Seeking innovation and sustainability in agricultural financing

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The FARA Social Reporters Blog

Smallholder farmers all over Africa play a major role in food production, and a majority of these smallholders can be found in rural areas.  Rural agricultural workers are sadly the poorest in Africa, with a poverty rate of about 50% across the continent. This statistic in mind, it is crucial that financing is tailored to meet the needs of smallholder farmers. These farmers have particular needs and do not have access to the finance that is available to large scale or commercial farmers.

Despite this fact, agriculture still employs over 65% the population and has been growing at about 3.3.% each year since the year 2000. With increasing population, unemployment all over the continent and serious food shortages in certain times of the year, there is a serious need for innovative and sustainable means of financing the sector.

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