Double the Growth: $716m in Credit to Agri-SMEs
26 July 2018
CSAF's State of the Sector report, released this week, highlights the continued expansion of the financial market serving small- and medium-sized agricultural enterprises. It also found that obstacles remain for socially responsible investors aiming to allocate capital "at the scale required to meet demand." According to MIX analysis, conducted as CSAF's data partner, overall lending from member institutions grew slightly, though at a significantly slower rate than in previous years. At the same time, credit quality declined and risk remained high relative to lending in other sectors. MIX analysis of lending data from CSAF members - which include AgDevCo, responsAbility and Root Capital, among others - found a significant increase in lending in cocoa and cashew nuts, much of it concentrated in sub-Saharan Africa.
MIX's efforts in agricultural finance go far beyond data analytics, and we continue to engage with CSAF members to standardize key metrics and industry terminology across lenders, especially those related to portfolio performance, financial products and commodity types. The State of the Sector report also announces CSAF's collaboration with MIX to develop an online and publicly accessible platform where users can track trends and create customized reports. As part of this initiative, CSAF plans to invite other financial institutions serving agricultural SMEs to contribute data on their annual lending activity so the platform represents a growing cross-section of the agricultural SME finance market. The platform is expected to launch in early 2019.
To learn more or read the full State of the Sector report, please visit the CSAF website.