CTA Fin4Ag programme EN

International Conference

Programme

14-18 July 2014

Nairobi, Kenya At the Kenya School of Monetary Studies

www.fin4ag.org International Conference Series: Rethinking smallholder agriculture.

Co-hosted by:

Supported by:

International media partner:

Sponsored by :

International Conference

Programme

14-18 July 2014

Nairobi, Kenya At the Kenya School of Monetary Studies

www.fin4ag.org International Conference Series: Rethinking smallholder agriculture.

Co-hosted by:

Supported by:

International media partner:

Sponsored by :

CTA at Fin4Ag: Michael Hailu, Director of CTA Lamon Rutten, Programme Manager, PMI Thierry Doudet, Programme Manager, KMC Oluyede Ajayi, Senior Programme Coordinator, ARD Policy Vincent Fautrel, Senior Programme Coordinator, Value Chain Development Stéphane Gambier, Senior Programme Coordinator, Communication Benjamin Kwasi Addom, Programme Coordinator, ICT Thierry Lewyllie, Programme Coordinator, Web Ken Lohento, Programme Coordinator, ICT Minielle Tall, Associate Programme Coordinator, Media and Communication Nawsheen Hosenally, ICT4Ag Assistant Armelle Degrave, Associate Programme Coordinator Administration Ellen Mulder, Project assistant, PMI Landry Fanou, Intern, PMI

Editorial management: Stéphane Gambier, Landry Fanou, CTA, The Netherlands Design and layout: Stéphanie Leroy, France Printed by: Latimer Trend & Company Ltd, UK © CTA 2014 4

Partners

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Table of Contents

Welcome Messages .....................8

Parallel Events 2nd African Continental Briefing .....46 Side Meetings .............................47

Concept Why the Fin4Ag conference?.........11 Conference Streams.....................12

Organisers Partner Organisations...................48

Plug and Play Day Description .................................13

Practical Information

Digital platforms for agri-value

Quick Reference ..........................53

chain finance ...............................14

Floor Plan ...................................54 Google Map of Nairobi ..................55 2nd African Continental Briefing Schedule ....................................56

Main Conference

Plug & Play Day Schedule ..............57

Day 1.........................................20

Conference Schedule ....................58

Day 2.........................................28 Day 3.........................................38 Field Trips ...................................44

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Welcome Messages Michael Hailu, Director of CTA

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t is my great pleasure to welcome you to the Fin4Ag conference! There is an urgent need to transform smallholder agriculture into a profitable and sustainable enterprise in Africa, the Caribbean, the Pacific (ACP) and other developing countries around the world. However, bringing about real change depends, to a large extent, on access to finance that enables smallholder agriculture to grow and prosper.

Prospects for agriculture are promising. Populations in urban areas are expanding, the urban middle class is growing rapidly, and intra-regional and international trade opportunities are booming. Smallholder farmer access to finance is critical to meet this growing demand from urban and global markets.

Traditional agricultural financing methods – with state-owned agricultural banks providing subsidised direct credits to farmers – have been a costly failure. Micro-finance usually has interest rates and repayment arrangements that are unsuitable for small-scale farmers. Fortunately, value chain finance provides an alternative to these two approaches. For farmers, value chain finance generally comes with improved access to inputs as well as a more secure market for their crops. Where a value chain has functioned well, longer-term finance for mechanisation, irrigation, and storage and processing facilities becomes possible. For financial institutions, value chain finance addresses the frequent inability of farmers to repay loans and enables them to lend products for the agricultural sector that are both safe and readily scalable. Moreover, successful agri-value chain finance can make agriculture a more attractive option for young people in rural areas, and contribute to women’s empowerment when traditional finance is normally not available to them.

In recent years, CTA has been working at promoting agri-value chain finance in ACP countries. For example, in collaboration with the Eastern Africa Grain Council we have strengthened the capacity of our partners on structured grain trading, which involves the use of agreed standards, certified warehouses, inventory credit, and commodity exchanges. CTA is also working with various stakeholders, notably, the African Rural and Agricultural Credit Association (AFRACA), in building capacity and sharing knowledge on agri-value chain finance best practices as well as on the design of policies that will help to scale up success practices.

The Fin4Ag conference gives you a unique opportunity to learn about the different tools and initiatives that facilitate successful smallholder-inclusive agri-value chain finance. You will have the opportunity to interact with central bank governors and learn what they can do to create an enabling environment for such finance. You will also learn of the new developments in ICTs, which facilitate financing in remote areas and enable secure financial transactions.

This conference is an opportunity to bring about a paradigm shift in the way that finance can unleash the potential of agriculture around the world.

I would like to acknowledge the excellent collaboration with our co-host AFRACA, the Kenya School of Monetary Studies and the Central Bank of Kenya, as well as our co-sponsors and media partners, who have contributed enormously to make this Fin4Ag conference a reality.

I am delighted to welcome you to be part of this revolution. I wish you a pleasant conference and an enjoyable stay in Nairobi.

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Saleh Usman Gashua, Secretary General of AFRACA

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t is a great pleasure to welcome you all to the Fin4Ag international conference here in Nairobi. The African Rural and Agricultural Credit Association (AFRACA) is pleased to be co-hosting this international initiative with CTA, which is consistent with AFRACA’s intention to develop an inclusive financial sector aimed at empowering rural and agricultural communities in Africa. I am optimistic that the conference will be a game changer and a recipe for accelerated rural and agricultural development in Africa.

Established in 1977, AFRACA was designed to be a high level coordinating body for rural and agricultural financial inclusion in sub-Saharan Africa. It has been the focal point and information hub for the promotion of rural and agricultural finance.

In fulfillment of its mission, AFRACA’s core programmes are organised around a thematic approach to rural and agricultural finance and implemented in close collaboration with member institutions and development partners through activities and workshops/conferences on cross cutting/emerging topics. The current Fin4Ag conference is with no doubt a real contribution to AFRACA’s agenda, specifically regarding our ongoing key initiatives on inclusive agri-value chain finance.

AFRACA is gratified to note that financial access has significantly improved in countries like Kenya, mainly through the use of new technologies, multi-stakeholder initiatives and more investment in the sector. I am convinced that the Fin4Ag conference will catalyse the establishment of appropriate rural and agricultural finance policies and provision of inclusive financial services across Africa.

Whether you are a farmer, farmer organisation, banker, financial institution, government or governmental agency, processor, input supplier or trader, this conference provides you with a platform to network and establish contacts with key players in the industry, and focus on existing functional models of agri-value chain finance that enhance food security and job and wealth creation, along with policy frameworks that support such initiatives.

On behalf of the AFRACA network, I would like to most sincerely thank CTA and other development partners for the outstanding job in supporting regional and continental finance activities, and for this conference. Much gratitude goes to the Government and people of Kenya, the Central Bank of Kenya, the Kenya School of Monetary Studies, the AFRACA Board and member institutions, and other partners who have worked hard to ensure everything is in place for the effective running of this conference. I am grateful to you all for your interest, willingness and co-operation to participate in the conference as we look forward to partnering with you beyond the conference in developing an inclusive financial sector in Africa.

I finally invite you to have an open mind that is ready to share, be challenged, positively criticised and learn. I wish us all a vibrant experience at the Fin4Ag conference and an unforgettable time in Kenya.

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Dr. Evans Kidero, Governor of Nairobi County

I

take this opportunity to welcome you to Kenya for the international conference on Fin4Ag: Revolutionising finance for agri-value chains, that is taking place in Nairobi County.

The conference has brought together over 500 private and public sector representatives, African banks and financiers, regional and national farmers’ organisations, agri-value chain stakeholders, government officials, development practitioners and academics to share experiences and lessons learned on how to contribute to smallholder-inclusive agri-value chain finance in ACP countries and beyond. The increasing use and innovations of ICTs continues to transform agriculture in Africa, with Nairobi County being the region’s ICT hub. To have such a meeting in Nairobi is a demonstration of the strategic positioning of Nairobi County in the region. In order to build on key ongoing initiatives of the African Rural and Agricultural Credit Association (AFRACA) on inclusive agri-value chain finance, I appeal to participants to use this premium opportunity to forge and strengthen partnerships that will indeed revolutionise finance for agriculture.

As you will notice, the programme is packed with a variety of highly interactive sessions aimed at getting participants working together to solve common challenges in agricultural finance. As you learn from best practices, discover exciting new tools and mechanisms, and meet leaders of agricultural finance from around the world, Kenya has numerous examples of how agricultural finance is already being transformed on the ground and I encourage you to find time to explore these.

Please also take time to enjoy Kenyan hospitality and tourism you may wish to take a walking tour to discover the highlights of Nairobi: the City Hall, the Parliament Buildings, the Jomo Kenyatta Mausoleum, the August 7th Memorial park, the National Archives, Uhuru Park as well as a visit to the Nairobi National Park, where you’ll have an opportunity to see Kenya’s famous wildlife and have a taste of Kenyan cuisine at the park’s restaurant.

I sincerely thank AFRACA, in collaboration with CTA, the Central Bank of Kenya, and other partners, not only for organising this conference but also for their engagement and the many practical outcomes expected from this conference.

Once again, welcome to Nairobi and I wish everybody a fruitful conference and happy stay in the city.

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Concept Why the Fin4Ag conference?

roper access to finance can act as a driver of agricultural growth and transformation in African, Caribbean and Pacific (ACP) countries. There is an increased need to secure supply (both quality and quantity) of the food commodities that fast-growing and increasingly competitive markets require. If the proper conditions are created, African agriculture is poised for rapid growth to meet the increasing demand from urban and global markets. One such condition is a multifold increase in external financing for agriculture.

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Agricultural finance institutions, and the policies, rules and regulations under which they operate, are lagging behind changes in the ‘real economy’. The global financial crisis has reduced the risk capacity of banks, so they need more capital-efficient methods for financing the commodity sector.

New mechanisms have to be designed to permit capital market investors to become agricultural financiers. Agri-value chain finance could be the answer for both bankers and investors, especially given that innovations in ICTs have made such financing easier and cheaper.

Recent years have seen significant value chain finance innovations in certain countries but these are slow in spreading across borders or, for that matter, across institutions. In these circumstances, decision-makers in farmers’ organisations, financial institutions, government bodies and other institutions interested in agricultural finance should shift their approach from incrementally trying to improve their existing models to reinventing their business or regulatory models in order to capitalise on the new possibilities.

In this context, the Fin4Ag conference aims to bring together the critical actors for building a modern and high-performing agricultural financing system. The conference will help decisionmakers, from both public and private sectors, to break through the walls that so often prevent innovation, in this case for smallholder inclusive agricultural finance. It is time for a paradigm shift in agricultural finance. Let us make the revolution happen!

“ We must break through the walls that so often prevent innovation. It is time for

”

a paradigm shift in agricultural finance.

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Concept Conference Streams

Stream 1:

Stream 3:

Revolutionising finance for agriculture: the tools

Cross-cutting issues in agri-value chain finance

The last decade has seen tremendous development of innovative tools, best practices and lessons in agri-value chain finance. Within this stream of sessions, Fin4Ag conference participants will have a unique opportunity to share and discuss their knowledge about various tools that permit successful agri-value chain finance. For instance, discussions will cover how to scale up successful models of warehouse receipt finance and collateral management in ACP countries. Sessions under this stream will also look at the potential for creating new instruments for farmers to access the capital market. Others sessions will focus on the design of agri-value chain financing mechanisms for specific sectors (horticulture, fisheries, livestock) or purposes (access to agricultural inputs and mechanisation). Ways in which financiers can help develop effective value chains linking farmers to cities will be assessed and best practices in agri-value chain finance will be shared.

The Fin4Ag conference will feature a number of ‘How to’ sessions – in particular, three regional farmers' organisations from Africa and the Caribbean have identified their own priorities in increasing value chain finance to farmers. 'How to move to implementation' will be the topic of a half-day of sessions for each organisation.

Risk management (including price and weather risk) will also be discussed as well as financial instruments to enable farmers to make their production more resilient to climate change. Information, communication and knowledge management (ICKM), as well as training needs, are addressed under this stream. Finally, specific challenges faced by women and young entrepreneurs for access to agri-value chain finance will be discussed.

Stream 2: Policy development for agri-value chain finance In the 19th and early 20th century, countries now members of the Organisation for Economic Co-operation and Development relied heavily on their central banks to boost the agricultural sector's access to finance, with facilities such as dedicated discount windows for warehouse receipt finance, the creation of bonded warehouses and the development of specific agricultural financing tools. Such policies have not figured to any significant degree in ACP central bank work programmes. Given the critical importance of boosting agricultural growth, it is high time to revisit the role policymakers and regulatory bodies such as central banks can play to create an enabling environment for agri-value chain finance. The sessions under this stream will enable participants to learn not only from historical experience but also from some of the innovative central bank programmes in other parts of the world.

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Plug and Play Day Monday, 14 July

Description

he Plug and Play Day, the second of its kind, will showcase a range of ICTs and mobile platforms developed and being implemented to support access to agricultural finance along the value chain. The day focuses on digital/mobile financial services for agricultural and rural development and covers platforms supporting access to credit, payments, savings, insurance and risks management for value chain actors. It offers ICT innovators the unique opportunity to gain a broader perspective of finance ICTs; users to discover the latest ICT platforms for value chain finance; investors to identify viable areas for investment; donors to discover emerging areas for support; and policymakers to understand and explore areas for action. It is a fantastic opportunity for a valuable and very practical insight into new technologies and a true hands-on experience with demonstrations by prestigious application providers and experienced practitioners. Selected platforms closely parallel the broader conference themes and streams and are tailored to the needs of all stakeholder groups. Some of the areas covered by the ICT platforms include provision of better information to banks, mobile finance institutions and other financial institutions to aid granting of credit; supporting systems for mobile finance institutions to reduce their operational costs; digital applications facilitating effective linkages among farmers, businesses and banks for easy access to finance; systems mitigating risk for value chain actors; and secured loan repayment systems integrated with mobile weighing scales. Others include platforms that help lenders to electronically pool and pull borrower information using centralised databases; disseminate actionable, just-in-time information for evidence-based decisions for financing operations; enable saving and credit associations to handle savings and make loans to smallholder farmers; enable prospective farmers seeking financing to securely register with financiers; eVoucher systems being delivered via SMS or scratchcards; and e-Registry platforms that allow access to credit profiles of farmers and processors.

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“ A unique opportunity to gain a broader perspective of finance ICTs‌ and to identify viable areas for investment.

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Plug and Play Day Monday, 14 July

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Digital platforms for agri-value chain finance Agrilife Platform

aWhere Platform

Presenter: Charles Kiinde Mutuku, Agrilife Sales and Business Development Leader, Mobipay Kenya Limited http://www.agrilife.co.ke/

Presenter: Dave Lundberg, Chief Operating Officer, aWhere Inc. www.awhere.com

Owned and developed by Mobipay Kenya Limited, Agrilife is 3 years old. It is a cloud-based technology platform designed to use mobile phone and web platforms to enable groups of smallholder farmers to access financial services, markets and other services that are relevant to them. Agrilife enables players in the agricultural sector – including banks, micro-finance institutions, insurance companies, cooperatives, investors, and agricultural input providers – to have access to data about farmers’ financial and physical supply chain.

This enables farmers’ credentials to be established, minimises risk and gives the farmer easier access to affordable credit. Farmers are able to use the technology to make requests from their mobile phones/web platforms, and via Agrilife the requests are authorised and service providers are able to react to the request. Mobipay, on signing up service providers, agrees on a commission, which is transaction based, enabling Agrilife to be sustainable. So far, Agrilife has turned over US$18 million and Agrilife is present in Kenya, Uganda and Zimbabwe.

Agrocentral

aWhere’s globally-accessible platform transforms complex data from multiple sources into actionable, local insight through advanced data management, location intelligence, and mobile integration. The platform provides innovative tools, weather and climate content, and data techniques for evidence-based planning, locally relevant recommendations, and real-time, farm-level recommendations – all crucial for sustainable, climate-smart agriculture. aWhere has developed a cloud-based system capable of absorbing the breadth of data needed for climate-smart analysis and disseminating it as actionable, just-in-time information for evidence-based decisions across policy, investments, financing, and local operations. The platform captures surveys and feedback from farmers and value chain participants in real-time, creating investment indices based on data from multiple sources including emerging daily and seasonal weather parameters. The aWhere platform also has an extensive modeling and distribution engine for deriving and delivering farm-level recommendations and alerts – smart content – at precisely the right time to the right farmer through its network of SMS messaging partners.

This network enables ‘dialog’ with the farmer to share pertinent data while simultaneously receiving validation from farmers, suppliers, and markets, providing constant incremental improvement of the system.

Presenter: Jermaine Henry, Chef Executive Operator/ Co-Founder, Project Agro - www.agrocentral.co

Credit Information Sharing (CIS) system Presenter: Jared Getenga, Interim Chief Executive Officer, Association of Kenya Credit Providers (AKCP) www.ciskenya.co.ke

AgroCentral is Jamaica's first digital agricultural clearing house which utilises Web to SMS and SMS to Web technology to connect small farmers and businesses. Through AgroCentral, businesses have the ability to source large amounts of crops directly from farmers and farmers will be able to sell their available produce directly to businesses. AgroCentral facilitates effective linkages among farmers and businesses and operates by using a database that holds complete profiles, on both farmers and businesses. Farmer profiles include farm location, crops grown, supply capability and cell phone contacts.

For businesses, profiles include business location, product requirements and ease of transaction. This information along with the two way SMS portal allows for efficient communication of market information and exchange of goods.

