Pathways to Prosperity: 2019 Rural & Agricultural Finance State of the Sector report

Published 08 May 2020

Aceli Africa collaborated with ISF Advisors to build on previous analysis of the natural stages of agricultural finance and interrogate more deeply the transition that countries make from government-led to more bank-led agricultural finance.

This new briefing note adds the historical experiences of Mexico, Turkey, and Uganda (as well as other specific initiatives in other countries around the world) to past research by ISF Advisors into the United States, Germany, and South Korea, to gain a greater understanding into the unique approaches that different countries have taken to make this transition.

While these approaches are heavily influenced by each country’s macro-level approach to managing the economy, analysis shows the importance of meso-level enablers and more direct micro-level interventions. As we unpack government actions into these different levels and acknowledge the dynamic interplay between the agricultural and finance sides of the market we create a more systemic view of these historical experiences.

Read the Role of Government in Rural and Agri-Finance briefing note and case study compendium.

In this COVID-19 Emergency Briefing Series, ISF Advisors and the Mastercard Foundation Rural & Agricultural Finance Learning Lab looks at how the COVID-19 crisis is likely to affect different types of rural households in emerging markets and what the cascading effects may be on markets, food security, and national security.

The series builds on the 2019 Pathways to Prosperity report and provides tangible recommendations to critical decision makers on how rural agricultural livelihoods can be supported. This brief looks at how the COVID-19 crisis will impact small and medium agricultural enterprises (agri-SMEs) in emerging markets that, in many value chains, are squeezed between a drastic decline in consumer demand and difficult operating conditions along the supply chain.

Read the full COVID-19 brief.

The last three years have seen a rapid acceleration in technology-driven innovation, which has powered changes in existing rural finance models, enabled providers to develop new service delivery models, and facilitated the bundling of services in new ways. We have also seen a more diverse influx of service and capital providers, which has reshaped the market.

But despite this progress, there remains a large, persistent gap in smallholder and agricultural SME finance. 

The Pathways to Prosperity report from ISF Advisors and the Mastercard Foundation Rural & Agricultural Finance Learning Lab presents new, dynamic frameworks for accelerating progress towards closing the $170 billion smallholder financing gap and achieving inclusive rural transformation.

Explore the research and download the report here.