agfims tanzania 2011 headline findings irma grundling 23 february 2012 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
AgFiMS Tanzania 2011 Headline Findings Irma Grundling 23 February 2012 PowerPoint Presentation
Download Presentation
AgFiMS Tanzania 2011 Headline Findings Irma Grundling 23 February 2012

Loading in 2 Seconds...

play fullscreen
1 / 50

AgFiMS Tanzania 2011 Headline Findings Irma Grundling 23 February 2012 - PowerPoint PPT Presentation


  • 102 Views
  • Uploaded on

AgFiMS Tanzania 2011 Headline Findings Irma Grundling 23 February 2012. Workshop objectives …. Share the headline findings of AgFiMS Tanzania 2011 Sounding board in terms of the interpretation, understand the findings better Way forward??. The problem ….

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

AgFiMS Tanzania 2011 Headline Findings Irma Grundling 23 February 2012


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
workshop objectives
Workshop objectives …
  • Share the headline findings of AgFiMS Tanzania 2011
  • Sounding board in terms of the interpretation, understand the findings better
  • Way forward??
the problem
The problem …
  • Smallholder & agri-business finance perceived as risky
  • There is lack of financial services suited for agriculture
  • Limited penetration of financial services into agri/rural areas
agfims objectives
AgFiMS objectives
  • The overall aim - A survey to:
    • Assess the need for financial services and support
    • Assess factors prohibiting access to financial services
    • Facilitate interventions to address the need
  • AgFiMS has two complementary components:
  • Demand side component
  • Supply side component
    • To quantify the degree and type of finance provision
objective
Objective

Land-size or turnover-based selection criteria applied

?

agfims tanzania 2011 sample
AgFiMS Tanzania 2011 sample
  • Representative sample of 626 EAs drawn by NBS
  • Listing & screening exercise provided the sampling frame
  • 4 094 face-to-face interviews were conducted with agribusiness owners
    • 3 734 interviews with producers
    • 104 interviews with processors
    • 256 interviews with service providers
  • The survey is representative at:
    • National, urban-rural, and agricultural zonal levels (including Zanzibar) for producers
    • National level for processors and service provide
agfims tanzania 2011
AgFiMS Tanzania 2011
  • +- 7m farming households
  • +- 5m households with farming as main income source
  • AgFiMS – 2 million agri-businesses
slide18
AgFiMS Tanzania 2011 Business EnvironmentIs the environment conducive for these entrepreneurs to achieve business success?
slide19

‘Ownership’ of land is a perception

  • for most producers

More than 90% producers claim land ownership although less than 10% have title deeds

most producers use more land than they own lack of capital affects productivity for 1 in 5
Most producers use more land than they ‘own’; Lack of capital affects productivity for 1 in 5
slide21
Lack of access to irrigation systems and reliance on natural water resources further inhibits productivity
slide22
Although the level of access to infrastructure is not conducive for business activities, mobile phone access provides connectivity
limitations in the business environment seems to result in distressed sales
Limitations in the business environment seems to result in distressed sales

Distressed sales?

12% sell on contract

10% sell all products on contract

slide26
Sound financial decision-making does not result in high levels of financial inclusion for agribusinesses
multiple financial strategies a matter of choice or no options
Multiple financial strategies – A matter of choice or no options?

Banked

Served by non-bank formal

and/or semi-formal institutions

43.5%

Informally served

Unserved (55.6%)

financial behaviour
Financial behaviour …

408 303

143 782

2 600

78 5 business owners save but most prefer to save at home rather than putting their money in a bank
78.5% business owners save but most prefer to save at home rather than putting their money in a bank
accessibility the key barrier to banking
Accessibility the key barrier to banking …. ?
  • “Banks are too far away” – 37% of the unbanked
  • “The business does not meet the requirements of the bank” – 26% of the unbanked
  • “Banks do not want to lend money to a business like mine”/
  • “banks are not interested in a business like mine” -
  • 16% of the unbanked
status quo credit
Status quo: Credit

