This post was originally published at PAEPARD and has been republished with permission.
Although leasing is a growing form of asset finance in African markets, its use in agriculture remains a nascent concept. Why is this the case? How could leasing help to bridge the finance gap in the sector and ultimately improve rural livelihoods? More specifically, what role can Development Finance Institutions (DFIs) play in expanding agricultural leasing in order to support much-needed growth in the African agriculture sector ?
Speakers included: Amalia Johnsson and Stewart Pirnie from Nathan Associates. The session was moderated by Mike De Klerk, Agricultural Development Specialist.
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REPORT | MARCH 2017 | 29 pages | FSD Africa, Nathan Associates
This scoping study (Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Tanzania, Uganda and Zambia) applies a market systems approach to agricultural equipment leasing in sub-Saharan Africa in order to capture a holistic view of how the leasing market currently works.
- Like many other financial sector challenges, there is no “one size fits all” solution to building a functioning agricultural leasing sector that is appropriate for and accessible to market players across the continent.
- However, through a market systems lens, the research helps to identify constraints within the core market (supply and demand), the market functions that support the sector and the policy and regulatory systems that govern the sector.
- Using this approach, the report maps the countries of scope and starts to pinpoint recommendations for developing the sector. The hope is that this market scoping can act as a starting block for development partners that may be interested in promoting growth within the agricultural leasing sector.
- The report provides useful country overviews and a summary as to how the countries of scope were chosen, in an effort to identify the right geographical focus for any development partner. The overarching recommendations can be used to best determine one’s entry point or focus, based on specific interests.