The Secret to Mobilizing Funds for Agri SMEs

Alliance for a Green Revolution in Africa – AGRA

Published on Mar 18, 2021

Agriculture in sub-Saharan Africa contributes to the economic development, employment, and food security of the continent. Agricultural small and medium enterprises (agri-SMEs) are key actors in agricultural value chains, which also channel finance and technology to farmers. While agri-SMEs face many challenges and barriers, access to finance is frequently identified as a critical barrier to their growth and resilience. Improving the information flow between lenders and agriSMEs can help address this finance gap. Currently, lenders do not have clear and standard lending requirements and, in turn, agri-SMEs are not always clear on what factors can make them creditworthy. In recognition of the need to narrow this finance gap, the Center for Financial Inclusion (CFI) and SCOPEinsight, in partnership with the Alliance for a Green Revolution in Africa (AGRA), worked to create a standardized set of bankability metrics that can serve as a common language between lenders and agri-SMEs.

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