Facilitating Access to Financial Services for Smallholders and Agricultural SMES in Ethiopia - MTF/GLO/069/RBK

Facilitating Access to Financial Services for Smallholders and Agricultural SMES in Ethiopia - MTF/GLO/069/RBK

Year of publication 2022

Place of publication Rome, Italy ;

Pages 2

Publisher FAO ;

Product type Project

Edition 1

Full item page

Synopsis (short abstract) In Ethiopia, smallholder farming households account for an estimated 95 percent of agricultural production and are a determining factor for the country’s food security. However, they have difficulties accessing the financial services they need to purchase inputs and capital to invest in their agricultural operations. This limits their ability to improve production and move away from subsistence farming. To a limited extent, Producer Organizations (POs) support the sector by providing inputs, collection, storage and marketing services to smallholders. However, they lack the resources to become more market and business oriented, and significant demand for financial services at the POs and union level remains unmet. To respond to the demand of POs’ members for input and output finance, both microfinance institutions (MFIs) and POs required further institutional capacity strengthening, and improved business and managerial skills to respond and relate to their clients and members. Against this background, the overall goal of the project was to address the constraints in the demand for and access to financial services faced by POs and their members, and scale up sustainable financial linkages between the MFIs and the POs in West Arsi , Oromia, Ethiopia.

Language English

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