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CIS is a mechanism through which various lenders electronically pool and pull borrower information using centralised (credit reference bureau) databases, with the aim of addressing information asymmetry between borrowers and lenders. Left unchecked, information asymmetry often results in adverse selection, unsuitable loan products/terms, and exclusion of certain categories of borrowers from the credit market. Agricultural financing is severely affected by lender insistence on physical collateral as a primary consideration in credit decisioning and credit risk mitigation. CIS will enable farmers to build a credit history for negotiating better credit terms such

Plug and Play Day Monday, 14 July

as reduced demand for tangible collateral, lower interest rates, and more flexible installment plans. CIS helps improve discipline in farmers borrowing and loan repayment culture that will enrich their credit scores. CIS also demands proper borrower identification and higher standards of record keeping that will feed into the borrower loan profiles. With CIS leading to an overall reduction in default rates in the broader credit market, the resulting improved liquidity will improve the supply of loanable funds available to finance agricultural needs of farmers in various stages of the value chain.

Increased access to financing, improved agricultural production and an orderly, efficient and stable credit market will stimulate economic development.

Creditinfo’s Credit Bureau Solution Presenter: Emma Camilleri, Head of Business Development (East Africa), Creditinfo Group www.creditinfo.com www.creditinformation.com - www.creditinfosolutions.com

Finance is often a barrier to growth for many businesses. A Credit Bureau provides better information to banks, micro-finance institutions (MFIs) and other financial institutions in order to support the granting of credit. Creditinfo’s Credit Bureau Solution is a complex system created for the exchange of information about customers' payment behaviour between financial and non-financial institutions. This solution is a very important tool for the financial position evaluation of both potential and existing customers of credit providers, insurance companies, mobile operators and other institutions. The underlying shared database contains both historic and current information about payment behaviour of individuals, entrepreneurs and companies. The information can be extracted in a form of a simple or complex report, based on mutual exchange of information. The solution is not just about traditional credit data, all information (alternative data) gathered can support and improve lending decisions. Creditinfo works according to the highest quality and security standards required by the banking sector, and meets the strict criteria valid for the global register operators. We also believe financial education is critical to improving access to finance, showing the importance of financial responsibility when consumers take on additional credit or quasi credit.

e-Krishok: Enterprise Development Program Presenter: Shahid Akbar, Chief Executive Operator, Bangladesh Institute of ICT in Development (BIID) www.sme.com.bd

Micro, small and medium enterprises (MSME) are primarily made up of young entrepreneurs, agro-businesses and farmers need financing for expansion and start up. Financial institutes follow certain guidelines to offer financial services but there is a clear gap between the understanding and capacity of MSMEs regarding access to finance, and an understanding of financial institute requirements.

The e-Krishok helps to fill this gap by facilitating technical support to build capacity through its Financial Literacy Program – a training service incorporating mentorship. In addition, the online platform enables MSMEs spread all over the country to use the service with maximum convenience. The BIID team offers a complete solution to MSMEs, from framing the idea to business plan development, and linking with financial institutes. Financial institutes are also now asking BIID to conduct training for their existing and potential clients. BIID is now partnering with Dhaka Chamber of Commerce and Industries, Prothom Alo Jobs, Rotary District 3281 and VSO Bangladesh.

Ensibuuko Presenter: Gerald Otim, Cofounder and Director of Business Development, Ensibuuko - http://ensibuuko.com/

Ensibuuko is a mobile and web application that integrates SMS and mobile money services to enable saving and credit associations (and other financing organisations) to handle savings and make loans to smallholder farmers. Smallholder farmers (who make up more or less 80% of Uganda's population), are either un-banked or underfinanced. Their productivity is stifled. Lack of financial reputation, high collateral and interest requirements have made it almost impossible for micro-finance institutions to address the challenge. Savings and credit associations, the only other organisations farmers look to for finance, are struggling with fraud and loss of public confidence. The Ensibuuko system allows farmers to register and apply for loans using SMS, and save, receive and repay loans using mobile money.

The result is simpler, safer, allows more control over own savings and credit for farmers, and it lowers the costs and gives greater transparency for savings and credit groups.

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Plug and Play Day Monday, 14 July

FarmDrive

Farmforce

Presenter: Rita Kimani, Software Engineer, FarmDrive Limited www.farmdrive.co.ke

Presenter: Faith Kamenchu, Farmforce Project Manager, Syngenta Foundation for Sustainable Agriculture www.farmforce.com

Smallholder farmers in Kenya lack access to finance. They are limited in their capacity to acquire and use modern farming techniques, hence cannot progress. Agribusiness is highly profitable.

More people are becoming interested in farming. They have disposable income that they want to invest, but they do not want to farm. FarmDrive seeks to connect smallholder farmers to such investors. A farmer keeps records of their productivity, expenses and revenue for the farming activity. This is analysed to reveal performance patterns and build a credit profile for the farmer. Investors have access to credit profiles of farmers who have applied for investments and can connect with them.

Farmer Management System (FMS) Presenter: Pierre le Grange, Manager, Vest Farm www.finico.za.com/finsp

FMS was developed as a management instrument to aggregate and manage various individual activities performed by stakeholders in the farming value chain. This in turn aggregates the various supply and demand activities within the value chain. The FMS is a flexible management platform that can mitigate risk especially if structured in a way that relates to the manner in which the farmers are organised, i.e. farmers’ organisations. Within farmers’ organisations, FMS is a tool through which the credit provided to the farmer is controlled and managed. In doing this, the farmer is given access to accredited input suppliers and the benefit of better prices due to economies of scale. FMS serves as an electronic wallet for the producer linked to specific suppliers within the defined ecosystem.

This electronic wallet has various accounts which enable production and trade transactions to be captured in the detail required by the stakeholders within the value chain. The combination of the electronic platform with the management services creates the FMS – ‘the solution’ which is provided by Vest Farm.

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Farmforce is a web and mobile platform built for use by large-scale contract farming schemes composed of smallholder farmers. The system allows these schemes to be managed with real time digital data. The system allows company agronomists and production managers to control which inputs growers apply to their fields, ensuring that that approved chemicals are used and that the correct maximum dose, pre-harvest intervals, and maximum number of applications per season are observed. The system provides support for data collection for international safety and sustainability standards, such as Global GAP. Farmforce has a loan management module which supports cash and input loans calculated on the size of farmers fields. The Farmforce mobile application has a secure harvest purchasing module (including loan repayments) which is integrated with mobile weighing scales and a bluetooth printer for use at collection centres to improve transparency. The system downloads data online or offline, enabling technical assistants to capture data in very remote areas. The system also provides detailed weekly production forecasts. Farmforce supports low end android mobile phones like the Samsung Galaxy Pocket which are cheap (US$110), portable and easy to use.

Musoni System Presenter: Cameron Goldie-Scot, Chief Executive Operator, Musoni Services www.musonisystem.com

The Musoni System is a cloud-based management information system (MIS), aimed at micro-finance institutions and savings and credit cooperatives looking to use technology to improve efficiency and reduce their operating costs. Aside from the core MIS functionality, the system integrates with mobile money transfer services (enabling microfinance clients to receive and repay their loans and savings through their mobile phones); sends automated SMS reminders to clients; and enables loan officers to carry out client registration and loan applications in the field using the Musoni app.

All these features make the system perfectly suited to organisations working in rural areas.

Plug and Play Day Monday, 14 July

Tangaza Pesa

UWINCorp – Unleashing the Wealth of Nations

Presenter: Gichane Muraguri, Director, Mobile Pay Limitied www.tangazapesa.com

Presenter: Julius O. Akinyemi, Entrepreneur-In-Residence, Massachusetts Institute of Technology/The Media Laboratory http://wealthofnations.media.mit.edu

Tangaza Pesa is the brand name for a mobile virtual network operator business, licensed by the Communication Commission of Kenya and the Central Bank of Kenya to Mobile Pay Limited (a fully owned Kenyan company). Tangaza Pesa offers mobile money transfers, voice calls, and access to the internet and data in Kenya across multiple channels. One of Tangaza Pesa's market solutions is the Value Chain Automation Service. Specific to agri-value chain financing services, the platform enables prospective farmers seeking financing to securely register with the financiers, apply for loans and credit, receive loans, and make repayments from the comfort of their mobile phone (across all networks). The financiers are able to automate the loan application and approvals process, disburse funds, and monitor loans performance through customised reports and communication. On value addition through marketing, the platform allows farmers to register and ‘post’ their produce onto the virtual market place for buyers to see. It also enables buyers to register and order, aggregate (at collection centres which ensure quality control) and make payments.

UMarket disbursement portal Presenter: Wisdom Alorwuse, Project Coordinator, Millicom Ghana Limited - www.mobile-money-gateway.com

UWINCorp aims to meaningfully and sustainably bridge the digital divide by helping Africans to register, quantify and qualify their personal assets. Developing a national digital asset registry – encompassing such items as land, crops, herds, resource rights, equipment, and even their personal and professional reputations – provides an individual with a Reputational Index (akin to a credit profile in the developed world with local nuances). With the Index, individuals will gain access to affordable capital and insured microloans so their assets can be put to work for them. Additionally, they can take advantage of the mobile commodities and services exchange (a mobile virtual marketplace) using their mobile phones to connect them into the modern global economy. With their assets already registered, there is full transparency of financial transactions and better risk management and a full compliance with the Know your Customer (KYC) regulations. While all of sub-Sahara Africa (potentially all developing markets) may eventually be targeted, the programme is being piloted in Senegal and South Africa, and Botswana is in the queue as they already have commodity collaborators as consolidators on the platform.

Zoona eVouchers UMarket disbursement is a portal system that addresses the bulk payment needs of organisations via mobile phones. The system targets farmers, remittance firms, teachers, manufacturers and other businesses. Registered Tigo Cash users and all other network users are able to receive money through this platform. Money sent to them is redeemable from accredited Tigo cash agents. They are also able to use their electronic money to pay for peer to peer transactions and airtime purchases.

Umati Capital Presenter: Munyutu Waigi, Co-founder, Umati Capital www.umaticapital.com

The Umati Capital platform is a suite of integrated mobile and web applications which are able to track supply information from source to point of processing. This information is then utilised to provide credit to various entities within the supply chain.

Presenter: Chrissy Martin, Global Partnerships Manager, Zoona http://illovezoona.com http://demo.m.ilovezoona.com/

Zoona is a social enterprise that helps micro and small enterprises grow by enabling Easy Quick Safe payments and financing in emerging markets. Zoona's eVoucher platform provides organisations and government agencies with a method to send Easy Quick Safe bulk payments for specific purposes, including fertiliser and seed subsidies, short-term savings for farmers to manage seasonal income, and in-kind donations such as food or other agricultural inputs. eVouchers can be delivered via SMS or scratchcards, and are managed through Zoona's online administration site. The service is currently used by partners in Malawi, Mozambique, Zambia and Zimbabwe.

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Plug and Play Day Monday, 14 July

Discussions and conclusions

Session

Time Room Session

Time Room Description

[S33] What lessons on ICT introduction have been learnt by Kenyan banks?

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Titus Karanja, Director, Co-operative Banking Division, Kenya

Speakers

Reuben Mwaura, ICT Manager, Vision Fund International, Kenya David Ruchiu, Chief Executive Officer, Farm Concern International, Kenya

17:15-18:15 Ndovu

Description

ICTs are creating new channels to reach the conventional ‘unreachable’ with finance. Within the agricultural sector little has been seen beyond mobile payments. While the opportunity is huge and varied, it is up to the stakeholders to explore which path to take. Can last-mile technologies such as ATMs play any significant role in digital finance?

What about mobile phones, radio frequency identification, smart cards, biometric identification, and near field communication technologies? Which of these technologies work best for which stakeholder group (farmers, traders, transporters, processors, researchers, microfinance institutions, banks, regulators)? What about systems for insurance against natural disasters (risk management) and monitoring the performance of field agents? The session will try to identify areas for future ICT investment to support agri-value chain stakeholders to access finance for their activities.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Prof. Henry Thairu, Chairman, Commission for University Education (CUE), Kenya

Speakers

Julius O. Akinyemi, Entrepreneur-in-Residence, MIT Media Lab, USA Chrissy Martin, Global Partnership Manager/ E-Vouchers, Zoona, USA

17:15-18:15 Chui Kenya has been playing a global leadership role in the area of mobile money since the telecommunication revolution. The country’s success with digital payment, especially through the well acclaimed M-Pesa, should be a source of national pride and a huge opportunity for ACP countries to emulate.

While creating the enabling environments for new innovations is key for every economy, it may be more important to ensure their uptake for development. What is different in Kenya’s case? Could it be a factor of Central Bank regulation or the technology itself? Is it more about the Mobile Network Operators or about management of the innovation? This short session will deliberate on the lessons learnt, focusing on the positives for stakeholders – regulators, innovators, users – from other countries to learn from.

[S34] ICTs – where do the biggest opportunities for finance lie?

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Plug and Play Day Monday, 14 July

Session

[S35] How can one strategically integrate new financing technologies into a bank’s value propositions?

Session Organiser Chairperson

Time Room Description

17:15-18:15 Kifaru According to a 2011 report by Accenture, Enhancing the Banking Customer Value Proposition Through Technology-led Innovation, customers ranked high internet and mobile technologies. The use of internet portals, brokerage portals, peerto-peer platforms, social media, information and notification services, mobile money transfers, payments with mobile devices, and mobile brokerage platforms are building confidence with customer relations. While this applies generally to all sectors, this session aims at deliberating on the specific benefits that new ICTs can bring to agri-value chain stakeholders. Participants will focus on strategic approaches to integrating new financing technologies into bank’s value propositions.

Speakers

Technical Centre for Agricultural and Rural Cooperation (CTA) Please check http://fin4ag.org/en/agenda.html Md. Shahid Uddin Akbar, Chief Executive Officer, Bangladesh Institute of ICT in Development (BIID) Cameron Goldie-Scot, Co-Founder and Chief Executive Officer, Musoni Services, The Netherlands

Day 1 Tuesday, 15 July

Opening Ceremony Time Room

8:45-10:30 Ndovu

Session

Master of Ceremonies

Prof. Kinandu Muragu, Executive Director, Kenya School of Monetary Studies

Welcome Statements

Dr. Evans Kidero, Governor, Nairobi County Prof. Njuguna Ndung’u, Governor, Central Bank of Kenya Millison Narh, Chairman of the African Rural and Agricultural Credit Association (AFRACA) and Deputy Governor, Bank of Ghana Luca Alinovi, Representative, Food and Agriculture Organization of the United Nations (FAO) Kenya Michael Hailu, Director, CTA HE Ambassador Lodewijk Briet, Head of Delegation, European Union HE Tumusiime Rhoda Peace, Commissioner for Rural Economy and Agriculture, African Union Commission (AUC) HE Felix Koskei, Minister of Agriculture, Livestock and Fisheries, Kenya

Keynote Speech

HE Akinwumi Ayodeji Adesina, Minister of Agriculture and Rural Development, Nigeria

Opening Speech

HE Uhuru Kenyatta, President of Kenya

€

20

Sessions

Time Room

[S1] Best practices in agri-value chain finance 11:00-12:30 Ndovu

Description

For many bankers, agricultural finance has still not shaken off its negative connotations – risky, labour-intensive, prone to government intervention. Yet many banks have been successfully experimenting with a new approach towards financing the agricultural sector: value chain finance, in which risks are mitigated and transaction costs reduced by linking parts of the value chain together, from farm to fork. In this panel, several banks will showcase their success stories in agri-value chain finance, and share the lessons they have learnt in structuring and then managing their transactions. They will demonstrate that ‘short-distance chains’, serving local markets rather than international ones, can be successfully captured by banks; that there is scope for bringing together banks, development partners (including NGOs) and governments to build stronger, bankable chains; and how banks can harness new information and communication technologies to strengthen financing structures.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Jonathan Bell, Editor in Chief, Trade and Export Finance, England

Speakers

Joseph Tilado Minoungou, Chargé de Missions, Coris Bank International, Burkina Faso Octavian Mghanga Rewona, Team Leader, Taita Agriculture and Livestock Enterprises, Kenya Gareth Coleman, Head of Trade & Supply Chain, ANZ, Papua New Guinea

Day 1 Tuesday, 15 July

Session

Time Room Description

[S40] Leveraging ICTs for agricultural finance: learning from the Plug and Play Day 11:00-12:30 Chui The concept of the ‘Plug and Play Day’ emerged during the first steering committee meeting of ICT4Ag conference. The goal was to bring to the forefront the new ICT innovations for agriculture for our partners in ACP countries, as well as to provide young innovators with the opportunity to market their innovations. After the success of a Plug and Play Day in Kigali at the ICT4Ag conference, the Fin4Ag conference is poised to repeat the event and improve upon it for all stakeholders.

The goal of this session is to gather good practices of leveraging ICTs for agri-value chain finance. The session will highlight progress so far with ICTs and finance, the emerging innovations and their potentials, the missing gaps in terms of ICTs for finance, and some of the opportunities ahead for stakeholders within the sector.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Moderator

Pete Cranston, Information, Knowledge, ICT and Social Media Consultant, Euforic Services, UK

Speakers

Benjamin K Addom, ICT4D Programme Coordinator, CTA, The Netherlands Jermaine Henry, Chief Executive Operator/ Co-Founder, Project Agro, Nanook Enterprises, Kingston, Jamaica Jared Getenga, Project Manager, Kenya Credit Information Sharing Initiative, Association of Kenya Credit Providers, Kenya Elisabetta Demartis, Research Fellow on ICTs for Agriculture, Presso University of Turin, Italy

Session

Time Room

[S53] Supporting young entrepreneurs to engage in ICT4Ag business: outcomes of the 2013 ICT4Ag hackathon 11:00-12:30 Kifaru

Description

Supporting ICT innovation and entrepreneurship in agriculture by young people was the major aim of the regional ‘hackathon’ that was organised by CTA during the ICT4Ag international conference held in Kigali in November 2013. A hackathon is an event during which computer programmers (and development stakeholders when required) collaborate for a short period in developing an ICT application or platform to solve a specific issue.

