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PARTNERING WITH FARMERS
THROUGH MICRO FINANCING
AGRICULTURE
ESTHER MUIRURI - EQUITY BANK
FARA CONFERENCE
ACCRA - GHANA
1
2
EQUITY BANK
Our purpose
 We exist to transform the lives and livelihoods of our people socially and
economically by ava...
EQUITY BANK’s CASE FOR AGRICULTURE
 Equity Bank strives to support agriculture through inclusive financial
intermediation...
Why partnership with farmers ?
 Constitutes a Large “underserved” market –the Base Of
the Pyramid (BOP)
 To promote econ...
Benefits of partnerships
 Allow partners to specialize in their areas of
strength
 Reduce the operational costs of small...
Challenges and mitigation
Largely dependant
on rainfall
6
Challenges and mitigation
Lack of collateral
to access credit:
7
Challenges and mitigation cont…..
Smallholder farmers are
spread over large
geographical areas
Develop cost effective
mech...
9
Our experience in partnering
with smallholder
Have established many strategic partnerships to support
farmers through fi...
10
EXAMPLE –KILIMO BIASHARA
PARTNERSHIP
 Is product developed through Partnership between
Equity Bank, AGRA and IFAD thro...
Kilimo biashara partnerships
Seed Companies
Agro
traders,millers,WF
P EAML
Using grain
handlers to promote
warehouse recei...
Harvesting fresh produce for export
12
Supportive infrastructure
 0ver 150 licensed country-wide branch
network supported by over 550 Visa
branded ATM’s, 4500 P...
Capacity building on farmers
 Financial Literacy is a service offered by
Equity Group Foundation to support
farmers to de...
Our products
 Farmer friendly remittance account that
encourage farmers to save with no ledger
fees –accessible through E...
16
Support required
 Awareness creation of existing opportunities
 Entrepreneurial Capacity building through
collaborati...
17
(insert the SMS
banking poster)
THANK YOU
Email: info@equitybank.co.ke
Web site: www.equitybank.co.ke
18
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Partnering with farmers for food and nutrition security through micro-financing for agriculture

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presentation by Dr Esther Muiruri (Agribusiness General)

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Transcript of "Partnering with farmers for food and nutrition security through micro-financing for agriculture"

  1. 1. 1 PARTNERING WITH FARMERS THROUGH MICRO FINANCING AGRICULTURE ESTHER MUIRURI - EQUITY BANK FARA CONFERENCE ACCRA - GHANA 1
  2. 2. 2 EQUITY BANK Our purpose  We exist to transform the lives and livelihoods of our people socially and economically by availing to them modern, inclusive financial services . Our Vision To be the champion of the social-economic prosperity of the people of Africa Our mission We offer inclusive,customer focused financial services that socially and economically empower our clients and other stakeholders
  3. 3. EQUITY BANK’s CASE FOR AGRICULTURE  Equity Bank strives to support agriculture through inclusive financial intermediation to transform agriculture from subsistence to commercially sustainable enterprises that have capacity to create employment, wealth, foreign exchange and enhance food security.  The Bank approached agriculture through partnerships with like minded players within the agricultural value chains  With special focus to the smallholder farmers the bank seeks to understand the needs of the farmers and develop products and services that meet those needs.  The Bank further develops policies and processes that can address the specific requirements for the smallholder farmers  Over the years Equity Bank has gained substantial experience largely from learning from the dynamics of dealing with smallholder farmers 3
  4. 4. Why partnership with farmers ?  Constitutes a Large “underserved” market –the Base Of the Pyramid (BOP)  To promote economic empowerment by redistribution of wealth through access to financial resources  Enabling micro enterprises (farmers, processors, transporters etc) to contribute to the economy and be part of the financial system  A Social responsibility to avail financial services to the lower segment majority of our rural community 4
  5. 5. Benefits of partnerships  Allow partners to specialize in their areas of strength  Reduce the operational costs of smallholder producers  Spread risks among partners  Achieve economies of scale  Allow growth and expansion  Ensure cash flow for the producers and processors/buyers  Generate opportunities for other BDS players 5
  6. 6. Challenges and mitigation Largely dependant on rainfall 6
  7. 7. Challenges and mitigation Lack of collateral to access credit: 7
  8. 8. Challenges and mitigation cont….. Smallholder farmers are spread over large geographical areas Develop cost effective mechanism through technology to reach out to the farmers such as mobile banking , agency banking 8
  9. 9. 9 Our experience in partnering with smallholder Have established many strategic partnerships to support farmers through financial intermediation such as :-  Tea Farmers through KTDA  Dairy sector with procesors like NKCC and Brookside Dairies  Livestock through KMC and NGOs  Partnerships with horticultural exporting companies  Partnerships with Seed, Agrochemical and fertilizer companies  Partnerships with many local Parastatals and other Development Agencies like WFP, FAO, WB, GIZ, IFAD, AGRA 9
  10. 10. 10 EXAMPLE –KILIMO BIASHARA PARTNERSHIP  Is product developed through Partnership between Equity Bank, AGRA and IFAD through Ministry of Agriculture . Also supported by World Bank through GOK funding from EU Under risk sharing facility. Objective:  To increase food security and household income for farmers  To support commercialization of agricultural activities among Kenyan farmers  Has reached over 60,000 farmers and agro dealers with over ksh3.5 Billion (appx. over $41m) in loans. 10
  11. 11. Kilimo biashara partnerships Seed Companies Agro traders,millers,WF P EAML Using grain handlers to promote warehouse receipt Farmers financed to produce Stockist/ Dealers outlets Equity bank,MOA and other Developme nt Partners. 11
  12. 12. Harvesting fresh produce for export 12
  13. 13. Supportive infrastructure  0ver 150 licensed country-wide branch network supported by over 550 Visa branded ATM’s, 4500 Points of Sale (POS), and over 5,000 agents network  EAZZY 24/7 service – allows customers to access banking services on their mobile phone. 13
  14. 14. Capacity building on farmers  Financial Literacy is a service offered by Equity Group Foundation to support farmers to develop better financial management skills  Relationships managed by qualified extension staff in Equity Bank branches across the country 14
  15. 15. Our products  Farmer friendly remittance account that encourage farmers to save with no ledger fees –accessible through EAZZY 24/7 and Agency network  Loans at affordable interest rate administered using group and individual lending methodologies 15
  16. 16. 16 Support required  Awareness creation of existing opportunities  Entrepreneurial Capacity building through collaboration with partners  Access to credit to farmers and value chain players  Access to markets and competitive prices- to support sustainable commercialization  Use of technology to drive the business 16
  17. 17. 17 (insert the SMS banking poster)
  18. 18. THANK YOU Email: info@equitybank.co.ke Web site: www.equitybank.co.ke 18
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