Creating access to agricultural finance. Based on horizontal study of Cambodia, Mali, Senegal, Tanzania, Thailand and Tunisia

Inadequate financing of the agricultural sector remains a major constraint in developing countries. This study intends to (i) draw broad lessons from the history of public participation and the support provided by international donors for agricultural finance in numerous countries; (ii) make a diagnostic of the current situation, put forward the reasons for inadequacy between supply and demand for financial services in the sector and analyse the various solutions that have been found; and (iii) make recommendations for the creation of financial products that are responsive to the agricultural sector’s needs and constraints. The study elaborates on the key elements to innovative agricultural finance: reduce delivery costs, adapt to agricultural growth patterns and cash flow cycles and use value chains to ensure proper loan repayment.

AFD - July 2012