The activity included capacity building activities on business models and ICT development, incubation, and connection with potential investors after the conference. The winners and some of the best participants (from Ethiopia, Tanzania, Rwanda and Uganda) took part in a several months incubation programme managed by the following ICT hubs: Outbox, Buni Hub, Klab and IceAddis. The applications developed included platforms to facilitate access to credit, to test soil fertility and map agricultural land. Apart from Eastern African ICT hubs, institutions such as the Ministries in charge of agriculture and youth and ICT in Rwanda, the Alliance for a Green Revolution in Africa, and Microsoft Africa collaborated on the event. The results of this ‘AgriHack Championship’ will be shared with participants of the session.

Discussions will focus on the products developed by the young entrepreneurs, how to strengthen collaboration between ICT hubs and agricultural institutions, business models of ICT4Ag entrepreneurship and follow-up activities.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Ken Lohento, ICT4AD Programme Coordinator, CTA, The Netherlands

Speakers

Representative, Ministry of Agriculture and Animal Resources of Agriculture, Rwanda Representative, Ministry of Youth and ICT, Rwanda John Kieti, Lead, m:Lab East, East Africa (ICT Hub) Opio Obwangamoi David, Founder and CEO, Ensibuuko, Winner of the ICT4Ag Hackathon, Uganda Peris Bosire, Cofounder Farm Drive, Tanzania, regional finalist of the ICT4Ag Hackathon 21

Day 1 Tuesday, 15 July

Session

Time Room

[S24] Developing innovative agri-lending products and climate insurance to build climate-resilient agriculture 11:00-12:30 Twiga

Description

Climate change and variability increase the risks of agricultural production. This could impose additional costs to agricultural credit as conventional finance becomes unwilling to lend to farmers due to the perceived additional risks. This session will discuss innovative agricultural finance products to build climate-resilient agriculture and fill the vacuum created due to the unwillingness of conventional finance to accept climate-induced agricultural risks, which they considered too risky.

It will focus on examples where agri-lending and climate insurance products have been implemented to minimise risks for all players, type of investments required to produce high quality weather data, and identify different kinds of public-private partnership arrangements that are required to implement specific solutions identified.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Prof. Jimmy Adegoke, Director, Center for Applied Environmental Research (CAER), University of Missouri, USA

Speakers

Dr. Oluyede (Olu) Ajayi, Senior Programme Coordinator, CTA, The Netherlands Bernard Pacher, Chief Executive Officer, PPP ADCON GmbH, Belgium Shadreck Mapfumo, Senior Financial Specialist, Global Index Insurance Facility Programme Manager, International Finance Corporation (IFC), South Africa Ernest Chitechi, Partnership and Outreach Manager, Climate Innovation Center, Kenya

22

€ Session Time Room

[S11] Financing intra-African food trade 14:00-15:30 Ndovu

Description

Despite being a major food producer, sub-Saharan Africa is dependent on food imports. The region imported US$234 billion of food from 2002 to 2012, mostly cereals, fish, sugar and dairy products, despite the potential to supply most of this from regional production. Africa’s cities will continue growing fast, and if current trends with respect to dependency on food imports for urban consumption continue, Africa’s food import expenditures may triple over the next two decades, crippling its capacity to invest in infrastructure and manufacturing. Governments are trying to change the trend, through policy changes and investments in trade infrastructure.

This can lead to a rapid increase in intra-regional food trade flows, creating vast new opportunities for banks that build a capacity to finance such flows. If efficient finance for such trade is not in place, the competitive position of African suppliers will be hurt; imagine for example a maize mill in Zambia, which has a choice between buying US maize on a 3 month credit, or Ugandan maize which needs to be paid in cash. This panel will debate the issues involved, the opportunities that arise, and the roles that governments and banks can play to enable efficiently-financed cross-border food trade.

Session Organiser

African Rural and Agricultural Credit Association (AFRACA)

Chairperson Speakers

African Development Bank (AfDB), Tunisia David Kalyango, Executive Director Finance, Bank of Uganda Lamon Rutten, Manager Policies, Markets & ICT, CTA, The Netherlands Gerald Makau Masila, Executive Director, Eastern Africa Grain Council (EAGC), Kenya George J. Magai, Director Trade and Markets, Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA), Zambia

Day 1 Tuesday, 15 July

Session Time Room Description

[S30] Agriculture and price stability 14:00-15:30 Simba Food prices form an important and volatile component of the consumer price index in most African countries. Concerns about price volatility have a huge effect on business decisions and investments and have implications for management of monetary policy. Modernising agriculture is critical for risk management and economic growth.

Agricultural growth is a social, economic and political imperative. Given the rapid expansion of urban populations, growing dependence on imported food absorbs foreign exchange earnings and also exposes governments to the risks that come with imported food price instability.

There is a surging demand for financial products that aid in management of food price risk and are not prohibitively expensive. The International Finance Corporation, for example, makes available a price risk management product that allows banks to take on credit exposure of businesses and farmers. This allows producers to buy a ‘price hedge’ to ensure the future value of their product covers the costs of their loans. Such products also encourage lending to the agricultural sector for investment, as the borrower has greater certainty of a fixed return. Scaling up of these initiatives requires development of prudential guidelines, infrastructure support, a robust capital market and a financial education programme.

Session Organiser Chairperson

Speakers

Session

Time Room Description

Session Organiser

[S5] Testing innovations in livestock and dairy value chain finance: insights from Eastern and Southern Africa 14:00-15:30 Chui This panel discussion will feature three examples of projects tackling the sustainable provision of financial products and services to small-andmedium sized stakeholders in livestock and dairy value chains of Eastern and Southern Africa. All development models presented have smallholder producers in mind as final beneficiaries but the partners involved in providing the finance and insurance products and services are private-sector stakeholders within the meat or dairy value chains. Therefore, this 45-minute discussion will not only focus on weighing the pros and cons of the scientific tools used to identify the major constraints to elaborating a sustainable financial innovation in the livestock sector. We will also discuss the relevant business models needed to allow theoretical models for finance and insurance to work in the real-life livestock and dairy value chains of developing countries. Another 40 minutes will be dedicated to discussions with session participants to debate on further lessons learned from other geographical regions on finance and insurance models for livestock and dairy value chains so as to achieve consensus on the approaches most likely to work out in ACP countries.

International Livestock Research Institute (ILRI)

Central Bank of Kenya (CBK)

Prof. Emmanuel Tumusiime Metebile, Governor, Bank of Uganda Ato Teklewold Atnafu, Governor, National Bank of Ethiopia Basiru A.O. Njai, First Deputy Governor, Central Bank of The Gambia Dr. Michael M. Gondwe, Governor, Bank of Zambia Deogratias Mutombo Mwana Nyembo, Governor, Banque Centrale du Congo

Chairperson

Jo Cadilhon, Senior Agro-economist, Policy, Trade and Value Chains Programme, ILRI, Kenya

Speakers

Bryn Davies, Market and Capacity Development Manager, ILRI, Kenya Signe Nelgen, ILRI, Nairobi Agro-economist, Policy, Trade and Value Chains Programme, ILRI, Kenya Edgard Twine, Post-Doctoral Fellow – Value Chain Economist, ILRI, Tanzania Representative of Namibian beef export finance system

23

Day 1 Tuesday, 15 July

Session

Time Room

€

[S48] The West African farmers’ challenge: how can the private sector intermediate between farmers and banks?

14:00-17:30 Kifaru

Description

The failure of agricultural development banks established in the 1970s has resulted in several agricultural financing trajectories. However, in the 1990s, new initiatives, such as microfinace in rural areas and the establishment of credit unions by farmers’ organisations, were developed. Microfinance generated a lot of hope, but it has been noted that it is shifting from rural areas to urban areas, which are more profitable and less risky. The credit unions set up by farmer’s organisations represented, in several regions, the only opportunity of access to financing with, in some cases, their structural weaknesses. At the current time, central banks, in particular those of Nigeria, Ghana and Liberia, have put in place credit facilities for agriculture and many initiatives, at both local and regional levels, have been implemented to finance the value chain. This session addresses innovative value chain financing solutions, with an emphasis on farmer initiatives and current experiences in the West African region.

Session Organisers

ROPPA, CTA

Chairperson – Part One

Djibo Bagna, President, ROPPA, Burkina Faso

Moderator – Part One

Nedjema Bennegouch, Head Partnerships, West Africa, SOS-Faim, Luxembourg

Speakers – Part One

Marius Dia, Coordinator, Technical Assistance Unit, Cadre National de Coordination des Ruraux (CNCR), Senegal Ibrahima Bah, National Coordinator, Coordination National des Organisations Paysannes(CNOP) de Guinée Falery Boly, President, Syndicat des Exploitants Agricoles de l'Office du Niger (SEXAGON), Mali

Chairperson – Part Two

Ousseini Salifou, Director, Regional Agency for Food and Nutrition, CEDEAO

Speakers – Part Two

Elhadj Abdoulaye Diack, Executive Director, African Agro-Export Association (AAFEX), Senegal Pathé Gueye, Director, Banque d'Investissement et de Développement de la CEDEAO (BIDC), Togo

24

Session

Time Room

[S42] Managing price and weather risks to enable agricultural finance 14:00-15:30 Twiga

Description

Reducing weather and price risk is one of the most critical considerations in agricultural finance, and value chain finance also includes many financial and value chain related instruments which are specifically designed to better manage both systemic and individual risks. The value chain approach helps to reduce price risk through secured markets and sales and production risk through improved access to seeds, farming practices and technology, and agricultural development services. Agricultural weather risk products are growing in importance but, unless subsidised, their overall use is low and there is a reluctance of farmers to voluntarily pay for the insurance. However, others actors farther along the value chain may want to have such insurance and may require it or embed the insurance cost into operational costs. The rationale is clear: if a marketing company has binding sales contracts it is important to have secure procurement. If a crop fails not only will the crop not be available, but neither will the loan repayments for any advances that may have been given. Some experiences in the use of price and weather risks management tools will be discussed in this session.

Session Organisers

Food and Agriculture Organization of the United Nations (FAO)

Chairperson

Roy Parizat, Senior Economist, Agriculture and Environmental Services Department, World Bank, USA

Speakers

Arijit Dutta, Chief Operating Officer, BASIX, India Prof. Mario J. Miranda, Professor of Development Economics and Quantitative Methods, Ohio State University, USA Dr. Apurba Shee, Agricultural Economist, International Livestock Research Institute (ILRI), Kenya

Day 1 Tuesday, 15 July

Session

Time Room

[S9] Agricultural lending for micro-finance institutions: the Kenyan experience 14:00-15:30 Kiboko

Session Time Room Description

Description

Session Organiser

Some micro-finance institutions (MFI) have developed products and services to serve smallholder farmers. However, expansion by sustainable microfinance providers into financing for agriculture is complicated by many factors. First, agriculture involves high risks and often low returns, weak value chains, poor infrastructure, insufficient client information, poorly functioning property registries and markets, and policy distortions. Second, agriculture requires different lending instruments from those used by MFIs in urban areas. MFIs need to adapt existing financial products and delivery mechanisms to match disbursement and repayment to agricultural production cycles, to offer flexibility in collateral requirements, to provide flexible delivery mechanisms, including through using ICTs, and to develop risk management techniques. If this is done MFIs can also offer credit for non-farm, household and emergency needs as well as savings and transfer payment services. MFIs following good practices can also bring a commitment to efficiency, transparency in reporting, high portfolio quality and sustainability.

Panellists from MFIs will discuss how they have developed their agricultural lending businesses.

Can agricultural lending be profitable? What solutions have worked and which haven’t? How did the MFIs redesign their agricultural lending business? How relevant have ICTs been in solving the constraints of working in rural areas? This session discusses lessons from Kenya. S13 will bring in global experiences.

Association of Micro Finance Institutions (AMFI)

Chairperson

Aleke Dondo, Microfinance Expert, K-Rep Development Agency (KDA), Kenya

Speakers

Anne Gathuku, General Manager, Greenland Fedha Ltd, Kenya John Mwara Kibochi, Managing Director, Faulu Microfinance Bank Ltd, Kenya Benjamin Kimosop, Juhudi Kilimo, Kenya John Masha, General Manager, Micro Enterprises Support Programme Trust (MESPT), Kenya Benjamin F. Nkungi, Chief Executive Officer, Association of Microfinance Institutions, Kenya

Session Organiser

[S31] Central bank interventions in agriculture 16:00-17:30 Ndovu Central banks in the US and Europe in the late 19th century created dedicated discount windows for warehouse receipt finance. In 1848, the Bank of France developed ‘bonded warehouses’, which helped inject liquidity into the monetary system.

Later, in Latin America and the Philippines, central banks also offered discount facilities for warehouse receipt loans. More recently, in Brazil, the government and financial institutions have developed a mechanism for farmers to raise short-term finance by issuing “I Owe You” notes. In Africa, some central banks have aimed to expand access to agricultural finance. In Nigeria, the IncentiveBased Risk Management System for Agricultural Lending is primarily driven by the Central Bank of Nigeria. This seeks to: (i) de-risk agriculture so that banks can lend with confidence, and (ii) encourage banks to lend to farmers, by offering incentives and technical assistance. Other efforts in Africa include establishment of credit reference bureaus and collateral registries. However, central banks mostly focus on their role in securing monetary stability. In this context, the session will discuss where the boundary for central bank intervention lies? What can central banks do to help boost agricultural growth without compromising their core monetary policy role?

Central Bank of Kenya

Chairperson

Millison Narh, Chairman AFRACA and Deputy Governor, Bank of Ghana

Speakers

Rwangombwa John, Governor, National Bank of Rwanda Benno Ndulu, Governor, Central Bank of Tanzania Sarah Alade, Acting Governor, Central Bank of Nigeria Alejandro S Alvarez de la Campa, Global Product Leader, Secured Transactions and Collateral Registries, IFC, USA

25

Day 1 Tuesday, 15 July

Session

Time Room

[S45] Economic landscape of agricultural digital finance 16:00-17:30 Simba

Description

Originally referred to as mobile money this extremely young and fast moving industry is most recently being referred to as digital finance. Mobile money started as person-to-person payments between cell phones and rapidly served the payments needs of large entities or governments. As more and more money started circulating outside the banking system, banks began to see a competitive threat and no longer cared to sit on the sideline. The terms mobile banking (bank products on the phone) and branchless banking (non-traditional banking agents) have rapidly emerged by way of joint ventures between multi-national organisations and banks. These promising changes have not been lost on central bank regulators worldwide who have, for the most part, embraced the potential for financial inclusion and are promulgating regulatory lessons learned and best practices. Meanwhile, mobile finance – of whatever variation – can be easily integrated with digital technologies such as smart cards, scratch cards, point of sale devices, biometric identity capture, ATM’s and others. The panel will review this history, describe how digital finance can serve households and discuss the three approaches to agricultural digital finance (market research, strategic alliance, and horizontal integration into agri-value chain interventions).

Session Organisers

Technical Centre for Agricultural and Rural Cooperation (CTA)

Moderator

[TBA], GSMA

Session Time Room

26

Birgit Deibele, Mastercard; Carol K. Kakooza, Program Director, Agri Fin Mobile, Mercy Corps; Herman Louw, Finico Technologies (Pty) Ltd; Eddie Sam Kumakech, Assistant Registrar of Cooperative Societies, Ministry of Trade, Industry and Cooperatives, Kampala – Uganda,

16:00-17:30 Chui

Description

Using collateral management services (‘field warehousing’) to support commodity and small and medium enterprise trade finance has long been part of the arsenal of banks, including in Europe and the US. Collateral managers not only control commodities as collateral for loans, they also bring valuable commodity intelligence to financiers and can help structure loans. Where there was a lack of such services, banks have resorted to creating collateral management subsidiaries themselves. To this day, many of the largest collateral managers throughout Latin America and in Turkey are owned by banks. Africa is under-serviced in terms of collateral management. The very few international companies still active in the continent focus on international trade, while local collateral managers often don’t have the capital or systems to properly mitigate bank risks. So is there scope for a new pan-African collateral management company, perhaps one that brings together interested local or sub-regional companies under one umbrella, with upgraded capital and risk management tools; a company that could be set up by African banks keen on expanding their presence in the commodity sector? The session will discuss what the scope for such a company is, and will elicit the audience’s interest in supporting its establishment and development.

Session Organisers

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Speakers

[S23] Pan-African collateral management

Speakers

[TBD] Please check http://fin4ag.org/en/agenda.html Alex Clemence Gideon Kwayu, Director, CGS Collateral Control Company Limited, Tanzania Nicholas Budd, former partner, Denton Wilde Sapte, France Ayodeji Balogun, Business and Investment Officer, Africa Exchange Holdings Ltd, Nigeria

Day 1 Tuesday, 15 July

Session Time Room

[S43] Managing production and marketing risks to enable agricultural finance 16:00-17:30 Twiga

Session

Time Room

[S13] Case studies in micro-finance institution lending to agriculture 16:00-17:30 Kiboko

Description Risk management techniques and price volatility control could be used to offset some of the risk in agri-value chains. Experience has shown that there are many ways to reduce risk – information, market knowledge, chain knowledge and/or acquiring links throughout the chain. Reducing risk is one of the most critical considerations in finance. Forward markets and futures options are risk mitigating instruments used in agricultural marketing by producers, investors and traders.

Such mechanisms can allow farmers to issue a note, promising to deliver a given quantity and quality of product at a given future date and locale. In exchange the buyer pays, in advance, a given amount of money corresponding to the quantity of product specified to work as a protection against price drops as well as an instrument for accessing production finance, and in some cases it can also reduce risks of the buyers. Several innovative instruments like this will be described in this session, including physical tools for production and marketing risks.

Session Organiser

Food and Agriculture Organization of the United Nations (FAO)

Chairperson

Md Shahjahan Ali, General Manager, Central Accounts & Finance, Grameen Bank, Bangladesh

Speakers

Elies Fongers, Senior Project Manager, Rabobank, The Netherlands Moritz Waldstein Wartenberg, Transparency Innovations Manager, Technoserve, Ethiopia

Description

This session is a continuation of the debate of the session on agricultural lending for micro-finance institutions: the Kenyan experience (session S9).

