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Horticultural Value Chain Development & Financing Strategies for Zimbabwe's Smallholder Irrigation Farmers

This is a presentation made by Reneth Mano at the Annual National Economic Consultative Forum held at Rainbow Towers in Harare, Zimbabwe (Date - 14/09/2014)

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Horticultural Value Chain Development Financing
Strategies for Smallholder Irrigation Communities
Lessons from ZimAIED AgriTrade Revolving Credit Facility
in Zimbabwe
RENETH MANO
rtmano@gmail.com; rmano@irdglobal.org
Cell:0773056440
2
OUTLINE
1. Background and financial needs of Smallholder Sector
2. IRD Financial Project Experiences and Partners
3. IRD Smallholder Agric Value Chain Development Concept
4. ZIMAIED AGRITRADE RCF MODEL: Results & Experience
5. Financial Inclusion
6. AGRITRADE Direct Lending to Horticultural Farmers –
Experiences & Challenges:
7. Conclusions and Policy Insights
3
Features of Smallholder Agriculture
• Size of the SHA market for credit by Numbers:
1,628500 families:
– Communal farmers: 1,400000
– Old resettlement farmers: 75000
– Small Scale commercial: 8000
– Newly Resettled A1 farmers: 145000
• Irrigated Agriculture
– Smallholder agriculture (COPA): 13,200ha
– Large scale commercial resettled farms 102,000ha
– State irrigated estates (ARDA): 8,000ha
4
Financial Inclusion of Smallholder
• Agricultural Input Financing Requirement for summer crops (MinAMID)
– Whole agric sector inputs : $2.624b
– FNS Crops/Livestock inputs: $1.445b
• Apparent Supply of Agricultural Input Finance from commercial banks
– Commercial Bank Supply of Credit to Agric (18%): $720million
– Tobacco (50%) $360million
– Maize (4%) $35million
• Estimated effective market demand smallholder dry land input finance
– Dry land maize input credit for top 25% (ie 350,000ha) : $105million
– Tobacco and cotton input credit :$290 million
• Estimated demand for input credit in smallholder irrigated horticulture
– 13,200 hectares of smallholder irrigation schemes 50% or 6100ha functional
– 10 % to 25% low hanging fruit for commercial credit: 600-1500 hectares
– Effective demand for input credit current crop mix: $300,000 -$750,000
– Shift to high value fruit horticulture eg banana @ $4000/ha plus $1200/ha/yr inputs
– CAPEX for transforming 500ha (1000 farmers) to high value horticulture: $2,000,000
5
IRD EXPERIENCES: PROJECT PARTNERS
• ZIMBABWE PROJECTS
REVALUE PROJECT
ZIMAIED AGRITRADE RCF
DAIRYFIN RCF
• REGIONAL PROJECTS
GHANA/MALI/SWAZILAND
• ZIMAIED AGRITRADE
FUNDING PARTNER
–USAID
• ZIMAIED AGRITRADE
Investment Partners
– 3 Commercial banks
– 1 state owned bank
– 5 MFI members of ZMWF
6
IRD Smallholder Agro Value Chain Development
Concept & Approach
• Start with comparative analysis of commercialization opportunities
• Choose strategic entry crops for commercialization transition:
o May not be the most lucrative, but offers the best income
gains for many farmers over a short period of time
• Demonstrate progress, earn credibility for VC upgrading to HV crops
Goal: Increasing Farmer’s Income
Agricultural Inputs Production Commercialization
Commercialization Opportunity
7
IRD Value Chain Development – Initial State
Agricultural Inputs Production Commercialization
Commercialization Opportunity
Missing Financial Market
Incomplete Agric Mkts
Missing financial & Credit markets =>Limited Q Market =>Low returns
Access to financial markets catalyzes rural food& agric. market system
Farmers Groups
Informal SAL Schemes
Barter trading
Rural Agrodealers Networks
Informal SAL Schemes
Barter trading
Missing Financial Market
Incomplete Agric Mkts
8
REVALUE LESSONS: $ grow from $
9
10
ZIMAIED AgriTrade Revolving Credit Facility
Experiences and Current Results
Credit for private agribusiness engagement
with
Smallholder farming communities
in
communal areas and irrigation schemes
11
AgriTrade Background: Year 2009-12
• Under-capitalized buyers of smallholder farmers’ produce
• De-capitalized financial institutions with limited access to deposits
• Food aid and free inputs programs driving farm decision
• No credit providers DIRECTLY LENDING to smallholder Limited
contract farming opportunities for SH irrigation farmers
• Smallholder horticultural farmers TRAPPED in low input-low value
partially market-driven farming system
12
AgriTrade Introduction
What is AgriTrade?
