For Savings and Credit Cooperative Organizations (SACCOs) deeply embedded in local communities, Agri-Finance and Rural Lending Models represent a critical pathway to foster economic growth, enhance food security, and improve the livelihoods of smallholder farmers and rural entrepreneurs. Traditional financial services often overlook the unique needs and risks associated with agricultural value chains, leaving a significant financing gap in rural areas. By developing specialized agri-finance products and tailored lending models, SACCOs can effectively address the cyclical nature of agricultural income, mitigate weather-related risks, and support investments in productivity-enhancing technologies for farmers. This strategic focus not only expands the SACCO's market reach but also directly contributes to national development goals related to agriculture and rural development, strengthening the cooperative's social mission. Without innovative approaches to Agri-Finance and Rural Lending Models, these vital institutions risk missing out on a substantial and impactful market segment, failing to adequately serve their rural members, and limiting their potential to drive inclusive economic growth, underscoring the vital need for specialized expertise in this critical domain.

Duration: 5 Days

Target Audience

• SACCO Managers and CEOs
• Credit Managers and Loan Officers
• Rural Branch Managers
• Product Development Teams
• Risk Managers (with focus on agricultural lending)
• Field Officers engaging with farmers
• Strategic Planners
• Board Members (with focus on rural development/agri-business)
• Member Services Professionals
• Agricultural Economists and Development Practitioners

Objectives

• Understand the unique characteristics and challenges of agri-finance and rural lending.
• Learn about various agricultural value chains and their financing needs.
• Acquire skills in designing and structuring relevant agri-finance products for SACCOs.
• Comprehend techniques for assessing and mitigating agricultural lending risks.
• Explore strategies for integrating technology and innovative approaches in rural lending.
• Understand the importance of farmer segmentation and tailored financial solutions.
• Gain insights into partnerships and collaborations for effective agri-finance delivery.
• Develop a practical understanding of building a sustainable and impactful agri-finance portfolio within a SACCO.

Course Content

Module 1: Introduction to Agri-Finance and Rural Economies

• The importance of agriculture and rural economies for national development.
• Definition of agri-finance: scope, challenges, and opportunities.
• The role of SACCOs in rural financial inclusion.
• Understanding the socio-economic context of rural communities and farmers.
• The concept of agricultural value chains.

Module 2: Understanding Agricultural Value Chains and Financing Needs

• Mapping different agricultural value chains (e.g., crop production, livestock, fisheries).
• Identifying financing needs at various stages of the value chain (inputs, production, post-harvest, processing, marketing).
• Seasonal finance and working capital requirements for farmers.
• Investment finance for agricultural assets and infrastructure.
• Gender considerations in agricultural finance.

Module 3: Designing Agri-Finance Products for SACCOs

• Tailoring loan products to agricultural cycles and cash flows.
• Flexible repayment schedules and grace periods.
• Group lending models for rural communities.
• Savings products for farmers: linking savings to loan access.
• Micro-insurance products for agricultural risks (e.g., crop, livestock insurance).

Module 4: Agricultural Lending Risk Assessment and Mitigation

• Unique risks in agricultural lending: weather, pests, market price volatility, disease.
• Credit risk assessment for farmers: cash flow analysis, repayment capacity, character.
• Collateral management in rural settings: non-traditional collateral, movable assets.
• Risk mitigation strategies: diversification, crop insurance, value chain financing.
• Early warning signs of default in agricultural loans.

Module 5: Rural Lending Models and Methodologies

• Group lending and solidarity groups: benefits and challenges.
• Individual lending to farmers: specific considerations.
• Value chain finance: financing actors along the agricultural value chain.
• Agent banking and mobile banking for rural outreach.
• The role of field officers in rural lending.

Module 6: Technology and Innovation in Agri-Finance

• Leveraging mobile technology for loan disbursement and collection in rural areas.
• Digital platforms for farmer registration and credit scoring.
• Precision agriculture technologies and their financing implications.
• Satellite imagery and remote sensing for crop monitoring and risk assessment.
• Data analytics for informed decision-making in agri-finance.

Module 7: Partnerships and Collaborations for Agri-Finance

• Collaborating with agricultural extension services for farmer capacity building.
• Partnerships with input suppliers, off-takers, and agro-processors.
• Working with government programs and agricultural development agencies.
• Blended finance approaches: combining commercial capital with concessional funding.
• The role of FinTechs and AgriTech companies in rural finance.

Module 8: Building a Sustainable Agri-Finance Portfolio

• Developing a robust agri-finance strategy for the SACCO.
• Performance indicators for agri-finance portfolios.
• Staff training and capacity building for agri-finance specialization.
• Monitoring and evaluation of agri-finance programs.
• Scaling up successful agri-finance models for broader impact.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.