Panellists from micro-finance institutions (MFI) will discuss how they have developed their agricultural lending businesses. Can agricultural lending be profitable? What solutions have worked and which haven’t? How did MFIs redesign their agricultural lending business? What are the innovations to which MFIs should be looking to scale up their agricultural lending business?

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

David T. Baguma, Executive Director, Association of Microfinance Institutions in Uganda (AMFIU)

Speakers

Emmanuel Akinyemi Akintola, Chief Executive Officer, Community Development Foundation (CDF), Nigeria Prof. Badr Eldin A. Ibrahim, President of Micro Finance Unit, Central Bank of Sudan Ann Marie Mwaka Sabano, Manager, Agricultural Credit, Centenary Bank, Uganda Erwin S. Embuscado, Assistant Manager, Alalay Sa Kaunlaran, Inc. (ASKI), The Philippines

27

Day 2 Wednesday, 16 July

Sessions Session

Time Room Description

[S4] Development and regulatory issues of capital market instruments for agriculture: what can we learn from Brazil and other countries?

Time Room

Banks are not the only external source of funding for the agricultural market. Investment funds and various capital market instruments can also play an important role. This panel will discuss experiences in developing capital market instruments for agriculture. What kind of instruments have we seen emerge in developing countries? What role did central banks and other government authorities play in stimulating the emergence of these instruments? Once introduced, were there any particular regulatory issues? The panel will take as a reference the experience of Brazil with ‘Rural Product Notes’: I-Owe-You notes issued by farmers that are collateralised by their future crop production or by their livestock. Against such notes, farmers can obtain credit, for example to buy inputs.

Brazil’s experience with these products has been very successful, but the success required certain conditions: farmers that were linked into value chains (i.e., market-oriented farmers); a supportive legal and regulatory framework which, among other things, provides for a well-functioning out-ofcourt settlement of commercial conflicts; the availability of insurance to cover, for example, against weather risk; and the existence of monitoring agencies and of electronic registries. To what extent can such conditions be replicated in Africa?

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Jonathan Bell, Editor in Chief, Trade and Export Finance, England

Speakers

Samuel Dzotefe, Principal Investment Officer, Agribusiness, International Finance Corporation (IFC), USA Lamon Rutten, Manager, Policies, Markets and ICT, CTA, The Netherlands Edwin Moyo, Executive Chairman, Rollex Pvt. Ltd., Zimbabwe Alexis F.K. Aning, Chief Executive Officer, CCH Finance House Ltd (a subsidiary of Commodity Clearing House Ltd)

[S41] Risk management tools for agricultural finance 08:45-10:30 Simba

Description

Access to finance by actors along the agri-value chain enhances the efficiency of operations and ensures the realisation of the actors’ objectives in a manner that is supportive of the sector’s growth. Limitation in access and utilisation of agricultural finance results in inefficient agri-value chains as actors utilise rudimentary approaches to doing business. Discussions from an international symposium on agriculture held in Kampala in 2013 indicated that commercial banks and micro-finance institutions have adequate agricultural finance products and services to meet the needs of entrepreneurs in agribusiness. However, lending to the agricultural sector has been slowed by the unaddressed risks associated with the sector. This was in conformity with findings from other commissioned research papers that were presented during the symposium that uptake of credit by actors along the agri-value chain has been constrained by a number of factors. Even when credit is accessible, there have also been constraints that have affected its utilisation. The challenge of risks affecting the sector cuts across value chains, actors, and gender.

Session Organiser

Kilimo Trust Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Prof. Nuhu Hatibu, Chief Executive Officer, Kilimo Trust, Uganda

Co-Chaiperson

Dr. Oluyede Ajayi, Senior Programme Coordinator ARD policy, CTA

Speakers

Amb. Phillip Idro, Chief Executive Officer, Upland Rice Millers Ltd, Uganda Dr. Birungi Korutaro, Ass. Director, Kilimo Trust, Uganda Esther Muiruri, General Manager of Agribusiness, Equity Bank, Kenya

Rapporteur

Henry M. Mwololo, Programme Officer, Knowledge Management, Kilimo Trust

08:45-10:30 Ndovu

Session Organiser

28

Session

Day 2 Wednesday, 16 July

Session

Time Room

[S46] Three agricultural digital finance platforms 08:45-10:30 Chui

Description

Recent research has revealed that there is a race among commodity buyers to have the fastest speed of payment to farmers. SmartMoney in Uganda is a mobile financial service provider working with large cotton and coffee buyers to transition their cash payments to mobile payments. The RiMFin pilot in Ghana, funded by VISA, transitioned the cash payments of the largest rice buyer to TigoCash payments. The largest cotton buyer in Zambia, NWK, has been steadfast in its pursuit of e-payments first with mobile payments, then with e-vouchers and most recently with prepaid bank cards. Finally, in Colombia the Better Than Cash Alliance will profile their case study of a smart card payments scheme for the coffee sector. Panel participants, who have blazed the trail for agricultural digital finance, will share their lessons learnt and best practices through the lens of market research into cash usage behaviour patterns of farmers, strategic alliance formation, and integration into their agriculture extension programming.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Moderator Speaker

Session

Time Room Description

Session Organiser

[S36] Women in agri-value chain finance: tips for success!

08:45-10:30 Kifaru Improving access to finance for women farmers, processors, entrepreneurs, product innovators, and business owners is pivotal to the structural transformation of African agriculture, strengthening of risk management at the household and community levels, and achieving targets for accelerated African agriculture growth and transformation goals for the next decade of the Comprehensive Africa Agriculture Development Programme. In this session, the ways in which financial institutions achieved success in integrating women in business development and improving their business performance, will be discussed.

What changes did the financial institutions make to attract women customers? How is ICT helpful in overcoming the ‘customer connection’ constraint to include rural, women farmers and processors in financial institutions’ business models? Are farmer organisations the secret? What financial products are most popular with women at different stages of the agri-value chain, and why? What are the implications for the financial valuation of financial institutions?

African Union Commission (AUC)

Dr. Lee Babcock, Consultant, USA Kwesi Korboe, Country Representative, Agribusiness Systems International (ASI), Ghana Michael Spencer, Founder and CEO, SmartMoney, USA Representative of NWK Agri-Services, Zambia Please check http://fin4ag.org/en/agenda.html

Chairperson

Dr. Joyce Cacho; Advisor/Consultant – Agribusiness and Gender; Department of Rural Economy and Agriculture (DREA), Africa Union Commission (AUC)

Speakers

Wzo Meaza Ashenafi, Chair Person, Enat Bank, Ethiopia Réki Moussa Hassane, Directrice Générale, ASUSU S.A., Systeme financier Decentralisé, Niger Antonio Souto, Managing Director, GAPI, and President, Board of Banco Terra, Mozambique HE. DrJoseph Sam Sesay, Minister of Agriculture, Forestry & Food Security, Sierra Leone

€ 29

Day 2 Wednesday, 16 July

Session

Time Room

[S49] The East African farmers’ challenge: establishing farmers’ agricultural banks at the country or regional level in Eastern Africa: prospects and practical steps ahead 8:45-12:30 Twiga

Session

Time Room Description

Description

Session Organiser

Repeatedly, the lack of access to credit due to the stringent borrowing requirements, coupled with the high cost of credit are highlighted as major obstacles to agricultural development in Eastern Africa.

Without affordable credit, small-scale farmers are unable to acquire sufficient resources to invest in their farming businesses. EAFF members are undertaking various activities to resolve this issue.

In Kenya for example the Co-operative Bank of Kenya is one of the largest banks in the region, and its main clientele is the cooperative sector in the country. UNFFE has already held discussions with the Ministry of Finance, the parliamentary committee on agriculture and finance, and the Bank of Uganda. Lastly, with support from CTA, EAFF commissioned a study in 2013 to explore agricultural financing models across the region. The study generated various ideas on possible viable models to be scaled out. Despite these initiatives, a comprehensive solution to the challenge of access to affordable credit still eludes the smallholder agricultural sector. During this session we will discuss and agree on concrete proposals for an agricultural bank and policy for agricultural financing.

EAFF, CTA

Chairperson

Cesarie Kantarama, 1st Vice President Eastern Africa Farmers Federation (EAFF), Rwanda

Speakers

Vea Kavira, Executive Director, Ligue des Organisations des Femmes Paysannes du Congo (LOFEPACO), Democratic Republic of Congo Wiligis Mbogoro, Executive Director, Tanzania Federation of Co-operatives (TFC), Tanzania Tadesse Meskela, General Manager, OCFCU and EAFF Vice President, Ethiopia Stephen Muchiri, Chief Executive Officer, EAFF, Kenya Joseph Nkandu, Executive Director, NUCAFE, Uganda Augustine Mwendya, Chief Executive Secretary, UNFFE, Uganda

Rapporteur

30

Stevenson Nzaramba, Trade and Agribusiness Officer, Eastern Africa Farmers Federation (EAFF), Kenya

Session Organiser

[S29] Central bank forum: agriculture’s significance for the financial inclusion and stability agenda 11:00-12:30 Ndovu Bringing people into the supervised financial system lowers risks, promotes stability, and improves integrity. The Governor of Bangladesh Bank attributed his country’s ability to cope with the global financial crisis to buoyant domestic demand, supported by financial inclusion initiatives in agriculture, small and medium enterprises and renewable energy. Some regulators have taken great strides to balance the stability and integrity of their financial system with the need to ensure financial services are inclusive. However, many financial institutions are lagging behind, as are the policies, rules and regulations under which they operate.

There have been significant innovations in some countries but these have been slow to spread across borders. In Kenya, ICTs make it possible to develop applications that support farming communities with dynamic links to finance. Small-scale versions of tools previously reserved for relatively large financings have been developed. In India, the ICT-empowered reintroduction of warehouse receipt and collateral management has led to new finance from banks who were previously wary of the sector. In the Philippines, new financing tools are enabling farmer groups to become owners of processing plants. Crowd funding is now emerging.

For countries where such initiatives have taken root, there is focus on policies that promote leveraging of the potential synergies between banks, micro-finance institutions, and mobile phone service providers.

Central Bank of Kenya

Chairperson

Prof. Benno Ndulu, Governor, Central Bank of Tanzania

Speakers

Dr. Zeti Akhtar Aziz, Bank Negara, Central Bank of Malaysia Ajith Nivard Cabraal, Central Bank of Sri Lanka Prof. Njuguna Ndung'u, Governor, Central Bank of Kenya Benny Popoitai, Bank of Papua New Guinea Sarah Alade, Acting Governor, Central Bank of Nigeria

Day 2 Wednesday, 16 July

Session

Time Room Description

Session Organiser

Chairperson

Speakers

[S17] Warehousing and collateral management systems to promote access to finance 11:00-12:30 Simba Warehouse receipt financing is a loan extended by a bank, a micro-finance institution or a supplier which is secured by collateral created on a crop stored in a warehouse operated by a third party or by a representative group of farmers collectively. The debt is represented by a specific instrument (a warehouse receipt or warrant). Although warehouse receipt financing has a good track record in a number of countries, it has not succeeded yet to mobilise financing commensurate with the needs of smallholder farmers in Africa.

In late 2013, AFD, CTA and IFAD jointly commissioned an in-depth study, covering nine African countries, to analyse what could be done to foster the emergence of public warehouse operators and accredited collateral managers, so that wider use can be made of financing based on physical asset collateralisation. The study comprises both a legal/regulatory and an institutional due diligence, aimed at identifying obstacles to the implementation of warehouse receipt financing. The study also makes recommendations for the efficient development of warehouse receipt financing and warehouse operators. In this session, the lead consultants to this study, completed in June 2014, will discuss its findings.

Agence Française de Développement (AFD) International Fund for Agricultural Development (IFAD) Technical Centre for Agricultural and Rural Cooperation (CTA) [TBD] Please check http://fin4ag.org/en/agenda.html Jonathan Coulter, Director, J Coulter Consulting Ltd., UK Geoffrey L. Wynne, Director, Sullivan & Worcester, UK Sam Fowler-Holmes, Associate, Sullivan & Worcester, UK Ibrahima Diakhoumpa, Agricultural Value Chain Account Manager, Banque Nationale pour le Développement Economique, Senegal

Session

Time Room

[S21] Building a successful agri-value chain financing 11:00-12:30 Chui

Description

Agri-value chain finance offers an opportunity to reduce costs and risk in financing, including outreach to smallholder farmers. For financial institutions, value chain finance creates the impetus to look beyond the direct recipient of finance to better understand the competitiveness and risks in the sector as a whole and to craft products that best fit the needs of the businesses in the value chain. At the same time, value chain finance can help chains become more inclusive, by making resources available for smallholders to integrate into higher value markets. Finance that is linked with value chains is not new; what is new is the way it is being applied more systematically to agriculture, using innovative or adapted approaches, tools and technologies. Lessons learned from around the world and examples of their application and innovation will be shared and discussed by presenters in this session, including recommendations for building efficient and successful financial linkages along the chain.

Session Organiser

Food and Agriculture Organization of the United Nations (FAO)

Chairperson

Wakil Adjibi, West Africa II, Chairperson, AFRACA, and Chief Executive Officer, Vital Finance, Benin

Speakers

Prasun Das, Project Manager, Asia Pacific Rural and Agricultural Credit Association (APRACA), Thailand Arijit Dutta, Chief Operating Officer, BASIX, India Calvin Miller, Senior Officer and Leader- Agribusiness and Finance Group, Food and Agriculture Organization of the UN (FAO), Italy Jackson Obare Marwanga, Head of Programs/Consultancy, K-Rep Development Agency, Kenya

31

Day 2 Wednesday, 16 July

Session

Time Room

[S37] Capacity-building: what is missing in agri-value chain finance training and how to fill the gaps?

11:00-12:30 Kifaru

Session

Time Room Description

Description

Over the years substantial effort has been made in Africa and in the world to ensure that agriculture remains a productive sector of a country’s industry.

Forums, workshops and conferences have taken place especially on issues of policy and creating an enabling environment for agri-value chain players.

One key recommendation that has always stood out in these forums is the need for capacity building for value chain players and especially in agri-value chain finance. Agriculture being quite heterogeneous has made capacity building critical for each player in the chain. Agri-value chain finance capacity building programmes are welcome feature in many countries in the form of training for financial service providers, organisation of exchange visits for farmers, agriprocessors and traders, and agri-value chain stakeholder forums. Financial institutions now have an idea of what products to develop in order to lend to agribusinesses. Farmers are becoming financially literate on what loans to go for as far as farming is concerned. Curricula development for these agrivalue chain finance capacity building programmes, measuring the impact on the beneficiaries and knowing the areas to upscale are key sections that still need to be clearly spelt out.

Session Organiser

Rural Finance Knowledge Management Partnership (KMP)

Session Organiser Moderator

Chairperson

[TBD] Please check http://fin4ag.org/en/agenda.html Speakers

Speakers

32

Lecira Juarez, Managing Director, The Asia Pacific Rural and Agricultural Credit Association (APRACA), Center for Training and Research for Agricultural Banking (CENTRAB), The Philippines Dorothy Nduku Kipsang, Regional Programme Coordinator – Financial Services, We Effect, Kenya Harm Haverkort, Microfinance Advisor, Terrafina Microfinance, Ethiopia Nomathemba Mhlanga, Agribusiness Economist, Rural Infrastructure and Agro-Industries Division FAO, Italy Dr. Ochola Phares, Project Coordinator, African Capacity Building Foundation (ACBF)-funded Masters Project, and the Regional Certificate in Agricultural Finance (CAF), Kenya School of Monetary Studies Moritz Waldstein Wartenberg, Transparency Innovations Manager, TechoServe, Ethiopia

[S44] Applying human-centred design to smallholder agricultural finance 11:00-12:30 Kiboko Estimated at US$450 billion, the global demand for smallholder agricultural finance is large – and largely unmet. Some of the most promising efforts to improve access to finance for smallholder farmers seek to be ‘demand-driven’, yet it is challenging to understand the needs of smallholders when a large majority of them are loosely organised, if at all, in informal supply chains. Humancentred design – an approach that combines immersive end user research with active, handson collaboration from those serving the market – is one way practitioners can gain this critical perspective. Participants in this workshop will consider: How can a human-centred design approach reveal smallholder preferences? How do those preferences help practitioners shape the development of smallholder finance? And finally, what lessons and opportunities can human-centred design generate to inform broader agricultural finance and financial inclusion efforts? This session will draw on findings from the Initiative for Smallholder Finance's recent design lab (facilitated by Dalberg's Design Impact Group), which sought to uncover new thinking and innovative solutions to increase the availability of direct-to-farmer financing.

The Initiative for Smallholder Finance

Angela R. Hansen, Partner, Dalberg Global Development Advisors, South Africa [TBD] Please check http://fin4ag.org/en/agenda.html

Day 2 Wednesday, 16 July

Session

Time Room

[S26] Reinvigorating policy processes in support of a radical new agri-value chain financing agenda 14:00-15:30 Ndovu

Session

Time Room Description

Description

Session Organiser Chairperson

Speakers

Agricultural finance is often sidelined. Ministries of Agriculture tend to have limited expertise in the area, and limited contact with private sector financiers. Ministries of Finance tend to have little expertise in agriculture, and generally do not prioritise the sector. Central banks do not wish to engage in sectoral policies. Private sector financiers are wary of agricultural lending and consider this the responsibility of specialised, government-owned banks, but the latter do not have the means nor, in many cases, the management structure necessary to roll out an innovative agricultural financing strategy. Farmers’ organisations tend to have too little agricultural finance expertise to lobby effectively for improvements in the domain. A radical new agri-value chain financing agenda requires a big change in all of this. Under the leadership of the New Partnership for Africa’s Development Secretariat, this session will bring together a mix of stakeholders to debate what needs to be done to incorporate best practices into agricultural financing policy processes, building on the discussions in other conference panels.

