Smallholder agriculture – impressive impact by CSAF members!

The Council of Smallholder Agricultural Finance (CSAF) State of the Sector 2018 publication showcases the success of this alliance of 12 social lending institutions targeting agricultural businesses  in low- and middle-income countries. Very concretely, the members have had the following impact since the foundation of the CSAF in 2013:

Lending has increased to an annual USD 716m. Growth rates have plateaued at 2% in 2017, after an average growth rate of 12% in previous years.

Funding of African agricultural SMEs have increased by 24%, and in South & East Asia by 18%. South America has been declining for the last 2 years.

CSAF members support 794 businesses showing strongest  growth in Kenya, Indonesia and Rwanda.

CSAF borrowers provide market access to 2.2m smallholder farmers, 35% of which are women (up from 29% in 2016), and employ 82,000.

Coffee is the mainly financed value chain and increased to 44% of CSAF members` lending (up from 39%).

Portfolio at Risk (30 days) increased in 2017 to 8.5% (8.1% in 2016).

The client retention rate of CSAF members reached 85%.

Overall loan sizes increased by 3% but loan sizes for new borrowers declined by 30%.

Please have a look at the full report (Council of Smallholder Agricultural Finance (CSAF) State of the Sector 2018) to see the interesting analysis that Dalberg Advisors worked out. A few good messages, but also a few we might have to chew on when thinking about our continued support to agricultural lending.

 

 

 

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