This document summarizes testing innovations in livestock and dairy value chain finance models in East and Southern Africa. It describes the Ekwatho Financing Scheme model in Namibia which guarantees farmers a minimum price, production support, and financing through loans administered by the financial institution and livestock company. It also outlines the Swaziland beef value chain finance model and a dairy market hubs model in Tanzania which connects farmers, transporters, input suppliers, processors and buyers through collection and bulking centers. The work is a partnership between various organizations and universities in Tanzania and Swaziland and is funded by IFAD, Irish Aid and CGIAR programs.

1. Testing innovations in livestock and dairy
value chain finance:
insights from East and Southern Africa
Jo Cadilhon, Nadhem Mtimet, Signe Nelgen, Edgar Twine and Heiner Böhme
International Conference on “Fin4ag: Revolutionizing Finance for Agri-Value Chains”,
Nairobi, Kenya, 14-18 July 2014

2. Ekwatho Financing Scheme
E-mail: hbohme@meatco.com.na
MEATCO
Participating
Farmer
Financial Institution
Communication
SLAs
• Guaranteed minimum price;
• Producer facilitation;
• Database administration;
• On-farm inspections;
• Technical advice & support;
• Financing;
• Loan & collateral administration;
• Balloon interest payment
(cumulative);
• Loan application;
• Beef production;
• Allow quarterly weighing &
inspection;

3. Swaziland beef value chain finance
model
Email: n.mtimet@cgiar.org and s.nelgen@cgiar.org

4. Dairy market hubs model
TRANSPORTERS
TESTING
FARMERS
FIELD DAYS
FEED
SUPPLY
AI &
EXTENSION
OTHER RELATED
MEs
CHILLING or BULKING
FACILITIES
HARDWARE SUPPLIERS
VILLAGE BANKS
Email: e.twine@cgiar.org

5. ILRI’s work presented here is implemented in a partnership
with:
Tanzania:
• Sokoine University of Agriculture
• Heifer International
• Faida MaLi
• Tanzania Dairy Board
Swaziland:
• Swaziland Ministry of Agriculture
• Swaziland Water and Agricultural Development Enterprise
Acknowledgements

6. This work was undertaken as part of the CGIAR Research Program on
Policies, Institutions, and Markets (PIM) led by the International Food
Policy Research Institute (IFPRI). Funding support for this study was
provided by the ‘Innovative beef value chain development schemes
in Southern Africa’ project of IFAD, the ‘MoreMilkiT’ project of Irish
Aid, the CGIAR Research Program on Livestock and Fish, and
the CGIAR Research Program on Policies, Institutions, and Markets.
This presentation has not gone through IFPRI’s standard
peer-review procedure. The opinions expressed here belong to the
authors, and do not necessarily reflect those of PIM, IFPRI, or CGIAR.
Acknowledgements

7. The presentation has a Creative Commons licence. You are free to re-use or distribute this work, provided credit is given to ILRI.
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