(S22] Adopting an agri-value chain financing strategy in a micro-finance institution 14:00-15:30 Simba Basix, established in 1996, is a livelihood promotion institution, which started providing microcredit to India’s rural poor. The various microcredit products are offered to individuals, joint liability groups, farmers’ group, and women self-help groups. This helped Basix increase its client base in an organic way and maintain good portfolio quality. Basix is the first institution to receive investment from IFC, and secure its loan portfolio with commercial banks in India.

Basix commissioned an impact study conducted by the Indian Market Research Bureau for its credit services. This study revealed that about 52% of its clients reported a positive impact, 23% no change and approximately 25% reported a decline in their income.

These findings led to a fundamental shift in the way that Basix operated, from micro-finance to livelihood promotion. Basix identified the reasons why clients’ incomes did not increase (unmanaged risk, low productivity, and unfavourable terms in interacting with markets), and started addressing these explicitly in its lending operations.

Technical Centre for Agricultural and Rural Cooperation (CTA)

The result was a new generation micro-finance institution (MFI) adapted to the realities of agriculture. In this session, senior Basix managers will share how a MFI can successfully adopt an agrivalue chain financing strategy, and their experiences in managing the many risks to which a MFI with a focus on rural areas is exposed.

[TBD] Please check http://fin4ag.org/en/agenda.html Daniel Gad, Owner, Omega Farms, Ethiopia Session Organiser Chairperson

Speakers

Basix Social Enterprise Group

[TBD] Please check http://fin4ag.org/en/agenda.html Arijit Dutta, Chief Operating Officer, Basix Social Enterprise Group, India B L Parthasarathy, Group Senior Vice President, Basix Social Enterprise Group, India

33

Day 2 Wednesday, 16 July

Session

Time Room Description

[S10] Support mechanisms to agri-value chain finance 14:00-15:30 Chui Agricultural investment funds and credit guarantee schemes can play a critical role in fostering the development of agri-value chains, since they contribute to growth, productivity increases, risk mitigation and hence sustainable development.

The growth of investment funds for agriculture has been importantly spurred by increasing returns as well as because of innovation and experience in risk mitigation of investment. Guarantee schemes have been used over the years in many countries, more frequently for small enterprise loans in diverse sectors, but they are now quite common in agriculture and agribusiness. There is renewed interest in using them to increase investment in the sector and to ensure that investment is directed towards target groups and agro-industries that are deemed too risky for adequate financing without such risk-sharing incentives. In this session, presenters will discuss and showcase their experiences with support instruments and mechanisms for agri-value chain finance, such as ad-hoc investment funds and innovative guarantee schemes.

Session Organiser

Food and Agriculture Organization of the United Nations (FAO)

Chairperson

Nassa Idrissa, Vice Chairman, AFRACA, and Director-General, Coris Bank, Burkina Faso

Speakers

Fred Kiteng’e, Director of Lending, East Africa, Root Capital, Kenya IFAD Sabdiyo Dido Bashuna, Regional Coordinator, East and Southern Africa/Global Gender in Agriculture Coordinator, SNV Netherlands Development Organisation, Kenya [TBA], Development Credit Authority (DCA), USAID, USA Hannah Fuellenkemper, Analyst, Financial Access Capital Partners, The Netherlands

34

Session

Time Room

[S38] Information, communication and knowledge management in value chain financing: lessons learnt 14:00-15:30 Kifaru

Description

One key to success is to ‘know the business and the client’. The value chain concept is becoming important in assisting financial institutions to make lending decisions and develop relevant products. Using knowledge of a value chain to assess its strengths and the risks faced, enables a financial institution both to make lending decisions and to plan its overall portfolio. However, such innovations in financing are still not widely known, nor have they been systematically monitored and evaluated because very often information demand is not matched by adequate supply, as information is either not readily available or, when it is available, not properly documented, detailed enough, packaged well, or disseminated outside organisations. Improved knowledge management provision will help financial institutions to better understand what works and what does not, and under what conditions. For example, a means to communicate innovations is presently lacking, e.g. through a repository of innovative models and methodologies. For financial institutions to provide value chain finance it is also critical for them to have agricultural experts who can better understand the agricultural sector, analyse risks, and develop appropriate financial products. Unfortunately, universities in many African, Caribbean and Pacific countries are not presently geared to supply graduates with the necessary skills. Therefore, there is a need to translate information into knowledge so that knowledge can be applied and replicated.

Session Organiser

Rural Finance Knowledge Management Partnership (KMP)

Chairperson

Speakers

[TBD] Please check http://fin4ag.org/en/agenda.html Calvin Miller, Senior Officer and Leader, Agribusiness and Finance Group, Food and Agriculture Organization of the UN (FAO), Italy Jared Getenga, Interim CEO, Association of Kenya Credit Providers (AKCP) Marise Blom, general manager, SCOPEinsigh, The Netherlands Dr. Marlowe U. Aquino, Project Manager, IFADAPRACA FinServAccess Regional Project, AsiaPacific Rural and Agricultural Credit Association

Day 2 Wednesday, 16 July

Session

Time Room Description

[S51] The Caribbean farmers' challenge: factoring for farmers 14:00-15:30 Twiga Like many farmers elsewhere, Caribbean farmers finance their buyers. According to research done in the late 2000, those who sell to organised buyers such as supermarkets, hotels or cruise lines had to wait an average of 71 days to be paid. This worsens already cash flow-constrained situation of farmers, to the detriment of their livelihoods and investment possibilities.

In many countries, there are mechanisms that permit those holding such ‘receivables’ (acknowledged confirmation that reputable buyers are to pay certain sums) to ‘discount’ them, that is to say, receive an immediate cash payment – this is called factoring. The discount is a function of the cost of financing and the default risk of the buyers, and in most situations, farmers would be better off if they could ‘discount’ their invoices with buyers against immediate cash payments. The farmers who are members of the Caribbean Farmers Network (CaFAN) collectively sell for US$100 million a year to organised buyers. Is it possible to establish a factoring facility for Caribbean farmers? How would it be structured?

What role can a development bank play? What is the role of technology? Participants will be challenged to draw up a roadmap for a Caribbean factoring facility.

Session Organiser Chairperson

Session

Time Room

[S14] Public-private interventions to promote agri-value chains finance and better agricultural risk management mechanisms: lessons learnt 16:00-17:30 Ndovu This session will enable participants to develop an interactive discussion focusing on how to facilitate public-private coordination that enables an integral management strategy. Public-private partnerships can provide a solid foundation to deal with the complexity of certain value chains and the management of the risk associated to their operations – dividing areas of responsibility according to core competencies, resources and mission.

Participants will be invited to share their view and the lessons learnt from ground experiences.

Session Organiser Chairperson Speakers

Food and Agriculture Organization of the United Nations (FAO) [TBD] World Bank/Agrifin [TBD] Please check http://fin4ag.org/en/agenda.html

Technical Centre for Agricultural and Rural Cooperation (CTA) [TBD] Please check http://fin4ag.org/en/agenda.html

Speakers

Jethro Greene, Chief Coordinator, Caribbean Farmers Network (CaFAN), St. Vincent & The Grenadines

Commentators

Munyutu Waigi, Co-founder, Umati Capital, Kenya Niko Kluyver, General Manager & Partner FactorPlus, Caribbean Factoring Services B.V. dba FactorPlus, Curaçao

€

35

Day 2 Wednesday, 16 July

Session

Time Room Description

[S18] The ins and outs of successful warehouse receipt finance 16:00-17:30 Simba As banks mostly lend against the collateral of fixed assets, the majority of commodity value chain actors, like most of the small and medium enterprise sector, are short of working capital. Collateral management can unlock floating assets, in particular commodity stocks, as valid collateral for financiers, thus greatly enhancing access to working capital finance. Here, the financier engages a third party, called a collateral manager, to take physical control over the inventory at a borrower’s premises. The collateral manager effectively removes control over the stock from the borrower.

He provides assurance over the continued presence of the commodities, and is liable to the bank if, in the case of a loan default, the bank finds that the commodities are no longer present. Collateral management has proven an effective tool in lending worldwide. However, it comes with its own risks, and successful use requires a bank to follow certain principles. The session will discuss how a bank can make proper use of collateral management tools, and what opportunities it can open up by such use.

Session

Time Room

[S39] Increasing access to finance for young agro-entrepreneurs: innovative models and replication issues 16:00-17:30 Chui

Description

The lack of agricultural financial assets is one of the key challenges that young people face when they are engaged in agricultural entrepreneurship. Young people naturally lack savings, especially when they are unemployed or students. Due to the uncertainty inherent to their young age and their lack of capacity, financial service providers are either reluctant to include them, or merely exclude them from their schemes. Youths are unable or find it very difficult to provide collateral. While all organisations and governments as well as the international community recognise that it is vital to strengthen the engagement of young people in agriculture in order to sustain current and future food security and prevent social unrest, there is an urgent need to improve and enhance initiatives aimed at securing capital for youth agribusinesses. This session will discuss the development and sustained replication of innovative models of youth inclusive agricultural finance services, throughout the entire value chain. Key issues such as capacity building on financial services, promotion of public-private pro-youth financial services, and opportunities offered by ICTs, will be covered as well. Discussions will be interactive, taking the form of a chat show followed by world café.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Isaac Awuondo, Group Managing Director, Commercial Bank of Africa Limited, Nigeria

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Speakers

Richard Wangwe, Head Agriculture, Stanbic Bank Uganda Limited, Uganda Abdou Konlambigue, Programme Officer Market Access, Alliance for a Green Revolution in Africa (AGRA), Kenya Robert Pascal, Head of Agribusiness, National Microfinance Bank Limited, Tanzania [TBA] Caisse d’épargne et de crédit agricole mutuels (CECAM), Madagascar

Chairperson

Ken Lohento, ICT4D Programme Coordinator, CTA, The Netherlands

Cochairperson

Ayodeji Balogun, Business and Investment Office, Africa Exchange Holdings Ltd, Nigeria

Speakers

Lauren Servin, Country Manager, SPARK, South Sudan Opio Obwangamoi David, Founder and Lead, Ensibuuko, Winner of the Hackathon, Uganda Gerald Otim, Uganda, Ensibuuko, Winner of the ICT4Ag Hackathon, Uganda, Representative, FAO, Kenya [TBA] Youth Venture Capital Fund, Uganda [TBA] Projet de Promotion de l’Entreprenariat Rural (PROMER), Senegal Please check http://fin4ag.org/en/agenda.html

36

Day 2 Wednesday, 16 July

Session

Time Room

[S52] Lifting barriers to the development of agricultural insurance 16:00-17:30 Kifaru

Description

Insuring against crop and livestock losses due to climatic hazards allows farmers to protect their income and invest more on their farms, thanks in particular to easier access to credit. However, although Africa accounts for a large share of cultivated land, its current market for agricultural insurance is still very small. What are the main impediments limiting the supply and demand of agricultural insurance? Drawing lessons from projects carried out in different countries, the session will focus on the impact of technology, the role of producer organisations and public policies, as well as potential synergies between insurance and the financing of agriculture.

Session Organiser

Foundation for World Agriculture and Rurality (FARM)

Chairperson

Jean-Christophe Debar, Director, Foundation for World Agriculture and Rurality (FARM), France

Speakers

Ismaila Diakité, Chairman of the Board, Malian cooperative Coopérative des producteurs et cultivateurs du Mali (CPOROCUMA) Sylvain Dufour, Farm Credit Advisor, Développement International Desjardins, Haiti Dr. Andrew Mude, Project Leader, Index-Based Livestock Insurance Program, ILRI, Kenya Francesco Rispoli, Technical Advisor, Rural Finance, IFAD, Italy

Session

Time Room

[S6] Experiences in financing horticultural exports 16:00-17:30 Twiga The horticultural trade between ACP countries and the EU plays an important role in meeting the UN’s 2015 Sustainable Development Goals. There is an opportunity today to promote a new agricultural model combining innovation, new technologies and sustainable agricultural practices where smallscale growers are recognised as competitive suppliers. Over the past 40 years, COLEACP has acquired extensive experience in supporting sustainable horticultural trade between ACP countries and the EU. Better access to financial services is one of the areas where more efforts need to be invested as the demand for small and medium enterprises (SME) and smallholder agricultural finance remains largely unmet throughout ACP countries. Meeting this demand requires various approaches tailored to the specific characteristics of each country and production system. The objective of this session is to identify the major growth pathways for deploying investments to address SME and smallholder finance for export horticultural supply chains. What type of financial mechanisms are available and for whom? Has the social lender model been successful for export horticultural supply chains? What are the conditions to meet in order to overcome the challenges faced by SMEs and small-scale growers?

How do multinational buyers use their relationships with exporters and farmers to originate loans, assess risk and collect payments?

Session Organiser

Europe-Africa-Caribbean-Pacific Liaison Committee (COLEACP) Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Vincent Fautrel, Senior Programme Coordinator for Agricultural Value Chain Development, CTA, The Netherlands

Speakers

Apollo Owuor, Director of Agriculture and Corporate Affairs, KHE Purity Naisho, General Manager, INTERVEG Representative, FPEAK Hugo Couderé, Senior advisor and head of portfolio for Africa and Asia, ALTERFIN Dan Awendo, CEO, InvestQ Capital Kenya Representative Kenyan Commercial Bank (KCB) 37

Day 3 Thursday, 17 July

Sessions Session

Time Room

[S32] Creating critical mass in warehouse receipt finance – discussion panel

Bespoke warehouse receipt finance is omnipresent, and can be found in the most difficult environments. In these cases, a collateral manager acts at the request of a bank or supplier to secure physical commodities, to turn these into effective collateral for a loan. The resultant risk reduction means lower interest rates, but each of these deals needs to be negotiated and transaction costs are too high for many value chain actors. On the other side of the spectrum there is public warehousing, where in principle everyone with commodities can deposit them in a warehouse and use warehouse receipts to secure loans – but most countries do not provide the necessary legal and regulatory environment for such a system to operate, and legal change has generally proven painful. If warehouse receipt finance is to be made accessible to a larger number of value chain players, including producers, what should be done? Should the focus be on public warehousing, however long it may take to create the needed conditions? Are there ways to spread the use of collateral management, for example by turning collateral managers into agents of banks?

Can banks be incentivised to do more warehouse receipt finance? How to move forward?

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Speakers

38

Time Room

[TBD] Please check http://fin4ag.org/en/agenda.html Dr.Charles Kimei, CEO and President, CRDB Bank, Tanzania Makiko Toyoda, Product Lead, Trade and Supply Chain - Global Warehouse Finance Program, International Finance Corporation (IFC), USA Dr. Gideon E. Onumah, Agricultural Economist/Rural Finance Specialist, University of Greenwich, United Kingdom Sata Ramamonjisoa, Senior Consultant, FTMH Conseils, Madagascar

[S27] Agricultural investment funds 08:45-10:30 Simba

Description

Despite the prevailing view that agriculture is risky, investment in agriculture is experiencing significant growth due to improved profitability projections, better mechanisms to pool investment to reduce risk, and interest of development agencies and governments to increase investment in the sector to achieve food security. Investment funds make investing less risky and easier since they not only pool investors and investments in a diversified portfolio. The investment fund managers provide the due diligence, oversight and administration to manage the investments. Private sector investment fund managers are increasing investments in the agricultural sector since demand for food and other agricultural products is expected to continue to increase. Private-public investment funds have become more common in recent years and are often structured with a double or triple bottom line of profit and sustainability, often with the aim of combating hunger and poverty. Despite interest of donors and social investors, public-private investments require that differing interests be arranged and managed carefully. Often donor funded technical assistance facilities are needed to accompany the investments. Challenges and opportunities for investments in agri-value chains will be discussed in this session by managers, directors and coordinators of the some of the most prominent investment initiatives in agriculture.

Session Organiser

Food and Agriculture Organization of the United Nations (FAO)

08:45-10:30 Ndovu

Description

Chairperson

Session

Chairperson

Speakers

[TBD] Please check http://fin4ag.org/en/agenda.html Fred Kiteng’e, Director of Lending, East and Southern Africa, Root Capital, Kenya Calvin Miller, Senior Officer and Leader, Agribusiness and Finance Group, Food and Agriculture Organization of the UN (FAO) Gilles Vercammen, Business Development Manager, Incofin Investment Management, Belgium Laura Mecagni, Head, Private Sector Window, Global Agriculture and Food Security Programme, International Finance Corporation (IFC), USA

Day 3 Thursday, 17 July

Session

Time Room Description

[S25] Progress of African commodity exchanges 08:45-10:30 Chui The first ‘modern’ commodity exchanges in Africa were created in Zambia and Zimbabwe in 1994, and in South Africa in 1995. While the first two failed, the South African Futures Exchange (SAFEX), a response to the government’s withdrawal from agricultural trade, went on to become Africa’s largest. A little over a decade later, 2008 saw the launch of the Ethiopian Commodity Exchange (ECX), now the second largest. Unlike the earlier initiatives, ECX was a government venture, buoyed by massive government and donor support: it showed that a commodity exchange can be successful even in a country with poor infrastructure and an underdeveloped commodity sector. Meanwhile, Malawi’s Agricultural Commodity Exchange has achieved sustained volumes despite lacking such massive support. A count of African exchange initiatives shows that there are, or have been, exchange initiatives of some sort in 28 countries, including numerous national initiatives alongside a few ambitious and well-funded sub-regional and regional ones.

This panel will review how the current wave of emerging exchanges is playing a critical role in developing and strengthening warehouse receipt systems, facilitating directly and indirectly the financing of commodity stocks. How are exchanges likely to change the landscape of commodity finance in Africa?

