Overview
Even though traditional microfinance has successfully paved the way for offering financial services to low-income populations without traditional collateral, many microfinance institutions (MFIs) are still reluctant to move into rural areas and agricultural finance, due to the perceived high risks and costs. Daniela Röttger's research demonstrates how MFIs can mitigate risks and costs of lending to smallholder farmers by using a combination of proven traditional microfinance mechanisms while adapting specific loan features and lending mechanisms to the particularities of smallholder agriculture. She systematically compares traditional microfinance risk management mechanisms with agricultural microfinance approaches and identifies successful strategies. Eight MFIs providing agricultural finance to smallholder farmers in four countries in East and West Africa (Uganda, Kenya, Benin, Cameroon) were interviewed and their loan features and agricultural lending mechanism were analyzed. The study shows that MFIs can successfully serve smallholder farmers in rural areas. A strong commitment combined with sound in-house knowledge of agricultural value chains and the flexibility to adapt loan terms and lending procedures to the particularities of agriculture are needed to successfully develop and sustain agricultural microfinance.
Full Product Details
Author: Daniela Rottger ,
Philippe Guichandut
Publisher: ibidem-Verlag, Jessica Haunschild u Christian Schon
Imprint: ibidem-Verlag, Jessica Haunschild u Christian Schon
Volume: 11
Dimensions:
Width: 14.80cm
, Height: 1.50cm
, Length: 21.00cm
Weight: 0.437kg
ISBN: 9783838207858
ISBN 10: 3838207858
Pages: 152
Publication Date: 07 December 2021
Audience:
Professional and scholarly
,
Professional & Vocational
Format: Paperback
Publisher's Status: Active
Availability: In Print
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Language: English
Reviews
This book is a concrete example of how very good practical, field-based research can help practitioners and the sector in general to better understand some of their key challenges and to open new opportunities for development and innovation. -- Philippe Guichandut, Head of Development and Technical Assistance at the Grameen Credit Agricole Microfinance Foundation
This book is a concrete example of how very good practical, field based re-search can help practitioners and the sector in general to better understand some of their key challenges and to open new opportunities for development and innovation. ?Philippe Guichandut, Head of Development and Technical Assistance at the Grameen Cr dit Agricole Microfinance Foundation
Author Information
Daniela Rottger won the 2013 University Meets Microfinance award. She works as an independent consultant for microfinance and monitoring & evaluation, including the Competitive African Cotton Initiative.
