for over 37 years...bringing together different players in the rural and agricultural finance in Africa.

Transcription

1 African Rural and Agricultural Credit Association (AFRACA) for over 37 years...bringing together different players in the rural and agricultural finance in Africa.

2 Background The concept of Regional Agricultural Credit Associations (RACAs) finds its origin in the FAO sponsored Regional Seminar on Agricultural Credit for Small-holder farmers held in Accra, Ghana in Subsequently, the World Food Conference on credit for small-holder farmers in developing countries held in Rome in 1975 recommended that FAO should assist its member countries to establish such associations in different parts of the world. This resulted in the founding of three regional credit associations: African Regional Credit Association (AFRACA), Near East, North Africa Agricultural Credit Association (NENARACA) and the Asia Pacific Rural and Agricultural Credit Association (APRACA) and later a similar Association (ALIDE) was established for the Latin America Region. 2

3 Who is AFRACA? The African Rural and Agricultural Credit Association (AFRACA) is a regional association of financial and non financial institutions involved in promoting rural and agricultural finance in Africa. AFRACA was established in 1977 alongside similar institutions across the globe as a lead advocate and coordinator of rural and agricultural finance in their respective regions. The AFRACA secretariat is based in Nairobi, Kenya where it was registered under the NGOs Coordination act in 1981 and received diplomatic status from the government of Kenya in established in as a lead advocate and coordinator of rural and agricultural finance... 3

4 Mission To improve the rural and agricultural finance environment through the promotion of appropriate policy framework and to support member institutions to provide sustainable quality financial services mainly to the bottom of the pyramid communities. Vision A rural Africa where people have access to sustainable financial services for economic development. Core Values United as one people underpinned by mutual respect to develop an inclusive financial sector in Africa guided by the following core values: 1. Honesty and Integrity 2. Professionalism 3. Dedication 4. Synergy...promotion of appropriate policy framework... 4

5 Main Objectives Facilitate promulgation of policy and legal frameworks for rural/agricultural financial services development in Africa; Facilitate demand driven capacity-building initiatives for enhancing the skills of professional staff and member institutions through cross learning and centers of excellence; Support and enhance innovative financial services, delivery methodologies that increase outreach, improve the performance of member institutions that allow significant funding to reach various stages of the value chains in Africa; Initiate and support multi-country studies on issues of common interest and undertake such other activities as may be conducive to the fulfillment of the AFRACA objectives; Seek to interest lenders, local and international investors in opportunities for investment in rural and agricultural sectors for accelerated economic growth in the continent; Catalyze and create greater synergy through partnerships with local and international development partners to increase investment in the rural and agricultural sector; Foster cooperation in planning and improving financial inclusion for rural and agricultural development in Africa; Establish a broad base one stop virtual knowledge and information hub on rural & agricultural finance in the continent for knowledge management....walking the talk taking congresses/workshops resolutions to practise 5

6 Membership AFRACA is a one-stop heterogeneous network of over 110 members, spread across the African Continent....over 110 members AFRACA MEMBERSHIP COUNTRIES SUB-REGIONAL CLUSTERS AFRACA Western Africa Sub Region I (Francophone) AFRACA Western Africa Sub Region II (Anglophone) AFRACA Eastern Africa Sub Region AFRACA Central Africa Sub Region AFRACA Southern Africa Sub Region Non AFRACA Members Governance The governance processes are imbedded in the Association s constitution. The following are the governance structures of AFRACA: The General Assembly: Made up of all member institutions, meets biennially. The Executive Committee: Elected at General Assembly for a two year term renewable. The Secretariat: Manages the day to day activities of the Association. * Please note that the above map shows an overview of the sub regional clusters for AFRACA membership. 6

7 Membership is open and consists but not limited to the following categories of institutions: Central Agricultural Commercial Microfinance Banks and Banks Institutions Development Banks Apex organizations such as Microfinance networks and SACCOs Universities, Training and Research institutions Insurance organizations Ministries and Ministerial agencies dealing in poverty reduction with focus on rural and agricultural development....afraca s General Assembly is made up of all member institutions 7

8 Strategic Focus Areas AFRACA embraces a participatory approach in implementing its programmes and therefore welcomes new partnerships in developing an inclusive financial sector: Policy Development and Advocacy aimed at integration, coordination and strengthening rural and agricultural finance policies and operations. Capacity Building: Demand driven bottom-up structured programmes that include peer to peer learning, exchange programmes, workshops/conferences, specialize trainings aimed at professionalizing agricultural lending thus improving access to financial services to the rural and agricultural sector. Knowledge Management and Information Sharing Services aimed at reaching AFRACA member institutions and the wider public with value adding rural/agricultural finance information. Partnership & Networking Programmes implemented with regional and international organizations for greater synergy and outreach in improving financial inclusion in Africa. Creating Opportunities for Value Chain Finance in Africa by continuing to interest both private and public institutions to support its members in creating business opportunities among partners and member institutions, provide Technical Assistance (TA) to members, B2B Sessions-knowledge-sharing studies, concessionary loans and risk-sharing opportunities e.g. guarantee facilities for agri-finance....afraca embraces a participatory approach in implementing its programmes...

9 Membership Benefits The benefits of being an AFRACA member institution includes but not limited to the following. Member Institutions are offered the opportunity to contribute towards improving rural and agricultural finance policies aimed at wealth/job creation, food security and accelerated economic growth in Sub-Saharan Africa through an inclusive member participatory strategy. Be part of diverse league of leading institutions with considerable experience in the sector that provides practical opportunity for learning to deliver appropriate sustainable and effective rural and agricultural finance services (without reinventing the wheel). Knowledge Management - AFRACA provides a dynamic and focused knowledge management, where members discuss, access and shares a wide range of information on best practices and available instruments for managing risks in financing agriculture. Best Practice and Innovative Product Development AFRACA facilitates the development of innovative products and replication of best practices through outsourcing expertise or exposure visits within and outside the continent....join us to revolutionalize finance for agri-value chains 9

10 ...Membership Benefits Unlimited access to appropriate and effective information collection, analysis and dissemination systems that serves members through appropriate and user friendly multimedia such as the newsletter, the Rural Finance Series, the website ( etc and benefitting from the various capacity building programmes coordinated by AFRACA, sister networks and development partners which contribute towards greater outreach and increased funding to Agriculture. Partnerships and Strategic Alliances With considerable contacts within Africa and across the world, AFRACA offers a good platform for the creation of new partnerships which bring synergy, business opportunities and sufficient capacities to achieve individual and mutual objectives. 10

11 Partners AFRACA is foist to strengthen existing and creating new partneship. We have been working closely with various development partners such us the IFAD, CTA, FAO, DID, MFW4A, AFD, AGRA among others to assist members to increase their rural outreach and to improve their provision of financial services through more appropriate banking practices and innovative financial products. Joining AFRACA To be a member, download membership application form from the AFRACA website ( or contact the secretariat. AFRACA Secretariat; Located at The Kenya School of Monetary Studies (KSMS), Off Thika Super Highway, Nooridin Road P O Box , Nairobi, Kenya Tel: / Cell: Fax: afraca@africaonline.co.ke Website: African Rural and Agricultural Credit Association - AFRACA AFRACA 11

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