New trends in financing agricultural value chains – promising practices and emerging recommendations for policy development
This publication (PDF) by Dr. Rauno Zander from the GPFI SME Finance SubGroup aims to provide development policymakers with some practical recent insights on new trends in agricultural value chain financing. It highlights good practices, success factors and lessons to be learnt from recent experiences, covering the past five years. The paper looks at innovation challenges in agricultural value chain financing and details three possible types of innovation, namely for products, processes and systems. Several cases are highlighted, such as the case of ICT solutions to facilitate logistics and financing for coffee in Uganda. The final chapter outlines some areas for increased engagement of donors and other private and public sector programme partners. The chapter tries to capture the way forward for the most important development partners, based on the emerging experience of the German Development Cooperation, i.e. central banks and regulatory authorities, agribusiness stakeholders and other agricultural sectors, financial institutions and other financial sector players, investors and funders, and, also important, the primary producers and their associations.