African Rural and Agricultural Credit Association (AFRACA) Presentation_By Millicent Omukaga
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Transcript of African Rural and Agricultural Credit Association (AFRACA) Presentation_By Millicent Omukaga
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INTEGRATING RURAL YOUTH IN AGRICUTURE
Millicent Omukaga, Kenya.August, 2014
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AFRACA- IFAD1. IFAD Development Grant2. Shared Objectives: empowering rural Africa to achieve improved livelihoods and food security3. Outputs:•Innovative technologies and approaches•Awareness, advocacy and policy dialogue •Capacity of member institutions to deliver a range of services in support of poor rural people, and•Lesson learning, knowledge management and dissemination of information on issues related to rural poverty reduction promoted among stakeholders within and across regions.
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MEMBERSHIP• Central Banks and CB similar institutions;• Agricultural and Development Banks;• Commercial Banks;• Microfinance Institutions;• Apex Organizations such as Microfinance
Networks and SACCOs• Universities, Training and Research
Institutions;• Insurance organizations; • Line Ministries and Ministerial agencies.
Ordinary/Associate
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WHY MFI• Rural outreach• Customized product offering• Social/development impact
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CONSTRAINTS• Lack of collateral (indiv loans)-
landlessness and insecure land tenure• Weak financial literacy- weak basis for
proper loan appraisal• Client over-indebtedness- loans to pay off
existing debts• Regulatory landscape- mission drift,
strict prudential regulations• Limited capital for MFI- higher cost of
funds
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CONSTRAINTS
• Limited innovative financing (credit and savings)- payments, insurance
• Restrictive risk management practices
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INNOVATIONS• Warehouse receipts system• Value chain financing• Private equity funds• Integrated & supervised financing• Credit reference/information sharing• Micro- insurance (crop, livestock)• Guarantee and risk-sharing schemes • ICT and mobile money
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POLICY DEV.AND ADVOCACY• Working with Goodwill ambassadors, re-known
rural/agricultural finance experts and institutions
• Visits by AFRACA Board to establish working relationship with select regional (AU & AfDB), sub regional (EAC, SADEC and ECOWAS) and country relevant players
• High-level stakeholder workshops in the Continent.
• Central Banks Forum• Policy briefs/policy position papers, newsletters
and thematic research papers
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CAPACITY BUILDING• Action research by AgriFinance specialists aimed
at identifying demand driven innovative models, and best practices in rural/agricultural finance.
• Peer Learning (TCDC) programme, • Specialized MFI Trainings including ToTs• Thematic MF Workshops guided by action based
research on rural and AgriFinance • Tailor-made demand driven experiential learning
programmes for board and executives • Specialized women empowerment exposure
programmes
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CAPACITY BUILDINGThe capacity building enables MFI member institutions to:•Carryout research in rural finance•To develop innovative products to meet the needs of the clientele.•Improve the day to day operations of members institutions
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INFORMATION AND KNOWLEDGE MANAGEMENT• AFRACA News- quarterly newsletter• Workshop proceedings and volumes of
research• AFRACA Website (www.afraca.org)• Workshops and seminars• Subscription into international journals and
library.• Rural and Microfinance brochures,• Annual reports, documentaries• E‐newsletter
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CONCLUSION• AFRACA is committed to delivering
demand-driven and value adding services to MFIs and involving them actively in the network.
• AFRACA continues to offer services geared towards improving the professionalism and sustainability of MFIs and through their participation to reinforce the sustainability of AFRACA as a network.
• AFRACA continues to interest both private and public institutions to support its activities through one-off or longer term partnerships.