A commercial credit facility that provides liquidity for
agribusinesses working with smallholder farmers.
What is financed?
Agribusinesses working with smallholder farmers to:
- Buy produce
- Sell agricultural inputs
- Buy small processing equipment
- Establish contract farming
Who is leading? Partner Financial Institutions.
13
AgriTrade Methodology
Small
Holder
Farmers
Rural Agro-dealers,
Agro Merchant,
Contract Farming
Entity
Processor Retailer
Inputs Producer
/ Importer
Agro-dealer, Ag
Merchant, Contract
Farming Entity
AgriTrade
Credit
AgriTrade
Credit
AgriTrade
Credit
AgriTrade
DairyFin
Credit
14
AgriTrade Methodology: Design Principle
IRD
Banks
max $5 million Recoverable 4-Year
Loan: USAID ZIMAIED PROJECT
match 1:1 100% risk
$500 -
$200,000
loans
Technical Support
M&E
Technical Support
M&E
Agribusinesses & Producers
15
ZIMAIED AGRITRADE RESULTS
Increased MARKET COMPETITION for produce
Promotes CA$H–based marketing culture
Increases DISPOSAL INCOME of surplus-producers
Stimulates CONSUMPTION expenditure….
Stimulates SAVINGS propensity….….
Stimulates INVESTMENTS on family-farm…
16
AgriTrade Results: Portfolio
AgriTrade Portfolio for the week ending 20/08/2014
Number Value (US$)
Cumulative Loan Disbursements 1,723 $15,246,271
Cumulative Loan Repayments 1,398 $13,063,510
Active AgriTrade Loan Portfolio 259 $2,177,761
Smallholder business transactions funded from the Loans $29,298,825
USAID Investment and Return on Investment (ROI)
(a) Matching Funds from USAID utilized
(b) Leverage Ratio ( Loans disbursed per $ USAID)
(c) SHF Impact Ratio (Agritrade purchases per $ of USAID)
$3.5million
4.36
8.37
17
AgriTrade Results
Under $5k
$2,176.7
14%
$5k - $10k
$1,068.0
7%
$10k to $50k
$2,519.5
16%
$50k to $100k
$2,065.8
14%
Over $100k
$7,416.2
49%
Value of loans disbursed per size
of loan ( x $1,000)
Under $5k,
1328, 77%
$5k - $10k, 170,
10%
$10k to $50k,
149, 9%
$50k to $100k,
33, 2%
Over $100k, 43,
2%
Number of loans disbursed per size of
loan
18
AgriTrade Results: Distribution of Borrowers
0 -$1.9m
$1.9m-$3.8m
$3.8m-$5.7m
$5.7m-$7.6m
+ $7.6m
Harare $5,469,125 36%
Mashonaland $3,443,265 23%
Manicaland $1,826,499 12%
Masvingo $1,811,255 12%
Midlands $1,780,092 12%
Matabeleland $916,034 6%
Value of total disbursed AgriTrade
loans per location of borrower by
20 August 2014
19
AgriTrade Results – Provincial Distribution
0 -$3.7m
$3.7m-$7.3m
$7.3m-$11m
$11m-$14.6m
+ $14.6m
Mashonaland $17,294,333 59%
Manicaland $4,616,856 16%
Masvingo $3,081,614 11%
Midlands $2,407,378 8%
Matabeleland $1,898,643 6%
Value of actual purchases of
commodities from smallholder
farmers with AgriTrade loans
by 20 August 2014
20
AgriTrade Results:
Major Purchases from Smallholders
Cattle
60%
Inputs
13%
Maize
12%
Potatoes
3%
Commodities purchased with disbursed loans
Bananas
Cattle
Cow Peas / Other Legumes
OtherLivestock
Nuts
Inputs
Maize
Other Fruits
Other Commodities
Vegetables
Paprika / Other Chillies
Potatoes
Sorghum
21
AGRITRADE DIRECT LENDING TO
SMALLHOLDER HORTICULTURAL FARMERS
Scalable Experiences for horticulture from
- TWO programs – TWO approaches
A. DAIRYFIN FACILITY: MK/LOL/ZADF: USAID
B. ZIMAIED AGRITRADE Direct Lending Initiatives
22
DAIRYFIN – Revolving Credit Facility
1. Partners:Investors USAID & MK. NGO Partners:IRD/Land’O Lakes/ZADF
2. Initial Capitalization:36 incalf cross-breed dairy heifers
- 50% MK contribution + 50% USAID Contribution
3. MK DairyFinance Facility Terms:
- 25% deposit, 24 months loan tenor, 13% APR
4. Collateral Security Requirements:
+ Cessation on insured dairy heifers purchased with DairyFin loan,
+ Smallholder group solidarity loan guarantees
+ Stop-order loan repayment agreement with milk processor 5.
