Why is does AGRA consider agricultural sector financing such an important issue?
Lack of access to credit for Africa’s smallholder farmers, input suppliers, farmer cooperatives, or agro-processors is a major impediment to increasing productivity in sub-Saharan Africa. AGRA is working with financial institutions to make low-interest loans available to key agro-dealers, fertilizer wholesalers, and seed companies—and to make financing available for warehouse receipt systems, farmer groups, and agro-processing facilities. To address this lack of access to credit, AGRA, in partnership with Equity Bank, IFAD and the Kenyan Ministry of Agriculture, created a loan facility of US $50 million that was backed with a US $5 million cash guarantee fund. As a result, affordable credit was made available to 2.5 million farmers and 15,000 agricultural value chain operators such as rural input shops, fertilizer and seed wholesalers and importers, grain traders and food processors. A similar loan facility was established with the National Microfinance Bank in Tanzania. AGRA is workin
