Catalyzing Smallholder Agricultural Finance

This report examines the scale, scope, and need for smallholder financing, with a view to expanding financing for smallholder farmers and better incorporating them into more formal value chains. In mapping pathways to growth, this report explains the roles different actors can play to catalyze a sustainable agricultural finance industry. These actors include:

• Multinational buyers;
• Commercial lenders;
• Impact driven smallholder agricultural lenders (i.e. social lenders);
• Donors, impact investors, and technical assistance providers.

The report is based on interviews with 65 experts, secondary research, and five in-depth case studies. It includes directional estimates of the size of the market for smallholder agricultural finance. It provides a strategic framing of certain crop and market characteristics, as well as a fact base on banks, financial institutions, companies, and non-profits that are developing solutions for smallholder agriculture financing. The report aims to help relevant actors decide how to deploy their respective capabilities and resources to the most relevant need and opportunity.