FACT SHEET: CBMFIs as sustainable models in financing smallholder agriculture and livelihoods

The LFSP Rural Finance component designed to enhance access to finance to LFSP programme beneficiaries so that they would invest in productivity enhancing technologies to increase productivity, increase household incomes, invest in income generating activities and reduce poverty.
The design of tools used to roll out the component was informed by findings of a 2014 Rapid Market Survey. The survey established that:
– That MFIs needed appropriately structured credit lines to enable them to sufficiently service the rural clients.
– Microfinance Institutions and Commercial Banks required more information on the profile and needs of the Rural clientele
– Smallholder farmers and then existent supporting SMEs had limited knowledge of appropriate financial services provided by formal financial institutions.

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