Micro, small and medium-sized agricultural enterprises are fundamental to agrifood systems in Latin America and the Caribbean, as well as East Africa. However, they face significant barriers to accessing finance, as private investors perceive high risks and transaction costs.
To close this gap, it is essential to design innovative incentive models that mobilize private capital and strengthen investment in small producers, women entrepreneurs and rural youth, key actors in food security and sustainable development. In that regard, Public Development Banks play a strategic role in agricultural sector finance, providing nearly two-thirds of formal agricultural credit globally. Thanks to their mandate to correct market failures and their higher risk tolerance compared to other financial institutions, BPDs can mobilize private capital and facilitate investments in areas where the private sector traditionally does not participate.
Co-organised by the International Fund for Agricultural Development, the SAFIN Network , and the Latin American Association of Development Financing Institutions. This webinar in Spanish language explored innovative incentive models to mobilize financing for micro, small and medium-sized enterprises (MSMEs) in different agricultural sectors in Latin America and East Africa. Through the analysis of these models, leading experts from IFAD, ACELI, the Instituted Trusts in Relation to Agriculture (FIRA, Spanish acronym), Nuup, and Gawa Capital, provided key insights on the challenges and opportunities for public development banks in Latin America to reach MSMEs through similar approaches.
Watch the webinar replay in Spanish
