Programme for Inclusive Agricultural Transformation (DEFIS)
RK-FINFA Rationale & Features
Project Rationale
Increasing unmet demand for rural & agriculture
finance and the core development objectives
shared by IFAD & the Gok on rural & agricultural
development;
➤ Effective transformation of rural sector could be
achieved through:
(i)
(ii)
a substantially increased private sector focus in
the development & investments of the sector;
improvements in the productivity of smallholder
operations through modern cultivation methods
& climate smart technologies, linking farmers to
well-operating value chains & building farmer
capacity to increase their readiness for
innovation and diversification.
RK-FINFA: one of the instruments aiming to ensure
that appropriate & adequate financial services
would be available for the planned transformation
& growth of the rural economy.
Theory of Change
Key Development Problem: Limited investment flow hinders
modernization and improved income flows in the smallholder and
agribusiness sectors, despite high development potential and
significant positive impacts on rural livelihoods and food systems
development, poverty reduction and climate change resilience
RK-FINFA Solutions: (i) Technical Support and Innovation Services
(TSIS) both to PFIs & their potential pipeline of clients; (ii) Rural
Credit Guarantee Scheme to help reduce risks, unlock private capital
flows, & to introduce rural outreach innovations; and (iii) Green
Financing Facility to provide liquidity to finance green investments of
rural MFBS & SACCOS.
JLIFAD FIDA
Expected Results: (i) Stronger rural financing support institutions; (ii)
Increased rural investments; (iii) employment creation; (iv) higher
rural incomes; and (v) gender equality in finance.View entire presentation