The tenth briefing note in a series from the Initiative for Smallholder Finance explores three channels through which value chain financing models can be delivered and identifies how these models can group “enablers” to best serve smallholders.
Agro-enterprises within the agricultural value chain can play a crucial role as aggregation points for the delivery of financial services to smallholder farmers. But effective value chain financing models are hard to get right; they require agro-enterprises and financial institutions to work together and balance their respective capabilities.
To help value chain financing unlock credit for smallholders in difficult market environments, this research recommends the following roles for key actors in the international community:
Donors:
Investors:
Agro-enterprises:
ISF is an advisory group committed to transforming rural economies by delivering partnerships and investment structures that promote financial inclusion for rural enterprises and smallholder farmers. Combining industry-leading research with hands-on technical expertise, ISF develops practical, profitable, and sustainable financial solutions.
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