We believe that agricultural finance programs must be defined on the basis of a good understanding of the constraints encountered by the players operating in agricultural value chains, on the one hand, and by the different types of financial intermediaries that could supply them with funding, on the other. The context must also be taken into account, notably the institutional environment, market players, the regulatory backdrop, and the impact of the social-cultural context on the demand structure.
Designing such a program primarily involves identifying innovative schemes to eliminate the constraints identified
Such schemes may for example include:
Implementing guarantee mechanisms (contract farming, insurance, guarantee funds, etc.)
Strengthening the financial Institutionsí capacities and resources (development of specific products, methodologies, training, refinancing, etc.)
Providing support and coaching to all the players in the value chains
HORUS has 20 years experience in designing, assessing and implementing rural finance programs in different geographical areas (sub-Saharan Africa and North Africa, Asia, and Eastern Europe). HORUS may be involved in all or part of the program design process, for programs aimed at the entire agricultural sector or at specific subsectors or types of players.
Program design assignments are part of the project preparation process, prior to its assessment by the donor. These assignments are designed to help donors analyze the projectís context, decide on the intervention scope, describe the project components and analyze its integration in the institutional framework... HORUSís approach is rolled out in three phases: (i) analyze the market to identify unmet needs, (ii) evaluate the context and (iii) define the program. The market analysis is aimed at gauging the financing gap between solvent demand for credit and financial services offered by financial institutions or other players. On the demand side, we analyse the needs of the various links in agricultural value chains, in terms of volumes, maturity, seasonality and guarantee possibilities. Our supply-side analysis looks at both available supply and the financial institutions likely to be able to meet the identified needs.
Agricultural finance program design process
Pre-feasibility study for a project to support access to financial services for small-scale farmers and rural and agro-enterprises in Zambia (AFD, ZNFU, 2015).
Pre-feasibility and feasibility studies for a warehouse receipt finance program in Burkina Faso (KfW, 2015).
Pre-feasibility study for an agricultural and rural finance program and proposals for new approaches to rural finance for the German Cooperation in Benin (KfW, 2015).
Development of an innovative credit mechanism dedicated to the financing of farmers organizationsí commercial activities in Cambodia (SNEC, AFD, 2014-2016, WIP).
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