1 / 3

The Banking-Finance Sector In Agriculture (1)

Agriculture provides several people with livelihood in evolving and emerging economies u2014 especially those living in rural areas. Yet access to agricultural finance is often a hurdle. A deficiency of access to finance stops numerous farmers from embracing new technology and improving their efficiency.<br><br>With the need for food expected to grow by 60% by 2050 and the agricultural system under pressure to fulfill the present market, funding in sustainable technologies and climate-smart agriculture is the sole way to boost the food business.<br>These investments would allow farmers to produce more foo

henrey
Download Presentation

The Banking-Finance Sector In Agriculture (1)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Banking-Finance Sector In Agriculture Our important agricultural finance programs include the Global Trade Liquidity Program (GTLP), the Essential Commodities Finance Program, the Food and Agri and Global Warehouse Finance Program (GWFP), and the Food System Evolution Program. Check This Out :: Manage CFO Magazine Agriculture provides several people with livelihood in evolving and emerging economies — especially those living in rural areas. Yet access to agricultural finance is often a hurdle. A deficiency of access to finance stops numerous farmers from embracing new technology and improving their efficiency. With the need for food expected to grow by 60% by 2050 and the agricultural system under pressure to fulfill the present market, funding in sustainable technologies and climate-smart agriculture is the sole way to boost the food business. These investments would allow farmers to produce more food with less environmental influence. Wise investments could also reduce food prices and promote economic health in rural areas.

  2. Financing the agricultural area presents numerous challenges for financial institutions: Acquiring remote rural areas can be expensive; Weather risks, crop concentration, and price volatility expand the credit risk for lenders, lowering their appetite to finance the sector; Risk-assessment technologies generally have a dearth of precision for assessing investment prospects in rural areas. The agricultural sector needs integral risk-management techniques and close cooperation with tech providers and agribusinesses. What we do By associating with financial institutions, IFC enables customized short- and medium-term working capital and long-term agricultural financing. Our investments incorporate credit lines and risk engagement. Moreover, we generally complement these investments with advisory services. IFC’s Global Agri-Finance Advisory Program plans to help expand the accessibility of agricultural finance in appearing and growing markets by enabling proper risk-reduction products and skills growth in financial institutions. Our program backs different types of institutions — banks, microfinance institutions, and fintech — as follows: • We function with banks to support agricultural supply chain finance, climate finance for agribusinesses, risk-assessment standards, and digital scoring for agriculture. • We support microfinance institutions in designing digital scoring models, E-wallets, and mobile payments, build credit agents’ skills in rural areas and construct strategic alliances with agribusinesses. • We help fintech create digital scoring models, execute risk-management frameworks, improve portfolio management in rural areas, and form strategic alliances in agricultural supply chains.

  3. • Our important agricultural finance programs include the Global Trade Liquidity Program (GTLP), the Critical Commodities Finance Program, the Food and Agri and Global Warehouse Finance Program (GWFP), and the Food System Development Program. Food System Development Program IFC’s Food Systems Development Program is a consultative initiative with the German Federal Ministry for Economic Development and Cooperation, BMZ, to promote sustainable rural transformation in Africa. Employing an integrated, private investment-led, and market-oriented method, the program enables access to agricultural finance and value chain evolution to benefit smallholder farmers, farmer organizations, and micro, small & medium enterprises in the farming sector. The program aids financial institutions and agricultural value chain players in Africa in developing inventive financing solutions to handle historical disputes in the provision of agricultural finance. It focuses on building financial services partnerships along the value chains and leveraging digital technology to design and test new tools, processes, and financial products to satisfy the requirements of all actors along the value chain. The program also tracks an extensive research and learning plan, exploiting and sharing understandings gained in program projects for the industry & the public good.

More Related