Innovations in rural finance
Twelve cases showcasing innovations and best practice rural and agricultural finance are featured have been highlighted in a new OPM study produced for the FinMark Trust, in conjunction with Kadale Consultants (Malawi).
OPM and Kadale reviewed various country reports to identify the main constraints to increasing access to rural and agricultural finance and to better understand the context in which innovations could be introduced. Twelve ‘best practice’ examples were identified including:
- Clustering farming as a comprehensive approach to agricultural finance (Peru);
- Facilitating access to capital for productive investments through micro-leasing (Bolivia and Pakistan);
- Facilitating MSME investment through risk-sharing and partnerships (Tanzania);
- Providing production-risk insurance (Kenya);
- Enabling market system change, also known as ‘Making Markets Work for the Poor’ (Tanzania);
- Adopting an integrated approach to value-chain finance (Central America and India)
- Applying strategies to lower the cost of supplying rural financial services (Philippines and Mongolia);
- Reforming development banks;
- Introducing mobile money (Kenya and South Africa);
- Finding alternative collateral (China);
- Rolling out informal savings-led models (South Africa); and
- Facilitating regional cooperation to improve access to and uptake of agricultural and rural finance.