The Wholesale Microfinance Strategy Community Development Foundation Experience

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Post on 11-May-2015



Presentation Fin4Ag S13 by Akin Akintola


Slide 1

Wholesale Lending Strategy Community Development Foundation Experience

Presented by

Mr Akin AkintolaExecutive DirectorCommunity Development FoundationIn

Fin4: Revolutionising Finance for Agri-value Chains ConferenceAtKenya School of Monetary StudiesNairobi, Kenya

15 July 2014

IntroductionAgricultural Financing has always been a challenge despite various government interventions, policy support and in many cases, establishment of specialized institutionsIn Nigeria, there is a long history of efforts to meet the farmers credit needs and to support agricultural value chains. However most of the interventions have not achieved the desired objectives and in some cases, have failed woefully.

BackgroundBackground ContdThough well conceived most programs made little programmeSome programs were politicised and discontinued withMost of the institutions became weak and poorly fundedBanks circumvented policies and paid fine insteadWholesale Strategy -Target Groups Apex institutionsCredit UnionsCommunity based Enterprises (CBEs)Community Based Organisations (CBOs)Community Development Associations (CDAs)Large Cooperative societies

Wholesale strategyInstitutions exist locally for Financial IntermediationThese institutions form large Apexes to leverage their strength for greater access to funds and loans.Owned and managed by the beneficiaries Members have confidence in and are familiar with procedures of the institutionsCosts of loan administration are low when compared with lending to the individuals.If the formal banks and other financial institutions fail, these institution will serve.Apex institutions are registered providing formal coverage for the primary constituents.

Wholesale strategy

BenefitsChallenges9ConclusionThe wholesale microcredit strategy remains one of the effective ways of reaching the large underserved farming and rural populationIt promotes best practices in rural finance Strengthens Rural Financial Institutions.Addresses the issue of high costs of doing business in rural areas by banks and microfinance institutions.

AppreciationThanks for Listening

Community Development


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