📖 The Scoop
Crop receipts are a promising innovation in agricultural finance first developed in Brazil about 20 years ago and recently replicated in Eastern Europe. Crop Receipts allow farmers to obtain pre-harvest finance against a promise to produce a certain amount of crops, with their future farm production serving as main collateral. Taking inspiration from past successes, this study examines the scope for adapting crop receipts to the African context and for introducing them on a pilot basis. The study analysis of the evolution of crop receipts and explores opportunities, challenges and entry points for crop receipt in Africa. Crop receipt pilots in Uganda and Zambia are considered based on a detailed assessment of the legal frameworks, financial and agricultural sectors, and stakeholder consultations. The report closes with the main findings and offers some strategic and operational considerations for introducing crop receipt finance in Africa.
The study was conducted by the FAO investment Centre within its partnership with the International Finance Corporation (IFC) with co-funding from the GAFSP Private Sector Window. While the primary objective of the study is to guide IFC in exploring concrete investment opportunities for piloting crop receipts, its findings and recommendations could be of interest to a broader set of stakeholders in agricultural finance and development.
Genre: Technology & Engineering / Agriculture / Agronomy / Crop Science (fancy, right?)
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