Why you can expect to see repayment of your loan

Why you can expect to see repayment of your loan
February 25th 2021 by Prince Boateng

“Microfinance recognizes that poor people are remarkable reservoirs of energy and knowledge. And while the lack of financial services is a sign of poverty, today it is also understood as an untapped opportunity to create markets, bring people in from the margins and give them the tools with which to help themselves.” -Kofi Annan
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Lowering Barriers to Credit with Psychometric Assessments

Lowering Barriers to Credit with Psychometric Assessments
February 4th 2021 by Michael Hickey

A 2015 FAO fact sheet stated that "low levels of investment in agriculture" in Ghana was partly due to "a lack of technical knowledge on risk assessment and management." Most people in Ghana, especially rural smallholder farmers, do not have a credit history. Without a credit history to look at, lenders are less able to assess lending risk. However, AgroFides sees the potential for psychometric methods to fill this information asymmetry.
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Environmental Impacts of Fertilizer use in Food Production

Environmental Impacts of Fertilizer use in Food Production
January 18th 2021 by Acheampong Atta-Boateng

Agriculture is one of the top contributors of greenhouse gases, making up 24% of global greenhouse gas emissions in 2014 (FAO, 2014). This significant level of emissions is not slated to decrease anytime soon, as it is projected that the global population will grow to 9.7 billion by 2050, and demand for agricultural production will likely increase accordingly. These additional 2 billion mouths to feed pose not just a threat of increased greenhouse gas emissions, but also a risk of widespread food insecurity and hunger.
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Opportunities to Promote Gender Equity in Smallholder Farming

Opportunities to Promote Gender Equity in Smallholder Farming
November 2nd 2020 by Prince Boateng

Though female farmers make up a significant portion of farmers globally, they often face barriers that make it substantially more difficult for them to succeed. For one, female farmers are less likely to own the land that they farm on, which makes it more difficult for them to secure loans for investment in their farms. This insecurity of land ownership not only impacts the ability to secure credit, but also makes female farmers less likely to adopt new technologies because of the uncertainty in long-term investment. Female farmers are also often pushed out of planting cash crops, which are seen as more economically productive. Female farmers are less likely to plant cash crops, such as cocoa or oil palms, and have been found to more heavily favor subsistence crops, such as peppers or tomatoes, which are less often considered eligible for credit. Finally, women are often excluded from farmer’s cooperatives.
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Credit Risk Prevents Growth of Small-Medium Scale Farming in Africa

Credit Risk Prevents Growth of Small-Medium Scale Farming in Africa
October 16th 2020 by Acheampong Atta-Boateng

Small and medium scale farms contribute to 80% of the food consumed in Africa, yet these farmers often face the most difficulty receiving financial support. Unable to obtain loans, smallholder farms struggle to adopt new technology that could increase future yield, or even obtain the credit necessary to purchase enough supplies for the planting season ahead. As a result, these farms face lower crop yield than otherwise possible, making farming business less profitable.
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African Farmers & Credit: A Misaligned Relationship

African Farmers & Credit: A Misaligned Relationship
September 25th 2020 by Prince Boateng

A 2019 World Bank brief explains how global population growth, changing dietary preferences, and various climate risks all contribute to “an ever increasing need to invest in agriculture.” So much so that global demand for food is expected to increase 70% by 2050, which will require at least $80 billion of imbursements annually, much of which will need to come from the private sector. However, the 2019 Rural and Agricultural Finance State of the Sector Report, a joint publication by the Mastercard Foundation Rural and Agricultural Finance Learning Lab and ISF Advisors, tells us that there is currently a gross amount of unmet smallholder finance demand.
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African Agriculture’s Untapped Potential: An Opportunity for Impactful Lending

African Agriculture’s Untapped Potential: An Opportunity for Impactful Lending
May 29th 2020 by Prince Boateng

AgroFides recognizes the immense opportunity currently presented to creditors to capitalize financially on the African continent; in the last decade, more than half of the world’s most rapidly expanding economies have been African. Moreover, the World Economic Forum predicts that by 2030, 43% of Africans will belong to the middle or upper classes, which will translate to a higher level of demand for goods and services (household consumption is expected to rise to $2.5 trillion), suggesting lucrative opportunities in African businesses for savers.
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