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April 9th, 2015

Improving agricultural microfinance through risk mitigation

Published by NpM & Cordaid,

Agricultural lending is considered risky, though with proper risk management the agricultural sector is worth investing in as it shows considerable potential for growth. The risk management factsheet (PDF) elaborated by Cordaid presents four categories of risk mitigating measures that microfinance institutions (MFIs) can adopt to enhance safe opportunities for agricultural lending, in terms of: preparation, product risk alleviation, operations and collaborations. These measures have been identified in the ACP/EU Microfinance Program, by the MicroSave/Cordaid agricultural lending project which supported seven African MFIs in developing or refining appropriate agricultural lending products, including risk management and elements of agricultural value chain development.

Curated from cordaid.org