·2nd African Continental Briefing – Finance 4 Farmers

Promoting inclusive finance models for farmers in Africa

13-14 July 2014,  Nairobi, Kenya

Organized by The Panafrican Farmer’s Organisations (PAFO), the ACP-EU Technical Center for Agricultural and Rural Cooperation (CTA) and the African Union Commission (AUC)

This Briefing is linked to the Brussels Briefings organized by the CTA, EC/DGDEVCO, ACP Group and Concord every two months on key issues related to agriculture in ACP countries.

Logos for the 2nd Continental Briefing Inclusive Finance for Farmers in Africa

Sunday 13 July 2014
New impetus for value chain finance and Successes in Farmer Business Models

Welcome and introductory remarks

  • Prof. Kinandu Muragu, Executive Director, Kenya School of Monetary Studies
  • Theo de Jager, Vice-President PAFO,
  • Janet Edeme, AUC
  • Michael Hailu, Director, CTA

Objectives and Programme Isolina Boto, Manager, CTA Brussels Office

Session 1: Setting the scene: New environment for VC finance

Panel 1: Finance: a key driver for value chain development
This panel discussed the concept of agricultural value chain finance in Africa, new developments and new opportunities for farmers.

Chair: PAFO
Panel:

  • New opportunities in agricultural value chain finance
    Lamon Rutten, Programme Manager, Policies, Markets & ICTs, CTA
  • Agricultural finance and trade
    Abraham Sarfo, ATVET Advisor at NEPAD Planning and Coordinating Agency, CAADP
    [Presentation]
  • Agribusiness advisory services: new context in Africa
    Saleh Usman Gashua, Secretary General, Afraca
  • Financial inclusiveness from a farmer’s perspective: challenges and opportunities
    Ousseini Ouédraogo, Programme manager, ROPPA
    [Presentation]

Session 2: Successes from farmer’s organisations

This session presented how farmers in a specific value chain can take full ownership of their agricultural value chain. It also highlighted the different roles the government and the donor community can play in creating rural businesses for greater rural development and sustainability. The transition that this business model has gone through was used to highlight the importance of approaching farmer business structures with an open mind as to how the business will adapt to the local business environment and social dynamics.

Chair: Kolyang Palebele, 1st Vice President of PROPAC

Case 1:
Contractual marketing experience: example of the tomato sector in Senegal
Ablaye Dieng, ROPPA
[Presentation]

Case 2 : 
Experience of the joint marketing of potatoes within the Federation of Farmers of the Fouta Djallon region, Guinea
Ibrahima Bah, Federation of Farmers of the Fouta Djallon region, Guinea
[Presentation]

Case 3: Cereal Value Chain production, ROPPA
Bassiaka Dao, President of Confederation Paysanne du Faso (member of ROPPA)

Case 4: 
Tea Farmers creating a multi business operation: The Igara Tea Growers Factory Limited business model and the Uganda Tea Development Agency Limited as a service provider to a farmer business
Muguzi Arthur, Chairman Board of Director, Igara Tea Factory Company Lt
[Presentation|Executive summary]

Case 5:
Farmer business model designed to assist farmers adopt a business approach to farming and address the various needs in the value chain: The National Union for Coffee Agribusinesses and Farm Enterprises (NUCAFE)
David Muwonge, Deputy Executive Director, NUCAFE
[Presentation|Executive Summary]

Building Small Farmer Organizations, 
Fadel Ndiame, Lead, Farmer Organization Support Centre (FOSCA)

Panel:

  • Muguzi Arthur, Chairman Board of Director, Igara Tea Factory Company Ltd
  • Dr Theo de Jager, President SACAU
  • Fadel Ndiame, Lead, Farmer Organization Support Centre (FOSCA), FOSCA – AGRA
  • David Ruchiu, Africa Director, Farm Concern International
  • David Muwonge, Deputy Executive Director, National Union for Coffee Agribusinesses and Farm Enterprises (NUCAFE)

Monday 14 July:
Building agricultural finance from the farmers needs and role of Farmer Organisations

Session 3: Finance at the bottom of the pyramid

This session started with presentations on what women self-help groups are doing to increase their access to financial services, and Banks presented and discussed what they look for in a client. This was followed by a panel discussion on what Farmer Organisations can do to increase their access to finance with the resources currently at their disposal before planning to expand.

Chair: Theo de Jager, President of SACAU

Panel:

  • Increasing access to finance and strengthening financial services
    Wiligis Mbogoro, Executive Director of Tanzania Federation of Co-operatives (TFC)
    [Presentation|Executive Summary]
  • Banking agriculture in the Eastern African region
    Esther Muiruri, General Manager, Marketing and Communications, Equity Bank
  • The banking service to its 190 member cooperatives.
    Dessalegn Jena, Deputy Manager Accounts & Finance, Oromia Coffee Farmers’ Co-operative Union (OCFCU) and EAFF 2nd Vice President
    [Presentation]

Questions and Discussion

Session 4: Building Data Collection as a Farmer Organisation Service

This session discussed the ways in which the FOs can improve and/or strengthen their capacities and involvement in data collection and management. This is to support the financial institutions, FOs and government policy processes. Relevant banks, traders, insurance presented their perspectives.

Chair: Philip Kiriro, President of EAFF

Panel:

  • Experience of ROPPA in data collection: the case of the regional observatory of family farms in West Africa
    Mahamadou Ouedraogo, Coordinator, Regional Observatory of Family Farms, ROPPA
    [Presentation]
  • Importance of local information to international business decisions/trade
    Enock Chikava, Bunge Senwes International (BSI)
    [Presentation]
  • One Step Program for Smallholder Farmers
    William K. Ngeno, Industrial Partnerships Manager. Yara Tanzania Limited
    [Presentation]
  • Relevancy in expanding access to insurance and reducing cost
    Agrotosh Mookerjee Principal Actuary, MicroEnsure
    [Presentation]

Questions and Discussion

Session 5: Doing Business with Farmers and FOs

This session focused on the FOs drawing up a common action plan with regard to starting some business initiatives, leading local finance initiatives, with a plan to present these to local large businesses and Banks as business opportunities. This session also contributed to the declaration and policy recommendations.

However, it began with 2 presentations on how financial institutions and agribusinesses are working with farmers and FOs to increase access to finance.

  • Sharing a Value Chain Finance Experience in Ghana
    Stephen Mwinkaara, Agricultural Lead Guinness Ghana Breweries Ltd (Diageo)
    [Presentation|Executive Summary]
  • Commodity exchange development
    Adam Gross, Investments and Capital Markets Advisor, Nepad Business Foundation
    [Presentation]

Session 6: Action Plan for increased access to finance

Drawing up Action Plan for increased access to finance
[Action Plan]

Conclusions and Closure

 

2 thoughts on “·2nd African Continental Briefing – Finance 4 Farmers

  1. as an up coming young farmer ‘am looking into access to the help I can get to put up a proper researched farming strategy to keep my farm running. Especially financially and all the updates I can get.

    • Dear MUsabayana,

      Thank you for your comment. If you want more information on farming strategy, you should visit the CTA Publications website There you will find books and other resources that you can download for free.

      Good Luck and stay in touch!

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