Promoting financing for agricultural businesses in rural areas of Burkina Faso

Context

In Burkina Faso, 80 per cent of the population work in the agricultural sector, but this only represents one third of the country’s economic production. The sector is dominated by small farmers who are largely focused on food self-sufficiency. This situation, combined with the lack of access to formal financial services for rural populations working in agriculture, has resulted in low investment and slow growth.

Poor knowledge of the sector and the general belief that the sector is risky and less profitable are among the factors that contribute to the reluctance of financial institutions to reach out to rural people working in agriculture.

The traditional financial system has very few products adapted to the needs and realities of agricultural actors. Banks have few branches in rural areas and generally see the expansion of their services in the agricultural sector as both risky and costly.

Objective

Access of rural farms and agri-based enterprises to financial services adapted to their business models is improving.

Approach

The project approach aims to improve access to financial services adapted to business models, farms and agri-based enterprises in rural areas of the country. The project has three areas of action:

• Adapting analytical tools and training materials to improve the economic and financial expertise of people running farms and in agri-based enterprises, as well as the agricultural know-how of financial partner institutions.
• Improving the skills of smallholder farmers, farmers' associations, and in agri-based enterprises.
• Supporting selected financial institutions in providing demand-driven financial services to actors in agricultural value chains.

Last update: October 2023