MIFA aim is to generate decent and massive jobs for young people and women and business opportunities for SMEs / SMIs

First, the 5 pillars. Number one, risk sharing. It is about reducing the exposure of the actors to the risks by sharing them along the chains of value.

Number two, insurance. In this area, MIFA plans to develop insurance products to cover the sector actors as well as agricultural risks and financing.

Number three, technical assistance. It is a question of strengthening the technical capacities of financial institutions for a better analysis of the sector with a view to developing adapted products, strengthening the technical and management capacities of agricultural value chain actors and extending financial inclusion.

Number  four, the interest rate bonus. This will involve pricing lenders based on the effectiveness of agricultural lending and pricing value chain actors based on financial growth, agribusiness growth, and the use of best practices of production techniques.

Number five, the incentives. They aim to get lenders to adopt long-term strategies, to make a long-term commitment to financing agriculture and to prioritize value creation by actors in the agricultural value chains.

Then, the 5 expected impacts

Firstly, it will support 1 million producers by 2020 through mechanisms of professionalization of value chains and pooling of DFS and agricultural cooperatives (direct and indirect jobs).

Secundly, it aims at increasing the volume of loans to the agricultural sector from 0.2 to 5% of the total portfolio of bank loans by 2028.

Thirdly, reduce the bank's break-even interest rate for borrowers by 15% to between 7.5 and 10.5%.

Fouthly, the aim is to facilitate the granting of agricultural loans within banks by improving their capacity to analyze agricultural projects through the establishment of specialized agricultural offices in banks whose MIFA will build capacity techniques.

Fively, intensify lending to small farmers "pooled" to 50% of the total portfolio through aggregated mediators, such as decentralized financial systems and cooperatives.

At the end, MIFA S.A aims over the next 10 years to bring to 5% the contribution of banks to financing agriculture previously too low (0.3%).

To succeed this bet, the mechanism unites all the actors including the State, the research centers, the distributors of inputs, the producers, the units of transformation and structures of insurance, banking and decentralized finance.

The aim is to generate decent and massive jobs for young people and women and business opportunities for SMEs / SMIs. And the private sector will play a big role in achieving these results.

Votre avis