The Potential of Structured Finance to Foster Agricultural Lending in Developing Countries

Hartig, Peter; Jainzik, Michael; Pfeiffer, Klaus

doi:10.1007/978-3-642-54034-9_8

Cited by 2 publications

(2 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…How could they be adjusted not only to serve an agricultural entrepreneur but also to satisfy the financier? Hartig, Jainzik and Pfeiffer (2014) suggest that structured finance may be the way to go in agriculture. Structured finance refers to the advancement of funds to enterprises to finance inputs, production and the accompanying support operations using certain types of security that are not normally accepted by banks or investors and which are more dependent on the structure and performance of the transaction, rather than on the characteristics of the borrower.…”

Section: Studies On Why Financial Institutions Do Not Give Finance Tomentioning

confidence: 99%

Unfulfilled loan demand among Agro SMEs in Namibia

Amadhila

Ikhide

2016

S. Afr. j. econ. manag. sci.

View full text Add to dashboard Cite

Using a qualitative methodology approach, a case study research design by way of in-depth semi-structured interview(s) was followed to interview farmers, commercial banks, development banks, venture capitals and private equities to determine the financing options available for farmers and provide reasons why some financial institutions shy away from providing finance to agricultural enterprises. This study deviates from prior studies which have focused on small-scale farmers and subjected farmers' access to finance to rural credit markets, mostly informal money lenders using secondary information mostly from household surveys to build econometric models. The study indicates that only about 33 percent of formal financial institutions are providing finance to agricultural SMEs. The lack of expertise and perception of risk were cited as top reasons why formal financial institutions find it hard to provide finance to agricultural SMEs. Building on opinions from other authors cited in this paper, we maintain that new financing mechanisms can be achieved by all types of financial institutions through learning from experiences by other successful countries.

show abstract

Section: Studies On Why Financial Institutions Do Not Give Finance Tomentioning

confidence: 99%

Unfulfilled loan demand among Agro SMEs in Namibia

Amadhila

Ikhide

2016

S. Afr. j. econ. manag. sci.

View full text Add to dashboard Cite

show abstract

“…If the risk-bearing capacities of financial institutions are exhausted despite of the application of such measures an outplacement of risks can enable them to enlarge agricultural lending without exposing the institution to inadequate risk levels. For the role of agricultural insurance in developing countries seeHerbold (2013), for the potential role of structured finance seeHartig et al (2013), both in this volume. 44 Some services, like for instance payment services, might be better offered by nonbanks, like mobile telecommunications companies.…”

mentioning

confidence: 99%

Food Security and a Holistic Finance for Rural Markets

Köhn

Jainzik

2013

Finance for Food

Self Cite

View full text Add to dashboard Cite

Investments in agriculture, particularly in smallholder agriculture in developing countries, are regarded as critical for meeting the food demands of a growing world population. 3 Improvements in agricultural finance, mainly in providing investment credit to farmers, are widely regarded as an important approach to stimulate production. 4 While this is certainly true, it is only part of the story. Agriculture-related physical and market infrastructure have been widely neglected in the discussion despite their immense relevance for making food available in developing countries-and as a precondition for farmers to produce at all. In this chapter, we describe the investment and financing needs of every step in the food production and distribution chain: from farm to fork, from pasture to plate, or from barnyard to belly. Take your pick. 1 Commercialisation of Farming as an Opportunity The global economic framework for agricultural production has changed significantly in recent years. Most importantly, after decades of stagnating commodity prices, prices for agricultural produce, processed as well as non-processed, have significantly increased and are expected to increase further. Population growth and increased demand for high-value food products-particularly in the big emerging markets-are the underlying factors that indicate a continuing challenge. 5 This

show abstract

The Potential of Structured Finance to Foster Agricultural Lending in Developing Countries

Cited by 2 publications

References 10 publications

Unfulfilled loan demand among Agro SMEs in Namibia

Unfulfilled loan demand among Agro SMEs in Namibia

Food Security and a Holistic Finance for Rural Markets

Contact Info

Product

Resources

About