Agricultural Lending
Agricultural Lending
Given the scarce access to financial services among the rural poor and the importance of agriculture as a critical livelihood activity, agricultural finance is a key focus area for AKAM.
Several of AKAM’s affiliate institutions, particularly in sub-Saharan Africa, the Middle East and South Asia, have significant rural outreach and agriculture portfolios, but the unmet demand is still vast.
In each country, AKAM-affiliated entities collaborate with other AKDN agencies to help increase farmers’ yield.
Burkina Faso's economy depends heavily on agriculture, forestry and livestock farming, accounting for about a third of economic output and employing more than 80 percent of the workforce.
Première Agence de Microfinance Burkina Faso (PAMF-B) is one of the top three mid-sized players in the microfinance sector in terms of number of clients, loan values, disbursements and savings portfolio. While 87 percent of its clients are in rural areas and use livestock and agricultural loans, PAMF-B has opened branches in urban areas to serve trade and small enterprises in order to balance its portfolio and expand its range of clients. About 26 percent of borrowers and depositors are women.
PAMF-B has traditionally been strong in the agriculture sector. The group loan product helps rural clients pay for input materials and proposes adapted repayment conditions at the end of the harvest or sales. This facility is used repeatedly by clients and has created a loyal customer base. The system works based on a social rather than financial guarantee, with each individual co-responsible for the loan.
PAMF-B's financial services help small farmers in rural areas with agriculture-specific products, focusing on rice, cassava, maize and livestock. It is part of a group selected by the government to participate in a national programme to boost the agriculture sector.