Small-scale farmers lack access to finance to grow their business and improve productivity. Banks are reluctant to lend working capital to them as they usually lack a credit history. The challenge is to demonstrate to banks that working capital loans to emergent farmers can be profitable and secure, and can help farmers develop a credit history to facilitate future financing.
NWK, a leading Zambian agri-business, provides inputs on credit financed by AgDevCo to the Agropreneur through retail shops in addition to offering a guaranteed market for crops. When the farmer sells his or her crop to NWK, the outstanding balance is cleared. Default risks are reduced through extension, farmer monitoring and crop insurance. Due to input financing from AgDevCo alongside asset financing from 3rd party lenders, the Agropreneurs programme grew dramatically in 2015. 91 Agropreneurs received finance from AgDevCo in the 2015/16 season.