Supporting Underserved and Marginalised Groups

PROFIFA: Promotion for Financial Inclusion for Smallholder Farmers Grouped Into Saving Groups

Background

The PROFIFA project builds on the past intervention AFR implemented with CARE International of training 8,000 saving groups (SGs) (approximately 172,000 low-income people) on basic financial education and business skills to help them fulfil their financial need (savings and borrowing) informally.

After three years of implementation, there was a need to link the SGs to the formal sector to allow them use formal financial services and products and benefit from the linkages by having a remunerate savings account, accessing bigger loans (than what they normally get in their groups) etc., thus expand their agriculture business and consequently increase their revenues. The project aims at demonstrating a sustainable linkage model where SG members’ incomes rise as a result of being linked to a financial institution.

The vast majority (80-90%) of SG members are involved in agriculture activities; therefore, they were trained in agriculture best practices to increase the quality and quantity of their harvest and sell the produce to the market for a higher income. At the same time, AFR partnered with four financial institutions to provide appropriate agriculture financial products to the groups to facilitate their linkages.

Project overview/Key highlights:

Project name Promotion for Financial Inclusion for Smallholder Farmers Grouped Into Saving Groups
Implementing partners Care International in Rwanda, Duhamic-Adri, RIM, Umutanguha, Duterimbere, Vision Fund Rwanda
Project period 3 years (June 2017- May 2020)
Download the Full Project Brief

PROJECT TARGET

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Smallholder farmers linked to formal financial services
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farmers groups linked to the market
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Agriculture financial products improved to serve smallholder farmers
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Village agents trained to provide financial education and business

Project achievements so far

Key Lessons Learnt

Linkages of the informal to the formal sector can not be successful if the challenge of stable source of income is not address

There is need of having more people on the field for constant follow up and advice to the group on how to use banking services and products

For sustainability purpose there is need to create a financing facility for SG’s loan within financial institutions

Because of the fragility of the business it is essential to have agriculture and livestock insurances