Performance:
+100% disbursed, 100% repayments,100% Loan Principal Recovery
+400% Return on Investment for USAID funds by end of Year1
23
CASE 2: AgriTrade Direct Lending to Farmers
• Target smallholder irrigation farmers under ZimAIED project
– 3 years technical support on production and marketing
– 35 irrigation schemes +selected dry land project areas
• Limited interest among Financial Institutions
• ZimAIED AgriTrade Strategy:
– Partner reputable FI willing to invest own funds in DLF
– Provide multi-disciplinary comprehensive technical &
frontline support to FI backed by ZimAIED’s multi-
disciplinary team
Lending terms of AgriTrade Financial Partners
Financial
Institution
Interest rate
& Est fees
Target Value Chains Loan
Repayment
Terms
Turn
around
time
Commercial
banking
partners
11%- 24% pa
2% - 3% flat
Banana,
potatoes, high
value mixed
vegetables,
export horticulture
Monthly
interest plus
bullet
principal
14 -45
days
MFI Partners 24% - 48%
5% flat
Irrigated mixed
vegetables,
paprika, bananas,
beans
Monthly
interest
Bullet
principal.
3 to 7
days
Direct Lending to Farmers
Small Holder Farmers
Groups
Viable Enterprises
High potential
Good track record
Low credit risk
Market Buyer
Rural Agro-dealer
Agro-merchant
Contract farming Ltd
Local Inputs Retailer
(AgriTrade client)
ROLES & RESPONSIBILITIES
Farmer Groups
Agric Extension
Development Partners
Research & Advisory
Policy Makers
ROLES OF MARKET BUYERS
Timely BUYING
Competitive market prices
Cash payment system:
Intelligence gathering
Timely delivery of input
packs to approved
borrowers
Actors
Inputs Microfinance
Input Credit Provider
(AgriTrade/ZMWF Client)
Commercial Bank
Credit Provider
(AgriTrade/CREATE Client)
contract
Timely approval of loans to
QUALIFIED farmers
Appropriate loan repayments
LIQUIDITY OF FINANCIAL INSTITUTIONS
Timely loan approval for
QUALIFIED buyers s
Marketable
Output
Risks
Supply
26
$199,648
$281,576
$395,050
$445,878
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
RESULTS : Cumulative Loan Portfolio Direct Lending to
Farmers in Smallholder Irrigation Scheme
+20 out of 35 target irrigation schemes linked to credit
+1447 out 7800 smallholder irrigation farmers accessing credit
+90% - 100% loan repayment rate in 5 irrigation communities
+ 50% to 75% loan repayments in 6 irrigation schemes
27
Key Results and Challenges
Key Results
• 22 of 35 Smallholder irrigation
schemes under ZimAIED
project now linked to credit
• 10% to 25% top performers
received input loans directly
from a private loan provider
• 85% to 100% loan repayment
rate attained in most schemes
• Capacity building of partner
MFI in SHA lending enhanced
Challenges
• Ltd number of well-functioning
irrigation schemes with secure
reliable water supply
• Historical debts to ZINWA/ZESA
render functional irrigation
schemes too risky for credit
• Limited irrigation management
capacity to ensure delivery of
quality produce to contractors
on TIME
• Ltd capacity of credit providers
28
Conclusion
• Making financial markets work for smallholder horticultural
farming communities is NO longer a formidable challenge
•Financing models that work for Zimbabwe are KNOWN.
