rural, agricultural and value chain finance
TRANSCRIPT
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Rural, Agricultural and
Value Chain Finance
Linda Jones
Chiang Mai, Sept 2007
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Financial Services for the Rural
Poor - CGAP
Financial Services
Rural Finance
Agricultural Finance
Agricultural CreditFinancial Services
Financial Sector
Rural Finance
Agricultural
FinanceMicrofinance
Source: CGAP Donor Brief No. 15 October 2003
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Report From RAF Conference –
Rome, March 2007
• Conference on rural and
agricultural finance
• Sponsored by FAO, IFAD, Ford
• Leading experts – researchers,
practitioners, government,
bankers
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Emerging Themes in RAF*
• Regional diversity cannot be
generalized
• Research and services must be
demand-driven
• Institutional diversity equals
increased access
From Jones, SED Journal (EDMJ) Sept 2007
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Emerging Themes in RAF (2)
• Are we reaching the very poor
and do we care?
• Value chain approaches offer
potential for impact
• Innovation in products /
services is a must
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Emerging Themes in RAF (3)
• Define role of government
• Ignore gender at peril
• Understand and manage risks
• Need greater sharing of
information and research
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Fitting VC Finance into the Picture
Financial Services
Financial Services
Rural Finance
Agricultural Finance
Microfinance
Agricultural CreditFinancial Services
Financial Services
Rural Finance
Agricultural FinanceMicrofinance
Value Chain Finance
Adapted from: CGAP Donor Brief No. 15 October 2003
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Financing the Value Chain
• Not just finance within the value
chain
• Financial services needed at all
levels to ensure healthy
functioning of value chain
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Value Chain Finance
MSME Finance
Commercial Banks, MFIs, CUs
Consumer
Banking
Commercial Banks, MFIs
MFIs, CUs, Coops
Commercial Banks, MFIs
Producers/
Groups
Suppliers
Wholesalers
Retailers
Value Chain
Final Consumers
Value Chain Finance MSME Finance
Microfinance
Support
Services and
Products
MSME
FinanceCommercial
Banks, MFIs
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Financing the Value Chain
- Tajikistan
• Horticulture subsector project
• Microcredit to smallholders
• SME finance to processors and
suppliers
• Matching
grant facility
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Financing the Value Chain
- Challenges
• Complexity of programming - systems
• Implementing agency capacity
• Local capacity
• VC Players
• Donor buy-in
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Thank you!