Partnerships can close the agricultural finance gap and increase productivity

There is an estimated credit gap of $170 billion per year in smallholder agriculture finance. New partnerships between agribusinesses and financial institutions can solve this, by enabling sharing of information, distribution channels and risks.

In 2021, IDH Farmfit, in collaboration with the Office of the UNSGSA’s Agricultural Finance Working Group, will launch a pilot in agricultural finance making it possible to offer new financing options to smallholder farmers in Kenya. The pilot partnership will bring together agribusinesses, banks and fintechs on a digital platform to share anonymized data, which allows them to design better services and more accurately estimate risks.

For more exciting examples of partnerships also download our Action Report on innovations for smallholder finance here.