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Romania: Bank Lending to Small and Medium Sized Enterprises in Rural areas; an Analysis of Supply and Demand

Report N. 9 - January 2005










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    Bulgaria: Bank Lending to Small and Medium Sized Enterprises in Rural Areas; an Analysis of Supply and Demand
    Report N. 8 - January 2005
    2005
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    Bulgaria’s entry into the EU in 2007 will have a significant impact on the country’s small and medium sized enterprises (SMEs) operating in rural areas and the banking sector servicing them. EU standards and regulations related to specific sectors of industry (particularly food industry) coming in place in the next two years, as well as expected competition from the EU market, will change dramatically the scene in which rural SMEs operate. New investments are needed in order for this transition process to be successful. Commercial banks operating in rural areas have a vital role in realising this goal. This publication is part of report series published under the FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme. The series presents sector reviews and studies undertaken in Central and Eastern Europe that cover development issues and innovative areas to increase investment in agriculture in the region. Bulgaria's entry into the European Union in 2007 will have a significant impact on the country's small and medium sized enterprises (SMEs) operating in rural areas. EBRD's Financial Institutions team, together with its Agribusiness team, has developed a Facility to mix EU grant and EBRD loans in favour of rural SMEs in EU accession countries. EBRD called upon FAO's expertise to review lending opportunities in Bulgaria's rural sector. This report was prepared to put forward recommendations to EBRD and local financial intermediarie s, on which clients the EU/EBRD Facility should focus and on the types of financial products required to serve these new clients. The analysis can be used by other local or international financial institutions interested in rural credit.
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    Strengthening the Role of Small and Medium-Size Enterprises in Improving Food Environment and Nutrition in Eastern Africa - TCP/SFE/3906 2025
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    Repeated calls have been made for increased engagement with the private sector in the creation of changes in food systems in order to address malnutrition in low- and middle-income countries (LMICs). The private sector remains the main provider of food commodities and can increase the availability, accessibility and acceptability of nutritious foods on local markets, while increasing opportunities for diverse agricultural production systems through dietary diversification. The sector already plays a key role in nutrition by producing and promoting the consumption of ready-to-use therapeutic foods to treat children with acute malnutrition in LMICs. Private companies also help to fight micronutrient deficiencies by manufacturing nutrient-rich and fortified foods, fortifying staple foods, and conducting biofortification programmes. Other contributions to nutrition include product reformulation for value addition, responsible labelling standards, good packaging practices and good food safety practices.
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    Micro-, small and medium-sized enterprises increase supply of nutritious food in local markets
    Success stories from Kenya and Malawi
    2025
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    Micro, small and medium-sized enterprises (MSMEs) are key players in local food supply chains, handling about 65% of the food consumed in regions like Africa and South Asia. Therefore, they are a key entry point to promote and increase the local availability of nutritious food and improve the food environment, while being a source for income and employment, and instrumental for the economic inclusion and self-reliance of women and youth.The success stories presented in this publication showcase MSMEs in Kenya and Malawi increasing their production of nutritious food and suppling these to the local markets as the result of a specifically designed mentoring and coaching program. The program promoted their knowledge and skills in production, food safety, conservation and proper handling, diversification of products, and marketing of nutritious food, complemented by general business and financial management skills and reinforced by the investment in basic equipment. The success stories show that MSMEs enhanced their capacities to introduce and sustain strategic improvements that increase their supply of nutritious food; that unmet local demand for nutritious and diverse food bears opportunities for MSMEs; that the mentoring and coaching program, by identifying individualized business solutions, is applicable to all food products and stages of the food supply chains, and that these activities are therefore adaptable to the food system priorities of each territory.

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    What will be needed to realize the vision of a world free from hunger and malnutrition? After shedding light on the nature of the challenges that agriculture and food systems are facing now and throughout the 21st century, the study provides insights into what is at stake and what needs to be done. “Business as usual” is not an option. Major transformations in agricultural systems, rural economies, and natural resources management are necessary. The present study was undertaken for the quadrennial review of FAO’s strategic framework and for the preparation of the Organization Medium-Term plan 2018-2021.
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    End hunger, achieve food security and improve nutrition are at the heart of the sustainable development goals. The World has committed to eradicate extreme poverty and hunger by 2030. But climate change is undermining the livelihoods and food security of the rural poor, who constitute almost 80 percent of the world’s poor. The effects of climate change on our ecosystems are already severe and widespread. Climate change brings a cascade of impacts from agroecosystems to livelihoods. Climate change impacts directly agroecosystems, which in turn has a potential impact on agricultural production, which drives economic and social impacts, which impact livelihoods. In other words, impacts translate from climate to the environment, to the productive sphere, to economic and social dimensions. Therefore, ensuring food security in the face of climate change is among the most daunting challenges facing humankind. Action is urgently needed now to reduce vulnerability and increase resilience of food systems to ensure food security and good nutrition for all.