Session

Time Room Description

Session Organiser

[S16] The role of technical assistance in lending products for smallholder agriculture 08:45-10:30 Kifaru Specialised agriculture technical assistance to the lender and borrower through soil health management, quality input acquisition and on-farm management are required to improve access to credit in the agricultural sector through a formal approach. The technical assistance can be coordinated by a special purpose vehicle (SPV) which can formally organise and recommend the agriculture-based services required through mobile tools and crop insurance as part of a ‘real time’ information network as an example of chain of activities which can mitigate risk. The knowledge acquired from various organisations led by the Syngenta Foundation will look at ‘the role of technical assistance in lending to agriculture’ to help increase access to credit for smallholder farmers by sharing knowledge on options available, and unexploited potential by both borrowers and lenders.

A SPV will be recommended as a cost effective option to catalyse the creation of a high quality member based ‘reference bureau’ for lenders who need to formally acquire deeper knowledge in agriculture to improve, enhance, and speed up the quality of their interaction with a smallholder farmer. The proposed organisation will be designed to support rural based borrowers utilising a real time information transmission network.

Syngenta Foundation for Sustainable Agriculture

Session Organiser

NEPAD Business Council Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Moly Dingani, Chair Southern Africa Sub Region (SACRAT), AFRACA, and Divisional Director, Retail Banking, CBZ Limited, Zimbabwe

Chairperson

Lamon Rutten, Manager, Policies, Markets and ICT, CTA, The Netherlands

Speakers

Speakers

Adam Gross, Investment and Capital Markets Advisor, NEPAD Business Council, South Africa Paul Kukubo, Chief Executive Officer, East Africa Exchange (EAX), Rwanda Kristian Schach-Möller, Chief Executive Officer, Agricultural Commodity Exchange for Africa (ACE), Malawi

George Osure, Program Director, Syngenta Foundation for Sustainable Agriculture, Kenya George Waigi, National Projects Officer, International Labour Organisation (ILO), Kenya Nicholas Daniels, East Africa Government Relations Manager, One Acre Fund, UK

$ 39

Day 3 Thursday, 17 July

Session

Time Room

[S50] The Southern African farmers’ challenge: climate finance for agriculture 08:45-12:30 Twiga

Description

Transforming African agriculture in the face of climate change will call for unprecedented levels of investment. Substantial, predictable and longterm climate finance will be required to support a transition to climate-smart agriculture in Southern Africa. The session will explore public, private and multi-lateral options for climate finance. Perspectives from a broad range of stakeholders will be shared on priority areas for investment, appropriate financing instruments, and the institutional systems required to drive these actions. Participants will include farmers’ leaders, practitioners, policymakers and scientific partners.

Session Organiser

Southern African Confederation of Agricultural Unions (SACAU) Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Dr. Oluyede (Olu) Ajayi, Senior Programme Coordinator, CTA, The Netherlands

Speakers

Theo de Jager, President, SACAU, South Africa Lloyd Chingambo, Chairman, African Carbon Credit Exchange (ACCE), Zambia Kai Windhorst, Consultant, Unique-landuse, Uganda Ishmael Sunga, Chief Executive Officer, SACAU, South Africa

40

Session

Time Room

[S15] Guarantee schemes: experiences and lessons learnt 11:00-12:30 Ndovu

Description

Various types of guarantee systems and schemes are used to increase lending or investing to the targeted sectors or type of enterprises by sharing or absorbing the risks associated with lending.

Guarantees not only can increase the amount of loan funds available to an enterprise or a portfolio of investment beyond its own collateral limits but also the due diligence and monitoring of the guarantee manager can improve the quality of the loans made. However, guarantee funds have a cost, which is paid through the fees charged and/or subsidised by the government or a donor.

Questions arise regarding the costs versus the benefits when a subsidy is needed. What is the value added of guarantee funds in reducing the risks to lending, and how much do the funds influence lenders’ decision-making regarding whether or not to lend? There is considerable renewed interest in using guarantees to increase investment in agriculture and small and medium enterprises that are deemed too risky for adequate financing without such risk-sharing incentives. Presenters will discuss their applications and results of guarantee funds for agricultural and rural enterprise development.

Session Organiser

Food and Agriculture Organization of the United Nations (FAO)

Chairperson

Anthony Olufidipe, Deputy General Manager and Head of Agricultural Department, Union Bank of Nigeria, and Chairman AFRACA Wacrat 2

Speakers

Nomathemba Mhlanga, Agribusiness Economist, Rural Infrastructure and Agro-Industries Division, FAO, Italy Josephine N. Mukumbya, Chief Operating Officer, aBi Finance Ltd, Uganda Prasun Das, Project Manager, Asia Pacific Rural and Agricultural Credit Association (APRACA), Thailand.

Uzoma Onuoha, Deputy Director, Agricultural Credit Guarantee Scheme, Nigeria

Day 3 Thursday, 17 July

Session

Time Room Description

[S3] Crowdfunding for ACP agriculture: initiatives, challenges and perspectives 11:00-12:30 Simba Crowdfunding, the collection of financial resources directly from the public (the ‘crowd’), usually through internet platforms, has emerged as an innovative means to fund projects and ventures. It is believed to have helped companies and individuals worldwide raise US$2.66 billion in 2012, with more than 1 million individual campaigns established globally. It takes different forms with different business models. Due to the improved internet penetration in African, Caribbean and Pacific (ACP) countries, an increasing number of agricultural projects are also being funded via this mechanism in these regions, from small-scale farming to larger ventures. This session will discuss the use of this novel financial instrument for ACP agriculture, its challenges, models and ways to unlock its full potential.

Session

Time Room

Technical Centre for Agricultural and Rural Cooperation (CTA)

Facilitator

Ken Lohento, ICT4AD Programme Coordinator, CTA, The Netherlands

Chairperson

Patrik Huber, Regional Manager Africa, ResponsAbility, Switzerland

Speakers

Thameur Hemdane, Founder/CEO, Adiaspii.org, France Opio Obwangamoi David, Founder and CEO, Ensibuuko, Winner of the ICT4Ag Hackathon, Uganda Stephanie Mbida, Co-Founder and CEO, KickLoans, Canada David Kitusa, Regional Representative, Anglophone Africa, KIVA, Kenya

11:00-12:30 Chui

Description

Agricultural digital finance includes savings, credit and insurance. This panel will discuss self-administered mobile Layaway savings in Mali, weatherindexed input supply micro-insurance in Kenya and the use of big data analytics for alternative credit scoring. Once the basic infrastructure is built, most often for facilitating payments, these and other value added services could be included in the infrastructure. The limiting constraint is not technical in nature but, as the panellists will portray, it is more about the requisite business model innovations in the areas of awareness, partnerships, education and delivery.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Moderator Session Organiser

[S47] Agricultural digital finance: more than payments

Speakers

Please check http://fin4ag.org/en/agenda.html Michael Turner, President and CEO, PERC; Ivan Mbowa, Co-Founder, Umati Capital; Stanley Munyao, Chief Operating Officer, Musoni Kenya Limited; Agrotosh Mookerjee, Principal Actuary, MicroEnsure

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Day 3 Thursday, 17 July

Session

Time Room

Session [S7] New strategies for financing agricultural mechanisation 11:00-12:30 Kifaru

Description

In the 1960s many African states set up programmes of large-scale farming which promoted mechanisation. However, these programmes have failed, which has led to a lot of scepticism about mechanisation policies. Currently, agencies which dare to design mechanisation programmes, simply provide equipment but hardly integrate its maintenance in their strategies. It is very easy to put equipment in place but maintaining it is a challenge. Nevertheless, if African agriculture is to become a modern sector, it needs to mechanise. But how? And how should mechanisation be financed? Today, this is far from clear.

Nigeria is currently setting up a mechanisation programme, but it is based on many assumptions. Are we making the right choices? Should we go for a strategy based on cooperatives in rural areas, or a public-private partnerships?

Should mechanisation be subsidised by the government, or driven by the market? From the few examples of recent mechanisation policies that we can see, what has worked and what has not?

These are the issues this session will discuss.

Session Organiser

Federal Ministry of Agriculture of Nigeria (FMARD) African Rural and Agricultural Credit Association (AFRACA)

Chairperson

Rommel Acevedo, Secretary General (CEO), Latin American Association of Development Financial Institutions (ALIDE), Peru

Speakers

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Dr. Ahmed D. Adekunle, Federal Ministry of Agriculture of Nigeria (FMARD) Engr. Bitrus Elesa, Tractor Owners and Operators Association of Nigeria (TOOAN) Thomas N. Etuh, Chairman, TAK Continental Limited, Nigeria Philip Ikeazor, Managing Director/CEO, Keystone Bank Limited, Nigeria Lucas Meso, Managing Director, Agricultural Finance Corporation, Kenya

Session

Time Room

[S28] Positioning farmers’ organisations in agri-value chain finance: debate 14:00-15:30 Ndovu

Description

It is undeniable that farmers are severely constrained in their access to credit, both for investment and for working capital purposes. It is also undisputed that most of the past centralised, state-driven approaches have failed to resolve these constraints. Newer approaches, using micro-finance techniques adapted to agriculture, value chain financing mechanisms centred around private sector buyers, agri-leasing and the like, hold out much more promise. How should farmers’ organisations position themselves in the debate on a new landscape for agricultural finance?

Should they lobby for subsidised credits, or for improvements in the legal and regulatory framework for such credits? Should they seek to build themselves the institutions for improved agricultural finance (e.g., farmer-owned banks), or enter into strategic alliances with the private sector? Should they put cooperatives in a central position in the distribution of credits, or should they focus on helping to create systems in which individual farmers have immediate access to credit? What role can farmers’ organisations play in the national and regional debates on agricultural finance, for example in the context of the Comprehensive Africa Agriculture Development Programme’s national investment plans?

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

[TBD] Please check http://fin4ag.org/en/agenda.html

Speakers

[TBD] Please check http://fin4ag.org/en/agenda.html

Day 3 Thursday, 17 July

Session

Time Room Description

[S54] Weather risk management and agricultural finance 14:00-15:30 Chui Profitable farmers tend to reimburse their loans.

Inversely, in the absence of insurance, even welldesigned agricultural lending operations can expect massive defaults when farmers’ crops are wiped out by an extreme weather event. Farmers’ capacity to repay loans is directly correlated to their yields, and therefore their lenders are directly exposed to the risk of, say, poor rainfall.

Banks should, like their farmer clients, be covered against catastrophic risk, and if possible, also some of the more common risks. But products to manage these risks have been scarce in developing countries However, over the past decade, there has been much work on introducing weather risk management tools, and engineering vehicles to bring them to farmers (e.g. bundling with input supply).

Not all efforts have been successful. But some have. How far are we now from replicating and rolling out successful structures? How dependent are we on development agencies and governments to subsidise weather risk management schemes? Do banks really understand how they should use weather risk management instruments? A panel of some of the most experienced experts in this field will debate these issues.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

H.E. Mr. Johnson Weru, Ambassador, Embassy of the Republic of Kenya in Brussels, Belgium

Speakers

Dr. Shadrek Mapfumo, Senior Financial Specialist, Global Index Insurance Facility Program Manager, International Finance Corporation (IFC), South Africa Ulrich Hess, Consultant, Germany B L Parthasarathy, Group Senior Vice President, Basix Social Enterprise Group, India [TBD] Please check http://fin4ag.org/en/agenda.html

Session

Time Room

[S2] Experiences in financing fishing and fish farming 14:00-15:30 Kifaru

Description

For a large number of ACP countries the fisheries and aquaculture industry represents a substantial part of their economy (creation of jobs, currency revenues) and contributes directly to the food security of populations. With the very strong growth of urban markets up to 2050, the demand for fishery products is expected to increase significantly in the coming years, at a time when certain resources are tending to decrease sharply. The funding of the development of sustainable fisheries and aquaculture systems is a major issue at the very time the industry is undergoing farreaching internal and external changes. This parallel session will focus on the different mechanisms for funding fisheries and aquaculture and recent developments. It will also highlight the role of the various public and private stakeholders and will attempt to develop guidelines on the basis of examples of innovative financing.

Session Organiser

Technical Centre for Agricultural and Rural Cooperation (CTA)

Chairperson

Vincent Fautrel, Senior Programme Coordinator Agricultural Value Chain Development, CTA, The Netherlands

Speakers

Gaoussou Gueye, Secretary General, African Confederation of Artisanal Fisheries Professional Organizations (CAOPA), Senegal Beth Wagude, CEO, Kenya Fish Processors and Exporters Association, AFIPEK Xavier Vincent, Senior Fisheries Specialist, World Bank, France Philippe Michaud, Chairman, Seychelles Fisheries Authorities, Seychelles Sloans Chimatiro, Senior Fisheries Advisor, NEPAD Planning and Coordinating Agency, South Africa Froukje Kruissen, World Fisheries Centre, Malaysia Elies Fongers, Senior Project Manager, Rabobank, The Netherlands

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Day 3

Field Trips

Thursday, 17 July

Friday 18 July

Closing Ceremony Time Room

16:00-17-30 Ndovu

Keynote Speech

Gideon Muriuki, Chief Executive Officer, Cooperative Bank, Kenya

Concluding Statements

Saleh Gashua, Secretary-General, African Rural and Agricultural Credit Association (AFRACA)

Vote of Thanks

Michael Hailu, Director, Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA)

Conference Closing

HE William Ruto, Deputy President of Kenya

After an early morning safari to Nairobi National Park (when the animals are at their most active), a breakfast is organised. After breakfast, participants will have the opportunity to take part in one of a number of exciting field trips organised by different organisations that will show how agricultural finance is already being transformed on the ground.

Field Trip 1 Kiambaa Constituency: Kiambaa Rural Dairy Sacco • Organiser: Cooperative Bank • Contact person: Monicah Wanjiku • Cell: +254 724 287 019; E-mail:rkiambaadairysacco@gmail.com Kiambaa constituency in Banana Town is situated at 25 km from the Kenyan School of Monetary Study. You will have the chance to visit Kiambaa Rural Dairy Sacco involved in a dairy value chain and see how access to finance has helped improve quality and delivery of milk in the constituency. 50 participants are expected to participate to this field trip.

Field Trip 2 Kieni Constituency

€

• Organiser: Farm Concern International (FCI) • Contact person: Stanley Mwangi • Cell: 0715408650; E-mail: stanley.mwangi@farmconcern.org Kieni is situated at 200 km from the Kenyan School of Monetary Study. You will have the chance to visit onion farmers and see how they have increased their incomes tremendously through commercial village formation and development of an innovative financial product in collaboration with a local micro finance institution. 30 participants are expected to participate in this field trip. www.farmconcern.org

Field Trip 3 Tala Town: Kyanzavi Farmers Company Ltd & Kilalani Farmers Coop Society Ltd • Organiser: Coffee Development Fund • Contact person: James Muema - +254 727915732; E-mail: jakamuc@yahoo.com and Michael Musyoka • Cell: +254 722137308; E-mail: michaelmusyoka15@yahoo.com Tala town is situated 60 km from the Kenyan School of Monetary Study. You will have the chance to visit both large & small scale coffee producers and see the different financing models used in each scale of coffee farming. 50 participants are expected to participate to this field trip. www.codf.co.ke

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Field Trips Friday 18 July

Field Trip 4 (Timau Town): Ntirimiti Centre

Field Trip 8 Kikuyu Town: Mineral and Allied Ltd

• Organiser: Syngenta Foundation • Contact person: George Osure • Cell: 0703019260; E-mail: george.osure@syngenta.com Timau town is situated 225 km from the Kenyan School of Monetary Study. You will have the chance to visit horticulture and Potatoes value chain financers for export and how financing has transformed lives of farmers in Timau. 30 participants are expected to participate to this field trip. www.syngentafoundation.org

• Organiser: Climate Innovation Centre • Contact person: Ernest Chitechi • Cell: +254 722108068 ; E-mail: echitechi@cickenya.org Mineral and Allied Ltd is situated 20 km from the Kenyan School of Monetary Study. You will have the chance to witness new innovation for climate resilience food production in agriculture to enhance food security. 30 participants are expected to participate to this field trip. www.kenyacic.org

Field Trip 5 Nyeri Town: Brade Gate Holdings Ltd

Field Trip 9 Kenyan Women Microfinance Bank (KWMB): Head office

• Organiser: Agricultural Finance Corporation • Contact person: Jackson Echoka • Cell: +254 711 590 641; E-mail: joechoka@agrifinance.org Nyeri town is situated 160 km from the Kenyan School of Monetary Study. You will have the chance to visit a poultry value chain of Brade Gate Holdings Ltd. 59 participants are expected to participate to this field trip.

• Organiser: Kenyan Women Microfinance Bank • Contact person: Isabella Nyambura • Cell: +254 703 067 700; E-mail: inyambura@kwftdtm.com KWMB is situated at 12 km from the Kenyan School of Monetary Study. You will have the chance to visit banking offices and see how women in agriculture have transformed their lives through KWMB. 30 participants are expected to participate to this field trip.

Field Trip 6 (Kajiado County): Zinger Enterprises Ltd Field Trip 10 Kiserian Town : Keekonyokie Slaughterhouse • Organiser: Agricultural Finance Corporation • Contact person: Wanjau Wambugu • Cell: +254 723 840 472; E-mail: joechoka@agrifinance.org Kajiado County is two hours drive from the Kenyan School of Monetary Study. You will have the chance to commercially oriented agricultural entrepreneur known as Zinger Enterprises Limited [ZEL], renown for steers breeding in the whole of Kajiado County. The company has been instrumental in provision of young high quality steers and breeding stock to the local community. 30 participants are expected to participate to this field trip.

• Organiser: Kenya Livestock producer Association • Contact person: Amos Thiong'o • Cell: 0721316598 Kiserian town is situated 29 km from the Kenyan School of Monetary Study. You will have the chance to visit a community owned slaughter house involved in the beef value chain. 30 participants are expected to participate in this field trip. www.klpakenya.org For further information please visit http://fin4ag.org/en/agenda.html

Field Trip 7 Enonkishu Conservancy: Mara Beef Company • Organiser: Agricultural Finance Corporation • Contact person: Jackson Echoka • Cell: +254 711 590 641; E-mail: joechoka@agrifinance.org Mara Beef Co. is situated in Enonkishu Conservancy in Narok County 270 km from the Kenyan School of Monetary Study. You will have the chance to visit Mara Beef Company involved in a beef value chain. 59 participants are expected to participate to this field trip.

