Paper

A Roadmap for Growth: Positioning Local Banks for Success in Smallholder Finance

Designing a roadmap for improving accessibility of financial institutions to smallholders
Download 8 pages

This paper outlines what is required for a healthy, competitive smallholder banking sector and identifies investment opportunities for public and commercial funders seeking to support smallholders. The analysis includes an overview of the characteristics and capabilities of banks that are well positioned to serve smallholder farmers. The paper concludes that the smallholder banking market presents interesting opportunities for investors to help grow the market. Specifically:

  • Niche poverty lenders, particularly those that have or can obtain agriculture sector expertise, present the most attractive investment opportunity among the defined archetypes;
  • Investors might find case-by-case opportunities to support public policy lenders that are transitioning to a more commercial approach;
  • Regardless of the bank archetype, investors directing capital towards smallholder finance should couple that

 

About this Publication

By Zook, D., Deelder, W., Denny-Brown, C.
Published