Bank

SACCOs

MFIs

Informal

Friends/ family

4% business owners

7% business owners

27% business owners

14% business owners

68.9% of credit

11.7% of borrowers

12.2% of credit

21.3% of borrowers

15.1% of credit

79.3% of borrowers

3.8% of credit

40.2% of borrowers

financial needs capex operational expenditure business assurance
Financial needs ....‘Capex’, ‘operational expenditure’, ‘business assurance’
slide37

Agribusinesses have virtually no

coping mechanisms to rely on when faced with business risks

slide41

Relationship between

obstacles to growth & financial needs

key capacities for agri businesses
Key capacities for Agri-businesses

Top income category

Formal inclusion

  • Usage of financial services & products
  • Accessing credit
  • Access to/usage of credible financial advisory resources
  • Access to/usage of credible business advisory resources
  • Access to/exposure to appropriate agricultural advice/support
  • Access to networks &support structures; coping mechanisms

Access to infrastructure

Access to markets

Access to/usage of credible financial advisory resources

Access to/usage of credible business advisory resources

Access to/exposure to appropriate agricultural advice/support

Access to networks &support structures;

coping mechanisms

key capacities for agri businesses1
Key capacities for Agri-businesses

Access to credit

Access to financial services

Access to markets

Access to infrastructure

Information

Structure/organisation

towards intervention
Towards intervention…

Access to credit

Access to financial services

Access to markets

Access to infrastructure

Information

Structure/organisation

  • AgFiMS dissemination
  • Facilitate dialogue amongst role-players
  • A holistic approach to building capacities to overcome limitations
  • FI intervention
    • Opportunity
    • Product innovation
    • Delivery channels
  • Policy interventions
building capacity
Building capacity …
  • BUSINESS ADVICE
  • Financial management principles
    • Record keeping; Debt management; Income diversification; Cash flow management
  • Strategic business decisions
    • Competitive edge; Pricing; Marketing; Contracting; Group/networking
  • Risk management
    • Price; Weather; etc.
  • FINANCIAL ADVICE
  • Products, services & requirements
  • Financial education
  • Financial advice
    • Investments; debt; insurance
    • Long-term; short-term planning

Platform

  • STRUCTURING/FORMING GROUPS
  • How
  • Requirements; Obligations; Responsibilities
  • Management
  • Structure
  • AGRI RELEVANT INFO
  • Inputs
    • Sources, pricing, credit/advance, security., risks
  • Process
    • Preparation, prevention, remedial, labour, best practices
  • Yield
    • Storage, transportation, timing, surplus/demand & price
slide46

ACADEMIC INS

NGOS

FINANCIAL

INST

RESEARCH

INST

BUSINESS

INST

GOVERN-MENT

OPPORTUNITY

DEVELOPMENT

PRICING

AUTHORITY

VALUE CHAIN PLAYERS

DONORS/

INVESTORS

PLATFORM

Benefits for all role-players

OPPORTUNITY

DEVELOPMENT

AGRI

BUSINESSES

more than an info sharing platform
More than an info sharing platform

PLATFORM

  • INFORMED
  • EXPOSURE TO TECHNOLOGY
  • VALUE CHAIN LINKAGES
  • NETWORKING
  • SUSTAINABILITY
  • RESPONSIBILITY

OPPORTUNITY

  • MONEY PLATFORM
  • PAYMENT SYSTEM
  • MONEY STORAGE
  • MICRO-CREDIT & INSURANCE
towards change
Towards change …
  • Effective dissemination of the AgFiMS findings
  • Facilitating debate/dialogue between different stakeholders with regard to a holistic approach to agricultural development basic on a common understanding of the status quo
  • Specific focused discussions to guide interventions
    • Policy makers – what do we need to change in the business environment?
    • Financial institutions – what kind of services and/or products do agri-business need?
    • Telco’s – how can we develop products/services for agri-businesses? Can our platforms be used broader than currently?
    • Development agents – what should the focus/priorities be? Where do we allocate resources?
towards change1
Towards change …
  • Determining which activities are being undertaken by various players in the agricultural sector
    • Collaborative effort aligned with multiple objectives
    • Avoid duplication
    • Share resources and align activities