responsAbility accounting for largest share of CSAF lending
According to the Council on Smallholder Agriculture Finance (CSAF) Annual Report, responsAbility now accounts for the largest share of CSAF lending.
Total CSAF disbursements increased to USD 682m, 130 of which were new borrowers. These businesses sourced or provided products and services to an estimated 2.3M smallholder farmers, about 30% of whom are women.
“The outlook is certainly positive,” said Gaëlle Bonnieux, Head Agriculture Debt Financing for responsAbility. “77% of existing borrowers worked with just one CSAF member in 2016, up from 68% in 2014, meaning that the increase in total lending does not appear to be a result of lenders crowding the same borrowers. And while much of the lending is short term, long term finance is increasing.”
Gaëlle also noted some slowing in growth, particularly in coffee, due to both endogenous risk factors and exogenous market risks. It seems that other commodities, such as nuts and cocoa, have picked up the slack however, and the CSAF report includes several ideas on how to address further risks, including investment-ready businesses through smart subsidies.”
Download the complete report here.