Training Objectives:

It is estimated that 122 million new jobs will be needed in Africa by 2020 to absorb a growing workforce and address unemployment. Despite having 27% of the world’s arable land, many African countries import food and agricultural products from outside the continent whilst, the continent accounts for just 1% of global manufacturing. Most jobs are expected to come from SMEs that form over 95% of businesses in Africa (most of which are agro-based). The agricultural sector has suffered from lack of investment in part, due to a perceived combination of high risk and lack of modest returns. Failure to tackle these constraints and their associated effect on agricultural financing will stifle growth and retrogress progress made towards poverty reduction as well as food/income security.

This training draws lessons from the activities of some traditional Financial Institutions (FI’s) and Private Equity Firms (PEF’s) to enhance the capacities of FI’s and Business Development Service Providers (BDS) supporting farmers and SME’s in the agribusiness space.

The training content covers the following areas:

  • Understanding agro-commodity chains in Africa.
  • Review of challenges to agricultural financing in Africa
  • Review of business models for agricultural financing in Africa.
  • Review of best practices and key principles associated with successful agricultural financing models in Africa.
  • Agri-loan evaluation, administration and management guidelines.
  • Credit risk management models for agri-loans.

Who can participate in this training?

  • Private Businesses (Aggregators, Commodity Traders, Processors, Industry Associations, Accountants, Financial Managers etc.).
  • Government Institutions (Policy Makers & Planners)
  • Staff of Developmental Organisations and NGO’s.
  • Financial Institutions: microfinance institutions, banks, insurance companies and other financial institutions.

Training methods:

Competency Based Training (CBT) Model:

  • Presentations, discussions/case reviews and group work and individual assessment.
  • Experience sharing: Beneficiary of Private Equity Firm.

Potential Collaborating Institutions