• Lessons learnt from Min of Agric partner NGO projects (eg
ZimAIED Agritrade, DairyFin) are replicable and scalable
• Special RCF/CGF piloted are profitable forms of PPPs
capable of leveraging soft capital from donors to finance
commercially-driven smallholder horticultureVC development
• WANTED: Private agribusinesses with commercial appetite
and entrepreneurship drive to seize opportunities in domestic
smallholder horticultural value chains INVISIBLE to the rest!
• Challenge: Asymmetric information, High learning cost

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Horticultural Value Chain Development & Financing Strategies for Zimbabwe's Smallholder Irrigation Farmers

  • 1. Horticultural Value Chain Development Financing Strategies for Smallholder Irrigation Communities Lessons from ZimAIED AgriTrade Revolving Credit Facility in Zimbabwe RENETH MANO rtmano@gmail.com; rmano@irdglobal.org Cell:0773056440
  • 2. 2 OUTLINE 1. Background and financial needs of Smallholder Sector 2. IRD Financial Project Experiences and Partners 3. IRD Smallholder Agric Value Chain Development Concept 4. ZIMAIED AGRITRADE RCF MODEL: Results & Experience 5. Financial Inclusion 6. AGRITRADE Direct Lending to Horticultural Farmers – Experiences & Challenges: 7. Conclusions and Policy Insights
  • 3. 3 Features of Smallholder Agriculture • Size of the SHA market for credit by Numbers: 1,628500 families: – Communal farmers: 1,400000 – Old resettlement farmers: 75000 – Small Scale commercial: 8000 – Newly Resettled A1 farmers: 145000 • Irrigated Agriculture – Smallholder agriculture (COPA): 13,200ha – Large scale commercial resettled farms 102,000ha – State irrigated estates (ARDA): 8,000ha
  • 4. 4 Financial Inclusion of Smallholder • Agricultural Input Financing Requirement for summer crops (MinAMID) – Whole agric sector inputs : $2.624b – FNS Crops/Livestock inputs: $1.445b • Apparent Supply of Agricultural Input Finance from commercial banks – Commercial Bank Supply of Credit to Agric (18%): $720million – Tobacco (50%) $360million – Maize (4%) $35million • Estimated effective market demand smallholder dry land input finance – Dry land maize input credit for top 25% (ie 350,000ha) : $105million – Tobacco and cotton input credit :$290 million • Estimated demand for input credit in smallholder irrigated horticulture – 13,200 hectares of smallholder irrigation schemes 50% or 6100ha functional – 10 % to 25% low hanging fruit for commercial credit: 600-1500 hectares – Effective demand for input credit current crop mix: $300,000 -$750,000 – Shift to high value fruit horticulture eg banana @ $4000/ha plus $1200/ha/yr inputs – CAPEX for transforming 500ha (1000 farmers) to high value horticulture: $2,000,000
  • 5. 5 IRD EXPERIENCES: PROJECT PARTNERS • ZIMBABWE PROJECTS REVALUE PROJECT ZIMAIED AGRITRADE RCF DAIRYFIN RCF • REGIONAL PROJECTS GHANA/MALI/SWAZILAND • ZIMAIED AGRITRADE FUNDING PARTNER –USAID • ZIMAIED AGRITRADE Investment Partners – 3 Commercial banks – 1 state owned bank – 5 MFI members of ZMWF
  • 6. 6 IRD Smallholder Agro Value Chain Development Concept & Approach • Start with comparative analysis of commercialization opportunities • Choose strategic entry crops for commercialization transition: o May not be the most lucrative, but offers the best income gains for many farmers over a short period of time • Demonstrate progress, earn credibility for VC upgrading to HV crops Goal: Increasing Farmer’s Income Agricultural Inputs Production Commercialization Commercialization Opportunity
  • 7. 7 IRD Value Chain Development – Initial State Agricultural Inputs Production Commercialization Commercialization Opportunity Missing Financial Market Incomplete Agric Mkts Missing financial & Credit markets =>Limited Q Market =>Low returns Access to financial markets catalyzes rural food& agric. market system Farmers Groups Informal SAL Schemes Barter trading Rural Agrodealers Networks Informal SAL Schemes Barter trading Missing Financial Market Incomplete Agric Mkts
  • 8. 8 REVALUE LESSONS: $ grow from $
  • 9. 9
  • 10. 10 ZIMAIED AgriTrade Revolving Credit Facility Experiences and Current Results Credit for private agribusiness engagement with Smallholder farming communities in communal areas and irrigation schemes
  • 11. 11 AgriTrade Background: Year 2009-12 • Under-capitalized buyers of smallholder farmers’ produce • De-capitalized financial institutions with limited access to deposits • Food aid and free inputs programs driving farm decision • No credit providers DIRECTLY LENDING to smallholder Limited contract farming opportunities for SH irrigation farmers • Smallholder horticultural farmers TRAPPED in low input-low value partially market-driven farming system
  • 12. 12 AgriTrade Introduction What is AgriTrade? A commercial credit facility that provides liquidity for agribusinesses working with smallholder farmers. What is financed? Agribusinesses working with smallholder farmers to: - Buy produce - Sell agricultural inputs - Buy small processing equipment - Establish contract farming Who is leading? Partner Financial Institutions.