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Parallel Events 2nd African Continental Briefing Promoting inclusive finance models for farmers in Africa

Date Time Room Organisers

13-14 July 2014 09:00-18:00 (13 July) 09:00-16:00 (14 July) Simba Pan African Farmer’s Organisations (FAFO) Technical Centre for Agricultural and Rural Cooperation (CTA) African Union Commission (AUC)

This Briefing is addressing the rural finance gap through agricultural value chain finance. Financial services providers often see high risks because they lack an understanding of the agricultural sector and food markets, and have no way to evaluate the risks in agricultural value chains. To most financial institutions, the cost of directly lending to small-scale farmers in remote rural areas is prohibitive and they are reluctant to finance rural entrepreneurs, citing high transaction costs and risks related to agriculture such as crop failure, diseases and market fluctuations as a justification. The result is a serious and long-lasting rural finance gap that keeps the economic potential of agriculture under used.

The development and business communities involved in the African agriculture and agribusiness sectors have recently experienced a tremendous resurgence of interest in promoting value chains as a way to add value, diversify rural economies, and contribute to increasing rural household incomes in most developing countries. Value chains are increasingly recognized as a means to reduce the rural poverty prevalent in the region. However, and from a development perspective, governments and support agencies must ensure that the financial systems in their countries are able to meet the demands arising from the growth of modern agro-food value chains. The renewed focus on agriculture and agribusiness, as priority sectors for spurring economic growth in Africa, calls for developing value chains that integrate producers and markets to make the agricultural sector more responsive to consumer demand.

Agricultural value chain management offers an opportunity to reduce cost and risk in financing and increase access to smallholder farmers, expand the financing opportunities for agriculture, improve efficiency and repayments in financing, and consolidate value chain linkages among participants in the chain. The specific opportunities that financing can create within a chain are driven by the context, business model and the relative roles of each participant in the chain.

For financial institutions, value chain finance creates the impetus to look beyond the direct recipient of finance so as to better understand the competitiveness and risks in the sector as a whole and to craft products that best fit the needs of the businesses in the chain. Value chain finance can help the chains become more inclusive, by making resources available for smallholders to integrate into higher value markets.

It is essential to improve access to reliable and timely information critical to take advantage of market opportunities. Lower costs of ICTs, such as mobile phones and the networks needed to connect them, have facilitated critical information to farmers, small traders and business people in production systems management, market access services, and financial inclusion. ICTs are among the most effective drivers of agricultural growth and transformation in ACP countries and inclusive agricultural value chains.

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Parallel Events After many years of declining investment, there is a renewed interest in agricultural financing. The best innovations in AVC finance depend on the chain, the capacity of the different stakeholders in the chain, the interests of the stakeholders and the socio-economic and political context. Agricultural value chain finance offers an opportunity to reduce cost and risk in financing and reach out to smallholder farmers, expand the financing opportunities for agriculture, improve efficiency and repayments in financing, and consolidate value chain linkages among participants in the chain. The specific opportunities that financing can create within a chain are driven by the context and business model and the relative roles of each participant in the chain.

“ Agricultural value chain finance offers an opportunity to reduce cost and risk in financing and reach out to smallholder farmers

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Side Meetings Meeting

Date Time Room Organiser

Meeting Date Time Room Organiser

ICT4Ag Hackathon: Learning and follow up workshop 11-12 July 2014 09:00 - 17:00 (11 July) 09:00 - 15:00 (12 July) Chui Technical Centre for Agricultural and Rural Cooperation (CTA)

Meeting Date Time Room Organiser

Media round table 14 July 2014 10:00 - 12:30 Library Technical Centre for Agricultural and Rural Cooperation (CTA)

Social reporting training 12-13 July 2014 09:00 - 17:00 (12 July) 09:00 - 15:00 (13 July) Seminar Room B5 Technical Centre for Agricultural and Rural Cooperation (CTA)

$

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Organisers Partner Organisations The Technical Centre for Agricultural and Rural Cooperation (CTA) CTA is a joint international institution of the African, Caribbean and Pacific (ACP) group of states and the European Union (EU). Its mission is to advance food and nutritional security, increase prosperity and encourage sound natural resource management in ACP countries. It provides access to information and knowledge, facilitates policy dialogue and strengthens the capacity of agricultural and rural development institutions and communities. CTA operates under the framework of the Cotonou Agreement and is funded by the EU. ww.cta.int

African Rural and Agricultural Credit Association (AFRACA) AFRACA is the association of central banks, commercial banks, agricultural banks, micro-finance institutions and national programmes dealing with agricultural and rural finance in Africa. The vision of the Association is a rural Africa where people have access to sustainable financial services for economic development. http://www.afraca.org

Food and Agriculture Organization of the United Nations (FAO) Achieving food security for all is at the heart of FAO's efforts – to make sure people have regular access to enough high-quality food to lead active, healthy lives. FAO’s three main goals are: the eradication of hunger, food insecurity and malnutrition; the elimination of poverty and the driving forward of economic and social progress for all; and, the sustainable management and utilisation of natural resources, including land, water, air, climate and genetic resources for the benefit of present and future generations. http://www.fao.org/about/en

Central Bank of Kenya (CBK) CBK was established in 1966 through an Act of Parliament – the Central Bank of Kenya Act of 1966. CBK has the responsibility of formulating monetary policy, promoting price stability, issuing currency and performing any other functions conferred on it by the Act of Parliament. The Constitution guides that “the Central Bank shall not be under the direction or control of any person or authority in the exercise of its powers or performance of its functions”. The mandate and objective of the Bank is to: (i) formulate 48

and implement monetary policy directed to achieving and maintaining stability in the general level of prices; (ii) foster the liquidity, solvency and proper functioning of a stable market-based financial system; and (iii) support the economic policy of the government, including its objectives for growth and employment. https://www.centralbank.go.ke

African Union Commission (AUC) The Commission is the Secretariat of the African Union entrusted with executive functions. The structure represents the Union and protects its interest under the auspices of the Assembly of Heads of State and Government as well as the Executive Committee. The AUC is made up of Portfolios. They are: Peace and Security; Political Affairs; Trade and Industry; Infrastructure and Energy; Social Affairs; Rural Economy and Agriculture; Human Resources, Science and Technology; and Economic Affairs. The mission of the Commission is become “An efficient and value-adding institution driving the African integration and development process in close collaboration with African Union Member States, the Regional Economic Communities and African citizens”. The AUC will endeavour to fulfil its mission by developing clear goals and strategies, and the values indicated above will constitute the basis on which the AUC will achieve its mission. They will also encourage the development of a service culture for the entire organisation. http://www.au.int/en/commission

Agence Française de Développement (AFD) AFD is the operator for France’s bilateral development finance mechanism. It is a public industrial and commercial institution with the status of being a specialised financial institution. Its action is in line with the policy set out in France’s Framework Document for Development Cooperation. AFD has been entrusted with a mandate by French national authorities to contribute to economic and social development in its geographical areas of operation. It achieves this by financing and supporting development projects and programmes, and participating in debate, research and dialogue with relevant stakeholders. The aim of these actions is to contribute to more sustainable and shared economic growth, improve living conditions in the poorest regions and countries, contribute to preserving the planet, and help stabilise fragile or post-conflict countries. AFD’s teams are based in Paris and Marseille and in a network of 70 agencies and representations in developing countries and French overseas provinces. http://www.afd.fr

Organisers Alliance for a Green Revolution in Africa (AGRA)

Eastern Africa Farmers Federation (EAFF)

AGRA is a dynamic partnership that exists to fulfil the vision that Africa can feed itself and the world. Investing in agriculture is the surest path to reducing poverty and hunger in Africa. AGRA works across the African continent to help millions of small-scale farmers and their families lift themselves out of poverty and hunger. Their programmes develop practical solutions to significantly boost farm productivity and incomes for the poor while safeguarding the environment. AGRA advocates for policies that support its work across all key aspects of the African agri-value chain from seeds, soil health and water to markets and agricultural education. http://agra-alliance.org

The role of the EAFF is to voice the concerns and interests of farmers in the region, with the aim of enhancing regional cohesiveness and socio-economic development of farmers, representing, lobbying and advocating for Eastern African farmers’ interests and building their capacities. The Federation also endeavours to promote regional integration through promotion of trade and good neighbourliness, to strengthen information exchange between country producer organisations, and seek benefits from comparative advantages in farm input supply and market options. EAFF is in the process of developing a Web 2.0 media strategy, in line with its strategic plan, which will enhance sharing and dissemination of information, communication, knowledge management networking and visibility. http://eaffu.org/eaffu

Association of Microfinance Institutions (AMFI) – Kenya AMFI is a member-based institution, registered in 1999 under the Societies Act by the leading micro-finance institutions (MFI) in Kenya, with the aim to build the capacity of the Kenyan microfinance industry. The main reasons for its establishment were the need for MFIs to have a common voice, to lobby government for favourable policies, to share information and experiences, and to link up and network with both local and international actors. AMFI currently has 59 member institutions which range from large, mature MFIs to relatively smaller and rural MFIs, wholesalers and retailers as well as micro-insurance providers. AMFI is governed by a General Assembly and Board of Directors who are experienced practitioners that run some of the leading MFIs in Kenya. An Executive Committee comprised of the chair, vice chair, treasurer, secretary and three committee members, provides general policy guidelines and directions to the Association. http://www.amfikenya.com

BASIX – India BASIX is a livelihood promotion institution established in 1996, working with over 3.5 million customers, over 90% being poor rural households and about 10% urban slum dwellers. BASIX’s mission is to promote sustainable livelihoods, through the provision of financial services and technical assistance in an integrated manner. BASIX will strive to yield a competitive rate of return to its investors so as to be able to access mainstream capital and human resources on a continuous basis. Their strategy is to provide a comprehensive set of livelihood promotion services which include financial inclusion services, agricultural/business development services and institutional development services to poor rural households under one umbrella. BASIX works in 17 states of India – 223 districts and over 39,251 villages. It has over 10,000 staff, of which 80% are based in small towns and villages. http://www.basixindia.com

Europe-Africa-Caribbean-Pacific Liaison Committee (COLEACP) Created 40 years ago as an association of companies trading in exotic fruit and vegetables, COLEACP has evolved into an organisation that is supporting the development of sustainable agriculture in African, Caribbean, and Pacific countries. COLEACP became a public-private partnership, and is now a provider of multiple-services to the international horticultural industry covering research and development, market access, technical assistance, training, and lobbying, among others. http://www.coleacp.org/en

Federal Ministry of Agriculture and Rural Development (FMARD) – Nigeria FMARD is a Ministry of the Nigerian Government that regulates agricultural research, agriculture and natural resources, forestry and veterinary research all over Nigeria. Established in 1966, the Ministry has the responsibility of optimising agriculture and integrating rural development for the transformation of the Nigerian economy, with a view to attaining food security and positioning Nigeria as a net food exporter for socio-economic development.

The mandate of the Ministry is to be a significant net provider of food to the global community, through the promotion of agricultural development and management of national resources in a valuechain approach to achieve sustainable food security, enhance farm income and reduce poverty. http://www.fmard.gov.ng/index.php

International Finance Corporation (IFC) IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. Established in 1956, IFC is owned by 184 49

Organisers member countries, a group that collectively determines its policies.

Our work in more than a 100 developing countries allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. http://www.ifc.org

International Fund for Agricultural Development (IFAD) IFAD works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested about US$14.8 billion in grants and low-interest loans to developing countries through projects empowering over 400 million people to break out of poverty, thereby helping to create vibrant rural communities.

IFAD is an international financial institution and a specialised UN agency based in Rome – the UN’s food and agriculture hub. It is a unique partnership of 172 members from the Organization of the Petroleum Exporting Countries, other developing countries and the Organisation for Economic Co-operation and Development. http://www.ifad.org

Inter-American Institute for Cooperation on Agriculture (IICA) IICA is the institution of the Inter-American System that provides technical cooperation, innovation and specialized knowledge to contribute to the competitive and sustainable development of agriculture in the Americas and to improve the lives of rural dwellers in the member countries. To be a leading and innovative institution in the provision of technical cooperation for agriculture, known for its contributions to making the agrifood sector competitive, achieving the sustainable development of agriculture, promoting food security, reducing poverty and improving living conditions in the rural territories of the Americas, based on its strong technical expertise and capacity to provide solutions to the new challenges facing the member countries in these areas. http://www.iica.int/

ern Africa and other hubs in Eastern, West and Southern Africa and South, Southeast and East Asia. ILRI employs ICTs to connect its staff and partners, to make its knowledge and information accessible, and as a tool in its research. Many of its projects are experimenting with ICTs, notably mobile phones, geographic information systems, radio, video, and the internet as tools to extend their engagement with partners and enrich the interactions with communities and policymakers. http://www.ilri.org

Kilimo Trust The Kilimo Trust is an independent organisation working on agriculture for development across the East Africa Community region – in Burundi, Kenya, Rwanda, Tanzania, and Uganda – and more recently in the Republic of South Sudan. It promotes regional solutions to local problems to make agricultural markets work better for the reduction of poverty and elimination of hunger. The Kilimo Trust implements and manages programmes and projects in partnership with and/or on behalf of governments, international and regional organisations, and the private sector. The Trust spearheads market-driven solutions designed to "deliver the promise of the East African Common market" with respect to reducing poverty and eliminating hunger in the region. http://www.kilimotrust.org

Making Finance Work for Africa (MFW4A) The MFW4A Partnership supports the efforts of African countries to strengthen their financial sector by coordinating and facilitating financial sector initiatives, promoting closer collaboration among development partners, and fostering exchanges among African stakeholders. Initially welcomed by the G8 in the 2007 Heiligendamm Declaration, the MFW4A Partnership recognises the role of the financial sector in driving private investment, economic growth and employment creation. Thirteen founding multilateral and bilateral development partners support the Partnership with a shared common vision to overcome fragmentation, and increase efficiency and effectiveness to develop Africa's financial sector. http://www.mfw4a.org

International Livestock Research Institute (ILRI) ILRI works to improve food security and reduce poverty in developing countries through research for better and more sustainable use of livestock. ILRI is a member of the CGIAR Consortium, a global research partnership of 15 centres working with many partners for a food secure future. ILRI has two main campuses in East50

New Partnership for Africa’s Development (NEPAD) Business Foundation (NBF) The NBF is one of Africa's leading membership based foundations which promotes sustainable economic and social development on the continent. It is a non-profit company that mobilises private sec-

Organisers tor support for the implementation of NEPAD goals. The NBF views business in Africa as a fundamental building block for positioning the continent as a key player for international trade and investment. As a neutral and trusted partner, the NBF provides a networking platform for its members to discuss, debate, share ideas and collaborate with the public sector and other stakeholders in investment, project or commercial activities. The NBF currently has offices in South Africa and Mozambique with a much wider geographical footprint in the rest of Africa in terms of strategic stakeholders and managed projects. The NBF plans to expand its physical representation to a further five countries in order to better serve stakeholders. http://nepadbusinessfoundation.org

Network of Farmers’ and Agricultural Producers’ Organisations of West Africa (ROPPA) ROPPA was formally established in July 2000 at a meeting in Cotonou which gathered 100 farmer representatives mandated by their respective organisations. It includes organisations or ‘consultation frameworks’ from 10 countries in West Africa (Benin, Burkina Faso, Côte d'Ivoire, Gambia, Guinea, Guinea-Bissau, Mali, Niger, Senegal and Togo). This list is not exclusive and their goal in the medium term, is to host farmers' organisations of all countries that are members of the Economic Community of West African States. www.roppa.info

Pan-African Farmers' Organization (PAFO) In response to globalisation and the serious threat to agricultural production in Africa because of Economic Partnership Agreements, African farmers' organisations felt the need to come together at the sub-regional level to better position themselves and establish effective regional frameworks to meet the challenges of regional integration and trade liberalisation. Regional organisations engaged in a battle to save family farms and fight for the interests of millions of small-scale farmers began to form national platforms in more than 30 countries. Since 2003, sub-regional networks of farmers’ organisations and agricultural producers have been working on issues that affect African agriculture. In 2008, regional networks from the five major economic regions of Africa met in Addis Ababa to create a platform to unite their efforts and harmonise their concerns. These consultations resulted in the Addis Ababa Declaration and the creation of PAFO. http://pafo-africa.org

Rural Finance Knowledge Management Partnership (KMP) KMP is an IFAD grant-funded regional programme that is focusing on rural finance. The main tenet of implementation is knowledge management support to IFAD programmes. To have greater influence on rural finance policy development, KMP partners with better-resourced agencies, such as the Alliance for a Green Revolution in Africa, which shares IFAD/KMP’s objective of promoting the development of rural finance through more effective innovation, dissemination and adoption of knowledge. KMP is partnering with The Regional Universities Forum for Capacity Building in Agriculture to undertake community based and specialised action-based research with its network of 30 universities. http://www.ifadafrica.org

Southern African Confederation of Agricultural Unions (SACAU) SACAU is a regional farmers’ organisation that was established in 1992. Membership is open to national farmers’ unions and regional commodity associations in Southern Africa. It is involved in agricultural development in the region by strengthening the capacities of farmers’ organisations, by providing a collective voice for farmers on regional and international matters, and by providing agriculture related information to its members and other stakeholders. SACAU’s vision is to help develop a vibrant, prosperous and sustainable farming sector that ensures food security and contributes to economic growth in Southern Africa. Their aim is to be the main voice of farmers on regional, continental and global matters, and to promote and ensure strong and effective farmers/producers’ organisations in all countries in Southern Africa. www.sacau.org

