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RURAL FINANCE INTERMEDIATION FOR GROWTH & WEALTH CREATION IN AFRICA. SETTING THE STAGE. Overall conditions in West Africa -rural economic activities, mainly agriculture and SMEs -poverty -lack of assets especially credit and other financial services.
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RURAL FINANCE INTERMEDIATION FOR GROWTH & WEALTH CREATION IN AFRICA SETTING THE STAGE
Overall conditions in West Africa • -rural economic activities, mainly agriculture and SMEs • -poverty • -lack of assets especially credit and other financial services
Many households that experience improvements remain highly vulnerable to poverty • Economic potential does not automatically translate into improved well-being outcomes for all households
Investments must focus on the complementary assets that the poor lack to allow them to take advantage of existing economic opportunities
Targeting areas with high poverty rates will not necessarily reach areas with high numbers of poor as pertains with many government credit programs
To generate substantial gains in poverty reduction and broad-based growth, complementarities between productive, social, and location-specific assets must be addressed
The financial system in West Africa • Evolution • Role • Performance
Has adequacy of financial resources for agriculture & SMEs been an issue?
Do banks have instruments & products that address demands of the majority of farmers &SMEs?
What aspects of the agricultural value chain are financed by banks? • Production • Transportation • Storage • Processing • Marketing
Is agricultural risk an excuse for banks to deny agriculture financial resources? • What about Weather Insurance for farmers?
THANK YOU Daniel Asare-Mintah