  • 13. 13 AgriTrade Methodology Small Holder Farmers Rural Agro-dealers, Agro Merchant, Contract Farming Entity Processor Retailer Inputs Producer / Importer Agro-dealer, Ag Merchant, Contract Farming Entity AgriTrade Credit AgriTrade Credit AgriTrade Credit AgriTrade DairyFin Credit
  • 14. 14 AgriTrade Methodology: Design Principle IRD Banks max $5 million Recoverable 4-Year Loan: USAID ZIMAIED PROJECT match 1:1 100% risk $500 - $200,000 loans Technical Support M&E Technical Support M&E Agribusinesses & Producers
  • 15. 15 ZIMAIED AGRITRADE RESULTS Increased MARKET COMPETITION for produce Promotes CA$H–based marketing culture Increases DISPOSAL INCOME of surplus-producers Stimulates CONSUMPTION expenditure…. Stimulates SAVINGS propensity….…. Stimulates INVESTMENTS on family-farm…
  • 16. 16 AgriTrade Results: Portfolio AgriTrade Portfolio for the week ending 20/08/2014 Number Value (US$) Cumulative Loan Disbursements 1,723 $15,246,271 Cumulative Loan Repayments 1,398 $13,063,510 Active AgriTrade Loan Portfolio 259 $2,177,761 Smallholder business transactions funded from the Loans $29,298,825 USAID Investment and Return on Investment (ROI) (a) Matching Funds from USAID utilized (b) Leverage Ratio ( Loans disbursed per $ USAID) (c) SHF Impact Ratio (Agritrade purchases per $ of USAID) $3.5million 4.36 8.37
  • 17. 17 AgriTrade Results Under $5k $2,176.7 14% $5k - $10k $1,068.0 7% $10k to $50k $2,519.5 16% $50k to $100k $2,065.8 14% Over $100k $7,416.2 49% Value of loans disbursed per size of loan ( x $1,000) Under $5k, 1328, 77% $5k - $10k, 170, 10% $10k to $50k, 149, 9% $50k to $100k, 33, 2% Over $100k, 43, 2% Number of loans disbursed per size of loan
  • 18. 18 AgriTrade Results: Distribution of Borrowers 0 -$1.9m $1.9m-$3.8m $3.8m-$5.7m $5.7m-$7.6m + $7.6m Harare $5,469,125 36% Mashonaland $3,443,265 23% Manicaland $1,826,499 12% Masvingo $1,811,255 12% Midlands $1,780,092 12% Matabeleland $916,034 6% Value of total disbursed AgriTrade loans per location of borrower by 20 August 2014
  • 19. 19 AgriTrade Results – Provincial Distribution 0 -$3.7m $3.7m-$7.3m $7.3m-$11m $11m-$14.6m + $14.6m Mashonaland $17,294,333 59% Manicaland $4,616,856 16% Masvingo $3,081,614 11% Midlands $2,407,378 8% Matabeleland $1,898,643 6% Value of actual purchases of commodities from smallholder farmers with AgriTrade loans by 20 August 2014
  • 20. 20 AgriTrade Results: Major Purchases from Smallholders Cattle 60% Inputs 13% Maize 12% Potatoes 3% Commodities purchased with disbursed loans Bananas Cattle Cow Peas / Other Legumes OtherLivestock Nuts Inputs Maize Other Fruits Other Commodities Vegetables Paprika / Other Chillies Potatoes Sorghum
  • 21. 21 AGRITRADE DIRECT LENDING TO SMALLHOLDER HORTICULTURAL FARMERS Scalable Experiences for horticulture from - TWO programs – TWO approaches A. DAIRYFIN FACILITY: MK/LOL/ZADF: USAID B. ZIMAIED AGRITRADE Direct Lending Initiatives
  • 22. 22 DAIRYFIN – Revolving Credit Facility 1. Partners:Investors USAID & MK. NGO Partners:IRD/Land’O Lakes/ZADF 2. Initial Capitalization:36 incalf cross-breed dairy heifers - 50% MK contribution + 50% USAID Contribution 3. MK DairyFinance Facility Terms: - 25% deposit, 24 months loan tenor, 13% APR 4. Collateral Security Requirements: + Cessation on insured dairy heifers purchased with DairyFin loan, + Smallholder group solidarity loan guarantees + Stop-order loan repayment agreement with milk processor 5. Performance: +100% disbursed, 100% repayments,100% Loan Principal Recovery +400% Return on Investment for USAID funds by end of Year1
