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RESOURCES SHARING FUNDING EVENTS
Explorer Rural and Agricultural Finance/Value Chain Finance
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Date Added: 09-06-2006
Date Modified: 08-06-2008
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Financial Services Resources: Institution
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Rural and Agricultural Finance / Value Chain Finance

Photo: A woman brings wild ginger to be weighed in Vohimana, Madagascar. Photo credit: M. Sassanpour, ACDI/VOCA
A woman brings wild ginger to be weighed in Vohimana, Madagascar. Photo: M. Sassanpour, ACDI/VOCA

Rural households continue to be underserved by financial institutions. Financial products and delivery mechanisms designed to service urban, commercial populations are often ill-suited to rural areas where cash needs and income flows are more seasonal in nature than in urban areas. Further, accessing financial services by these dispersed populations with limited access to public transport is more costly.

USAID supports efforts to better reach rural populations. Such efforts can take several forms: 1) rural finance, designing financial services and delivery channels to better reach rural households and enterprises; 2) value chain finance, financial products and delivery channels designed and delivered to support ongoing operations of value chains; and/or 3) agriculture finance, financial products and services specifically designed to finance the inputs and production of agricultural commodities. Because of the nature of rural households and their economic activities, these categories are not mutually exclusive.

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