AFD-ENPARD Programme for access to agricultural finance for small scale semi-commercial farms and cooperatives FinExCoop Georgia
Finance, Extension and Cooperative Development for Georgian Farmers (FinExCoop Georgia) is a 4-year project which is part of the ENPARD Programme. The project aims at improving access to finance and agricultural extension services for small farms and cooperatives in Georgia. It provides Georgian farmers and cooperatives with on-field capacity-building, thus increasing their creditworthiness and financial inclusion in the long run.
Moreover, the project also provides technical assistance to local financial institutions that are willing to increase their financing to small-scale farms and cooperatives with innovative agri-finance delivery models and products. Lastly, the project contributes to the policy dialogue on the agricultural sector and particularly on agricultural finance in the country.
1. To appropriate agro-loans solutions to today’s underfinanced small scale dynamic farms and cooperatives excluded from the Government’s “cheap loan program”;
2. To foster investments over working capital in order to boost the targeted beneficiaries’ development;
3. To provide tailor-made economic, financial and potentially technical guidance to targeted beneficiaries in order to strengthen their creditworthiness and competitiveness as well as demand-driven technical support to local financial institutions willing to increase their small-scale semi-commercial farms and cooperatives’ portfolios.
- Detailed design: accurate identification of the so-called small scale dynamic semi-commercial farms and promising cooperatives, and design of an appropriate advisory scheme according to their needs building up on the existing schemes, especially the Information and Consultation Centers;
- Pilot advisory network scheme: on-field consulting services and follow-up in terms of economic, financial and technical advices (accountability, business plan, best practices, marketing plan, etc.) in order to increase productivity and profitability of farms;
- Feasibility of innovative tools: pilot experimentations in the fields of property/land credit, contractual farming financing schemes, leasing, investment grants, guarantee mechanisms;
- Ad hoc expertise to financial institutions: e.g. for the improvement of corporate and social responsibility policies or the development of dedicated risk assessment tools/methodologies;
- Contribution to the policy dialogue on the agricultural sector and particularly on agricultural finance in the country;
- Monitoring, reporting and auditing: regular assessment of the project implementation and impacts.