AD - Organizational Strengthening AgriFinance
In the intervention region of this program - central and northern parts of Benin - agriculture is the main source of income for the 300,000 people living in this area. Besides subsistence farming there are very few commercial activities in the area. Cotton is one of the main cash crops but the farmers decided to diversify into other crops and livestock to avoid dependence on one sector. They face many difficulties, however, as these value chains are not well developed yet. One of the problems encountered is the lack of access to finance for productive agricultural activities. Most MFIs operate the urban areas and are not able or willing to provide small credits for agricultural production.
Amount: 55,858 euros (grant)
Impact: Improved efficiency of credit operations that will allow the
effective provision of credit to over 3,000 clients.
Goal and objectives | AgriFinance, in close collaboration with the AgriBusiness team of DEDRAS, is able to effectively intervene in the rural areas with high repayment rates. However AgriFinance needs to change its manual (Excel) administration into an integrated IT system so that it can administer the microfinance activities properly and meet the regulatory requirements of the central bank of Benin. AgriFinance lacks the capital needed to make the investments in the IT system. Incluvest would like to strengthen the operations of AgriFinance by co-financing the IT system. Incluvest is also considering the provision of a loan to expand the microcredit portfolio.