What we do
aBi Finance Limited provides Lines of Credit (LoCs) to Financial Institutions for on-lending to agribusinesses across the entire value chain. aBi Finance Limited also runs an Agriculture Loan Guarantee Scheme (ALGs) for Financial Institutions to share losses incurred through defaulting loans. As at December 2017, aBi's financial products generated over 231 thousand new loans to producers and businesses.
Under the Financial Services Development (FSD) Programme, aBi Finance Limited provides matching grants to FIs to build institutional capacity for enhancing the provision of financial services and increase outreach in rural areas. As at December 2017 about USh 17bn in grants was disbursed to 44 FIs.
During the 2019-2023 Business Plan period, aBi Finance will substantially expand its LoC and ALG components. This will be done by expanding the capital fund from which these components are financed and indemnified, and by increasing the share of the capital fund that is dedicated to the LoC component from 70% to 74%.
The LoC product shall be increasingly focussed on Tier III and Tier IV organisations. This will cause loan sizes to remain relatively low, although expected to grow over time to around USh3.5 million per outlay. In addition, aBi will promote ways and means to make the FI loan products more attractive for medium-term financing.