a program to deepen the outreach and impact of financial services to the most underserved part of the market, by "crowd-sourced capital to relieve the cost contraints on new ideas."  One of Kiva Labs' focus areas is financing agriculture, an area where lack of appropriate capital has been a critical constraint to growth.

Read about Kiva's partners and perspective on Financing Agriculture

To amplify these efforts, Kiva has partnered with The MasterCard Foundation to deepen financial access and impact in rural communites of Africa by combining crowdfunded capital with capacity building of providers.  The partnership will also generate data and research to introduce, expand, and ultimately encourage others to replicate the delivery of evidence-backed loans in underserved markets.  

In addition to the summary of Kiva's approach to ag finance posted above, you can read about specific partnerships in Kiva's potfolio that serve smallholders:

  • Kiva's partnership with Asante Kenya Foundation provides smallholder farmers in Kenya trainings, seedlings, fertilizer and access to equipment to plant eucalyptus trees that can improve degraded land, ease pressure on indigenous forests, and provide long-term sustainability. Read Kiva's full blog for more information. 
  • Nuru International, takes a comprehensive approach to addressing extreme poverty in rural communties. A Kiva Field Partner, Nuru offers loans for seeds and fertilizers using a group lending model and payment cycle scheduled around the harvest season. Additionally, they offer technical assistance training to farmers across Sub-Saharan Africa. Read Kiva's full blog for a personal story on Nuru's impact. 

About the Author(s)

Kiva
Learning Lab Partner

Kiva Labs is a program to deepen the outreach and impact of financial services to the most underserved part of the market through the extension of Kiva’s proven low cost re-finance model to incentivize loan products with high impact potential. Kiva Labs presents a rich platform for learning and acceleration across a diverse set of alternative models aiming to address the challenges of poverty reduction against the backdrop of the known limitations of the standard microcredit model and slower macroeconomic growth in Africa. Kiva’s unique capital, diverse network, technology, and highly visible brand can help the financial inclusion sector better adapt to the challenges of the day.

Kiva's partnership with The MasterCard Foundation will enable us to deepen financial access and impact in Africa by providing crowdfunded capital, capacity building, data and research to introduce, expand, and ultimately encourage others to replicate the delivery of evidence-backed loans in underserved markets.

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