- Expansion of Financial Services for rural areas
- Building staff capacity of Financial Institutions
- Investing in new branch outlets for Financial Institutions
- Introducing Financial Management Information Systems
- Business Development Services
- Mobile Banking
Financial Services Development
Financial Services Development (FSD) targets to supports activities which aim at increasing access to financial services to Value Chain actors. The FSD’s immediate objective is to increase availability and usage of financial services through wider and deeper delivery mechanisms. It aims at achieving (among others) the following outputs:
Identification of rural agribusiness loan opportunities and expansion of branches and branchless delivery mechanisms, such as rural branch setup and mobile banking for improved financial services delivery:
- Identification of agribusiness borrowers, assisting qualified borrowers to prepare bankable proposals for lender appraisal and facilitating linkages to financial institutions. aBi Trust works with contracted Business Development Services (BDS) providers to achieve this.
- Support financial literacy activities to address the demand challenges focused by the financial institutions.
- Providing cost share grants to expand financial services into underserved areas around the selected aBi Trust Supported value chain’s geographical operations
Improvement of financier skills and products for financing agribusiness:
- Providing FIs broad consultancy support for product development and strategic development for realignment of Agribusiness in their loan portfolio.
- Providing expertise to interested FIs on a competitive challenge grant basis for knowledge transfer.
- Training Financial Institutions’ (FIs) credit divisions in critical value-chain analysis, which may include building both basic credit skills of branch-level officers and their capacity to analyse value chain finance needs.
- Providing TA support for the integration of developed products.
Increase in the volume of agribusiness finance through facilitating greater liquidity, guarantees, and risk management innovations:
- Bridging the gaps of FIs to enable them access lines of credit from aBi Finance Ltd.
- Supporting savings mobilisation campaigns.
- Supporting development of risk management instruments like insurance, promoting use of guarantees to increase lending for agribusiness.