Syngenta Foundation for Sustainable Agriculture (SFSA) SFSA’s mission is to create value for resource-poor small-scale farmers in developing countries through innovation in sustainable agriculture and the activation of value chains. Their operational strategy focuses on smallholders, productivity, and markets. The Foundation works with partners in developing countries and emerging markets to help small-scale farmers become more professional growers. SFSA does this by extending science-based know-how, facilitating access to quality inputs, and linking smallholders to markets in profitable ways. This adds value for rural communities, and sustainably improves food security. Agricultural extension projects are complimented by a portfolio of partnerships in advanced crop science. The Foundation additionally works to 51

Organisers

create ‘enabling conditions’ in the form of improved regulatory frameworks, stewardship capacity, financial, and risk transfer tools, biodiversity conservation, and land improvement funded by carbon finance. It also conducts policy studies and outreach in a growing range of domains. www.syngentafoundation.org

The African Export Import Bank (Afreximbank) Afreximbank was established in Abuja, Nigeria in 1993 by African governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing, promoting and expanding intra-African and extraAfrican trade. The Bank was established under an Agreement signed by member states and multilateral organisations, which provided the Bank with the status of being an international multilateral organisation, and a Charter, governing its corporate structure and operations. The authorised share capital of the Bank is US$5 billion. Afreximbank’s vision is to be the trade finance bank for Africa. The Bank aims to stimulate a consistent expansion, diversification and development of African trade while operating as a first class, profit-oriented, socially responsible financial institution and a centre of excellence in African trade matters. The Bank, headquartered in Egypt, has branch offices in Nigeria and Zimbabwe. http://afreximbank.com

The Caribbean Farmers Network Inc (CaFAN) CaFAN is a legally registered non-profit, non-governmental regional farmer’ organisation. CaFAN was formed and initiated by farmer organisations across the Caribbean in 2002. Its mission is “to enhance Caribbean food and nutrition security, foreign exchange earnings and foreign savings, by repositioning agriculture through the capacity building of farmers and the institutional strengthening of farmers’ organisations”. CaFAN represents over 500,000 small farmers spread across 15 Caribbean countries. CaFAN member farmers’ organisations are directly involved in production and marketing for domestic, regional and extra regional markets. They are also involved in farmer training, promotion of nutritional Caribbean foods, market access, agro-processing and value addition, testing of agronomic practices and organic farming. CaFAN also focuses on market led sustainable mechanisms and structures, working in collaboration with all stakeholders in the agriculture sector to the strategic advantage of its farmers. http://www.caribbeanfarmers.org

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The Foundation for World Agriculture and Rurality (FARM) Based in Paris, FARM promotes productive and sustainable agriculture and agricultural value chains in the South, to stimulate economic development and social inclusion. It encourages the emergence of competitive and resilient family farms, able to meet the rising food demand, through appropriate public policies and the involvement of private stakeholders. FARM contributes to moving debates forward through studies, publications and conferences, and supports innovative pilot projects, designed in partnership with local producer organisations. http://www.fondation-farm.org

The Initiative for Smallholder Finance The Initiative for Smallholder Finance is a multi-donor effort designed to demonstrate how specific products and services can expand the reach of financing for smallholder farmers. Initiative activities include targeted market research, product development and testing, and investment facilitation in the smallholder finance market. Sponsors of the Initiative include the Citi Foundation, Ford Foundation, KFW Development Bank, MasterCard Foundation, Skoll Foundation, and USAID. The Aspen Network of Development Entrepreneurs, Business Action for Africa, Business Fights Poverty, CGAP, Root Capital, and TechnoServe provide advisory support. The Initiative has three primary functions: to conduct research, to facilitate communications among market participants in different parts of the agri-finance supply chain, and to broker investment opportunities between market participants. In carrying out these activities, the Initiative aims to demonstrate how specific models and products can expand the reach of bank financing for smallholders. http://www.globaldevincubator.org/initiative-incubator/currentinitiatives/initiative-for-smallholder-finance

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Practical Information Quick References Venue Kenya School of Monetary Studies (KSMS) Noordin Road, off Thika Road, Ruaraka next to Thomas de la Rue security Nairobi, Kenia Tel: (+254) 20 8561177 E-mail: info@ksms.or.ke Website: www.ksms.or.ke

Twitter Use #fin4ag14 to follow and tweet about the conference.

Internet Access Wireless access is available in the conference areas.

Mobile App Information and Registration Desk Please register at the registration desk at the entrance of the conference facilities. The registration and information desk opening hours are as follows: • Sunday, July 13, 2014 from 12:00 – 17:30 • Monday, July 14, 2014 from 07:00 – 17:30 • Tuesday, July 15, 2014 from 07:00 – 17:30 • Wednesday, July 16, 2014 from 07:30 – 17:30 • Thursday, July 17, 2014 from 07:30 – 17:30 • Friday, July 18, 2014 from 07:30 – 17:30* *Information Desk Only

For those participating in events prior to the start of the conference: the Continental Briefing (13-14 July); the ICT4Ag Hackathon Follow-up workshop (11-12 July); and for the social reporters (12 July onwards) a registration desk will be set up in front of the meeting room, 1 hour prior to the start of the event.

Download the fin4ag app (http://fin4ag.quickmobile.mobi) on your smartphone for real time access to all information and communications on the conference.

Message Board Check the message board located in the conference area for last minute changes and announcements.

Conference Shuttle Services Transportation between the hotels (see page 55) and conference centre will be provided by the organizers. Information on the shuttle service is available at the information desk.

Field Trips Reserve one of the few places left for the field trips at the registration desk.

Conference Office (Secretariat) +254700345007

Exhibition An exhibition will be running in parallel to the conference in the exhibition tent.

Opening hours: • Tuesday, July 15, 2014 from 08:30 – 18:15 • Wednesday, July 16, 2014 from 08:30 – 18:15 • Thursday, July 17, 2014 from 08:30 – 18:15

Emergency Numbers Nairobi police: 999 Accident: 2999 Fire: 299 Medical: 5999 For more numbers please access this link: http://dcs.unon.org/index.php?option=com_content&view=article&id=139&Itemid=191&lang=en

Lunch and Dinner Lunch will be provided at KSMS to all participants, throughout the duration of the conference. All participants will be invited to the welcome cocktail and the Kenyan cultural evening at the Safari Park Hotel (15 July) and to the cocktail and prize giving ceremony (17 July).

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Practical Information Floor Plan Kenya School of Monetary Studies (KSMS) Conference Area

ROOMS

USE

Ndovu Simba Chui Press office TV studio Meeting room Secretariat Social reporting Kifaru Twiga Kiboko Lunch tent Exhibition tent Registration tent Model Bank Library

Panel session / Plenary sessions / Daily highlights Press conferences / Continental Briefing / Break-out sessions ICT4Ag Hackathon follow-up workshop / Panel session / Break-out sessions Press office TV studio Side meetings, including ROPPA meeting Secretariat Social reporting Panel session / Break-out sessions Break-out sessions Break-out sessions Lunch breaks Exhibition & coffee breaks Registration & information desk Per Diems Media round table

54

Practical Information Google map of Nairobi

Hotels Sunstar Hotel • Roaster Hotel • Hilton Hotel • Kasarani Sportsview Hotel, • Oak Place Hotel • Utali Hotel • Meridian Hotel

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Practical Information 2nd African Continental Briefing Schedule Sunday, 13 July REGISTRATION

12:00 - 17:30

Continental Briefing: Sunday, 13 July

REGISTRATION

8:30 - 09:30

9:30 - 10:00

New impetus for VC finance & Successes in Farmer Business Models

Simba Objectives and Programme + Introductory remarks

10:00 - 11:30

CB-Session 1: Setting the scene: New environment for value chain finance

11:30 - 13:00

CB-Session 2: Successes from farmer’s organisations

13:00 - 14:15

Lunch Break Simba

14:15 - 18:00

CB-Session 2: Successes from farmer’s organisations (continued)

Continental Briefing: Monday, 14 July

Building agricultural finance from the farmers needs and role of farmer organisations

Simba 09:00 - 10:30

CB-Session 3: Finance at the bottom of the pyramid

Coffee Break

10:30 - 11:00 Simba 11:00 - 13:00

CB-Session 4: Building Data Collection as a Farmer Organisation Service

Lunch Break

13:00 - 14:15 Simba 14:15 - 16:00

CB-Session 5: How can FOs do business with Farmers and Action Plan for increased access to finance Concluding remarks

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Practical Information Plug & Play Day Schedule Monday, 14 July REGISTRATION

7:00 - 17:30

Plug and Play Day: Monday, 14 July REGISTRATION

7:30 - 08:45

Ndovu OPENING SESSION

8:45 - 09:45

9:45 - 10:30 10:30 - 11:15

Booth Chui 1

Booth Kifaru2

Booth Twiga3

Booth Kiboko4

Tangaza Pesa

Mendeley

iCOW

Esoko

Farmer Management System

e-Krishok

Creditinfo’s Credit Bureau Solution

Musoni System

Coffee Break

11:15 - 11:30 Booth Chui 5

Booth Kifaru6

Booth Twiga7

Booth Kiboko8

11:30 - 12:15

Farmforce

Credit Information Sharing (CIS) system

Umati Capital

Agrilife Platform

12:15 - 13:00

UWINCorp

Agrocentral

aWhere Platform

RiMFin

Chui 1 Booth

Kifaru2 Booth

Twiga3 Booth

Kiboko4 Booth

14:00 - 14:45

Farmer Management System

Agrocentral

FarmDrive

Musoni System

14:45 - 15:30

Farmforce

Umati Capital

aWhere Platform

Zoona eVouchers

15:30 - 16:15

Tangaza Pesa

e-Krishok

Credit Information Sharing (CIS) system

RiMFin

16:15 - 17:00

UWINCorp

Ensibuuko

Creditinfo’s Credit Bureau Solution

Agrilife Platform 2

Lunch Break

13:00 - 14:00

17:00 - 17:15

Coffee Break Discussions and conclusions Ndovu

17:15 - 18:15

Session [S34] ICTs – where do the biggest opportunities for finance lie? (S.O. CTA)

Chui

Kifaru

Session [S33] What lessons on ICT introduction have been learnt by Kenyan banks?

Session [S35] How can one strategically integrate new financing technologies into a bank’s value propositions?

(S.O. CTA)

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Practical Information Conference Schedule Day 1: Tuesday, 15 July 7:00 - 17:30

REGISTRATION Auditorium OPENING CEREMONY + KEYNOTE

8:45 - 10:30 10:30 - 11:00

11:00 - 12:30

Coffee Break Ndovu

Simba

Session [S1] Best practices in agri-value chain finance

Press conference

(S.O. CTA)

Chui

Kifaru

Twiga

Session [S40] Session [S53] Session [S24] Leveraging ICTs for Supporting young Developing innovative agricultural entrepreneurs to agri-lending products finance: learning from engage in ICT4Ag and climate insurance the Plug and Play Day business: outcomes of to build climate(S.O. CTA) the 2013 ICT4Ag resilient agriculture (S.O. CTA) hackathon (S.O. CTA)

12:30 - 14:00

14:00 - 15:30

Lunch break Ndovu

Simba

Chui

Session [S11] Financing intra-African food trade

Session [S30] Agriculture and price stability

Session [S5] Testing innovations in livestock and dairy value chain finance: insights from Eastern and Southern Africa

(S.O. CBK)

(S.O. AFRACA)

Kifaru

(S.O. ILR)

15:30 - 16:00

16:00 - 17:30

Session [S48] Session [S42] The West African Managing price farmers’ challenge: and weather risks how can the private to enable agriculsector intermediate tural finance (S.O. FAO) between farmers and banks?

(S.O. ROPPA/CTA)

58

Session [S9] Agricultural lending for micro-finance institutions: the Kenyan experience (S.O. AMFI)

Ndovu

Simba

Chui

Kifaru

Twiga

Kiboko

Session [S31] Central bank interventions in agriculture

Session [S45] Economic landscape of agricultural digital finance

Session [S23] Pan-African collateral management (S.O. CTA) (S.O. CTA)

Session [S43] Managing production and marketing risks to enable agricultural finance

Session [S13] Case studies in micro-finance institution lending to agriculture

(S.O. CTA)

Session [S48] The West African farmers’ challenge: how can the private sector intermediate between farmers and banks?

(S.O. ROPPA/CTA)

(S.O. FAO)

Networking, Free time, etc.

Safari Park Hotel

18:30 - 22:30

Kiboko

Coffee Break

(S.O. CBK)

17:30 - 18:30

Twiga

Cocktail + Kenyan cultural Evening

(S.O. CTA)

Practical Information Conference Schedule Day 2: Wednesday, 16 July 7:30 - 17:30

8:45 - 10:30

REGISTRATION

Ndovu

Simba

Chui

Kifaru

Twiga

Session [S4] Development and regulatory issues of capital market instruments for agriculture: what can we learn from Brazil and other countries?

Risk management tools for agricultural finance

Session [S46] Three agricultural digital finance platforms

Session [S36] Women in agri-value chain finance: tips for success!

(S.O. CTA)

(S.O. CTA)

Session [S49] The East African farmers’ challenge: establishing farmers’ agricultural banks at the country or regional level in Eastern Africa: prospects and practical steps ahead

(S.O. CTA)

(S.O. CTA)

(S.O. EAFF/CTA)

Coffee break

10:30 - 11:00

11:00 - 12:30

Ndovu

Simba

Chui

Session [S29] Central bank forum: agriculture’s significance for the financial inclusion and stability agenda

Session [S17] Warehousing and collateral management systems to promote access to finance

Session [S21] Building a successful agri-value chain financing

(S.O. CBK)

(S.O. AFD/IFAD/CTA)

(S.O. FAO)

Kifaru

Twiga

Kiboko

Session [S37] Session [S49] Session [S44] Capacity-building: The East African Applying what is missing in farmers’ human-centred agri-value chain challenge: design finance training establishing to smallholder and how to fill the farmers’ agriculagricultural gaps? tural banks at the finance (S.O. KMP) country or regional (S.O. ISF) level in Eastern Africa: prospects and practical steps ahead (S.O. EAFF/CTA)

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Practical Information 12:30 - 14:00

Lunch Break Ndovu

14:00 - 15:30

Simba

Chui

Kifaru

Session [S26] Session [S22] Session [S10] Session [S38] Reinvigorating policy Adopting an agri-value Support mechanisms Information, processes in support chain financing to agri-value chain communication and of a radical new strategy in a finance knowledge agri-value chain micro-finance management in value (S.O. FAO) financing agenda institution chain financing: lessons learnt (S.O. CTA) (S.O. BASIX)

Twiga Session [S51] The Caribbean farmers' challenge: factoring for farmers (S.O. IICA/CTA)

(S.O. KMP)

15:30 - 16:00

Coffee break Ndovu

16:00 - 17:30

Simba

Chui

Kifaru

Session [S14] Session [S18] Session [S39] Session [S52] Session [S6] Public-private The ins and outs of Increasing access to Lifting barriers to the Experiences in interventions to successful warehouse finance for young development of financing horticultural promote agri-value receipt finance agro-entrepreneurs: agricultural insurance exports (S.O. CTA) (S.O. FARM) (S.O. COLEACP/CTA) chains finance and innovative models better agricultural risk and replication issues (S.O. CTA) management mechanisms: lessons learnt (S.O. FAO)

17:30 - 18:30

Networking, Free time, etc.

Kenyan School of Monetary Studies (KSMS)

18:30 - 22:30

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Twiga

Cocktail + Gala Dinner (by invitation only)

Practical Information Conference Schedule Day 3: Thursday, 17 July 7:30 - 17:30

08:45 - 10:30

REGISTRATION

Ndovu

Simba

Chui

Kifaru

Twiga

Session [S32] Creating critical mass in warehouse receipt finance – discussion panel

Session [S27] Agricultural investment funds

Session [S25] Progress of African commodity exchanges

(S.O. FAO)

(S.O. FAO)

Session [S16] The role of technical assistance in lending products for smallholder agriculture

Session [S50] The Southern African farmers’ challenge: climate finance for agriculture

(S.O. CTA)

(S.O. SYNGENTA FOUNDATION)

10:30 - 11:00

11:00 - 12:30

(S.O. SACAU/CTA)

Coffee break Ndovu

Simba

Chui

Kifaru

Twiga

Session [S15] Guarantee schemes: experiences and lessons learnt

Session [S3] Crowd funding for ACP agriculture: initiatives, challenges and perspectives

Session [S47] Agricultural digital finance: more than payments

Session [S7] New strategies for financing agricultural mechanisation

(S.O. CTA)

(S.O. FMARD/AFRACA)

Session [S50] The Southern African farmers’ challenge: climate finance for agriculture

(S.O. CTA)

(S.O. CTA)

(S.O. FAO)

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Practical Information

â‚Ź Lunch Break

12:30 - 14:00

14:00 - 15:30

Ndovu

Simba

Chui

Kifaru

Session [S28] Positioning farmers’ organisations in agri-value chain finance: debate

Press conference

Session [S54] Weather risk management and agricultural finance

Session [S2] Experiences in financing fishing and fish farming

(S.O. CTA)

(S.O. CTA)

(S.O. CTA)

15:30 - 16:00

Coffee Break Ndovu

16:00 - 17:30

Closing ceremony + keynote speakers

17:30 - 18:30

Networking, Free time, etc.

Kenyan School of Monetary Studies (KSMS)

18:30 - 22:30

Cocktail + Prize giving ceremony of the YoBloCo Awards

Friday, 8 July 7:00 - 17:30

REGISTRATION

Nairobi National Park 6:00 - 8:00

Safari

8:00 - 9:00

Breakfast

Start 9:00

Fields trips

Color Key Revolutionising finance for agricultural value chains: the tools Policy development Cross-cutting Issues

Ceremonies Continental briefing sessions and press conference Digital Platform presentations (Plug and Play day) Field trips

62

The magazine for agricultural and rural development in ACP countries

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Get the ‘Fin4Ag Special Report’ in Spore October 2014

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