GIZ FRSD launches expert group on scaling up digital, agricultural value chain financing
By Pa
Modou Cham
The
ECOWAS Fund for Regional Stabilization and Development (FRSD) Gambia pilot
project implemented by GIZ, in partnership with CepRass launched an expert
group to develop policy guidelines for scaling up digital and agricultural
value chain finance capability in The Gambia.
The
multi-stakeholder expert group launched today at the Bakadaji Hotel is
designed to help identify obstacles and potential for agricultural value chain
financing innovations in the Gambia, good practices and lessons to eradicate
barriers for women, youth and marginalized groups.
Ms.
Evelin Ayadi-Krenzer, ECOWAS FRSD Programme Manager thanked GIZ FRSD for the
job well-done in promoting financing for smallholder farmers, adding is
crucial in sustainable development.
“This
Gambia project is a pilot programme. From here we will continue to extend our
projects to Guinea Bissau, Niger and other countries to get lessons learn and
ideas on those countries. We know agriculture is the backbone of most of the
countries and smallholder farmers are struggling with access to finance,” she
said.
She
further stated that it’s a well-known issue and challenge and they are
searching possibilities for finance, thus affirming that smallholder farmers
are struggling with this critical barrier.
Abdoulie
Jallow, team leader, ECOWAS FRSD Gambia pilot thanked his team for the
milestone in the implementation of the ECOWAS FRSD project in the Gambia. He
said that the development of the agricultural sector in the country has been
very much tampered with by the lack of access to finance, particularly for
young people, women and vulnerable communities.
“The
aim of the launching is to create a conducive environment for financial inclusion
and agricultural value chain finance. This is a noble initiative for all actors
and the launch of the agricultural chain taskforce or expert group will help in
the development of the agricultural value chain.
Ousman
Touray, Senior Programme Officer of FAO also explained that if the country
wants to be self-sufficient in food or for the economy to grow, agriculture has
to change and farmers need to have access to finance.
He
said that they started the idea in 2018 when they gave a value chain assessment
for nine agricultural commodities in the country.
“This
includes chicken, small ruminants, and mangoes, among others. These show that
the country could provide food items if there is support. We also did access to
financial analysis of commercial and microfinance institutions in the country.
The biggest surprise was, out of the 25% of the entire commercial banks in the
country, only 2-5% of their total investment is accessible to farmers.”
He noted there
is a big risk factor that the commercial banks think that if they give monies
to the farmers, they will not be able to pay it back.
At the edge of
the event, there was a media roundtable on the poultry value chain where
stakeholders dwelled on challenges and ways forward to better improve the
sector.
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