Credit Risk Prevents Growth of Small-Medium Scale Farming in Africa

October 17th 2020 by Acheampong Atta-Boateng

“This self-reinforcing mechanism makes it incredibly difficult for farmers to grow their business to a point where a bank would feel confident lending to them.” Small and medium scale farms contribute to 80% of the food consumed in Africa, yet these farmers often face the most difficulty receiving financial support. Unable to obtain loans, smallholder farms struggle to adopt new technology that could increase future yield, or even obtain the credit necessary to purchase enough supplies...
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African Farmers & Credit: A Misaligned Relationship

September 25th 2020 by Prince Boateng

A 2019 World Bank brief explains how global population growth, changing dietary preferences, and various climate risks all contribute to “an ever increasing need to invest in agriculture.” So much so that global demand for food is expected to increase 70% by 2050, which will require at least $80 billion of imbursements annually, much of which will need to come from the private sector. However, the 2019 Rural and Agricultural Finance State of the Sector Report, a joint publication by ...
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African Agriculture’s Untapped Potential: An Opportunity for Impactful Lending

May 29th 2020 by Prince Boateng

AgroFides recognizes the immense opportunity currently presented to creditors to capitalize financially on the African continent; in the last decade, more than half of the world’s most rapidly expanding economies have been African. Moreover, the World Economic Forum predicts that by 2030, 43% of Africans will belong to the middle or upper classes, which will translate to a higher level of demand for goods and services (household consumption is expected to rise to $2.5 trillion), suggesting...
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