ISF Advisors and CASA Programme published a new State of the Sector report that sizes the demand for agri-SME financing in sub-Saharan Africa and Southeast Asia at USD 160 billion. They estimate that only USD 54 billion (~34%) is currently being met through formal finance channels—leaving an annual financing gap of USD 106 billion.
Going beyond these headline numbers, the report introduces a more specific view of where the market for agri-SME finance is and isn’t functioning. The research breaks down the market in a more comprehensive and holistic way to show where finance is specifically flowing, via specific types of products from specific types of funders to specific types of agri-SMEs. The report also presents four long-term change priorities to help systematically close the USD 106 billion agri-SME financing gap.