  • 23. 23 CASE 2: AgriTrade Direct Lending to Farmers • Target smallholder irrigation farmers under ZimAIED project – 3 years technical support on production and marketing – 35 irrigation schemes +selected dry land project areas • Limited interest among Financial Institutions • ZimAIED AgriTrade Strategy: – Partner reputable FI willing to invest own funds in DLF – Provide multi-disciplinary comprehensive technical & frontline support to FI backed by ZimAIED’s multi- disciplinary team
  • 24. Lending terms of AgriTrade Financial Partners Financial Institution Interest rate & Est fees Target Value Chains Loan Repayment Terms Turn around time Commercial banking partners 11%- 24% pa 2% - 3% flat Banana, potatoes, high value mixed vegetables, export horticulture Monthly interest plus bullet principal 14 -45 days MFI Partners 24% - 48% 5% flat Irrigated mixed vegetables, paprika, bananas, beans Monthly interest Bullet principal. 3 to 7 days
  • 25. Direct Lending to Farmers Small Holder Farmers Groups Viable Enterprises High potential Good track record Low credit risk Market Buyer Rural Agro-dealer Agro-merchant Contract farming Ltd Local Inputs Retailer (AgriTrade client) ROLES & RESPONSIBILITIES Farmer Groups Agric Extension Development Partners Research & Advisory Policy Makers ROLES OF MARKET BUYERS Timely BUYING Competitive market prices Cash payment system: Intelligence gathering Timely delivery of input packs to approved borrowers Actors Inputs Microfinance Input Credit Provider (AgriTrade/ZMWF Client) Commercial Bank Credit Provider (AgriTrade/CREATE Client) contract Timely approval of loans to QUALIFIED farmers Appropriate loan repayments LIQUIDITY OF FINANCIAL INSTITUTIONS Timely loan approval for QUALIFIED buyers s Marketable Output Risks Supply
  • 26. 26 $199,648 $281,576 $395,050 $445,878 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 RESULTS : Cumulative Loan Portfolio Direct Lending to Farmers in Smallholder Irrigation Scheme +20 out of 35 target irrigation schemes linked to credit +1447 out 7800 smallholder irrigation farmers accessing credit +90% - 100% loan repayment rate in 5 irrigation communities + 50% to 75% loan repayments in 6 irrigation schemes
  • 27. 27 Key Results and Challenges Key Results • 22 of 35 Smallholder irrigation schemes under ZimAIED project now linked to credit • 10% to 25% top performers received input loans directly from a private loan provider • 85% to 100% loan repayment rate attained in most schemes • Capacity building of partner MFI in SHA lending enhanced Challenges • Ltd number of well-functioning irrigation schemes with secure reliable water supply • Historical debts to ZINWA/ZESA render functional irrigation schemes too risky for credit • Limited irrigation management capacity to ensure delivery of quality produce to contractors on TIME • Ltd capacity of credit providers
  • 28. 28 Conclusion • Making financial markets work for smallholder horticultural farming communities is NO longer a formidable challenge •Financing models that work for Zimbabwe are KNOWN. • Lessons learnt from Min of Agric partner NGO projects (eg ZimAIED Agritrade, DairyFin) are replicable and scalable • Special RCF/CGF piloted are profitable forms of PPPs capable of leveraging soft capital from donors to finance commercially-driven smallholder horticultureVC development • WANTED: Private agribusinesses with commercial appetite and entrepreneurship drive to seize opportunities in domestic smallholder horticultural value chains INVISIBLE to the rest! • Challenge: Asymmetric information, High learning cost