Expanding Financial Access in Agriculture Through Agent Networks

NIRSAL: A Game Changer The integration is driven by NIRSAL's 5 pillars, particularly the Risk Sharing and the Technical Assistance pillars . . . 1 Risk Funds are applied along the 5 pillars of NIRSAL to stimulate lending Sharing Facility $300M 2 Insurance Facility $30M 3 Technical Assistance Facility $60M 4 Agricultural Bank Rating Scheme$10M 5 Bank Incentive Mechanism $100M ■ Shares lending risks with banks (e.g. 50% of any loss incurred) Links insurance products to the loan provided by banks to loan bene- ficiaries Builds the capacity of banks, micro- finance institutions ■ Builds the capacity of agricultural value chains ■ Expands financial inclusion ■ Rates banks according to effective- ness of their lending to agriculture. ■ Rates AVC Actors According to Financial, Agribusiness Growth, Tech. Adopt Performance Provides incentives that: move banks to a long term, strategic position and commitment to agricultural lending Reward Performances by AVC Actors Goal Expand bank lending in agricultural value chains GOAL NIRSAL Objective De-risk agriculture finance value chain Build long-term capacity Institutionalise incentives for agriculture lending & AVC Performance NIRSAL

View entire presentation