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Vidéo explicative : la finance au service de l’agriculture et territoires ruraux

September 12, 2019

Development and Rurality, two concepts which may seem at odds with each other … And yet, if there is one area that opens up real opportunities, it is the rural sector, and agriculture in particular. It is even central to the development of emerging and developing countries. Rural economic activities and agriculture create jobs opportunities, improve people’s living conditions and reduce vulnerabilities; It is a fundamental source of economic growth for these territories and countries. Agriculture is also an essential sector since it is on the front line when it comes to preserving natural resources, mitigating climate change and allowing populations to adapt to it. Supporting this ecosystem is therefore crucial: inequality can be reduced by opting for more efficient and sustainable practices, all the while promoting the structuring of territories. And this is what is proposed by AGREENFI, the approach developed by the AFD Group: AGREENFI supports the financing of economic activities in rural areas, such as family farming, the valorisation and processing of agricultural products, fishing, the forestry sector, sustainable practices, basic services… In concrete terms, thanks to AGREENFI, parties active in rural areas have access to tailored financial services, in the form of short, medium or long-term credit, to help them to develop or strengthen their activities. In addition to obtaining financial support, the project owner may also receive the support of experts who will advise and train him throughout their investment project. The project owner may even benefit from investment grants in innovative areas. How is all this possible? Thanks to local financial institutions! AGREENFI encourages them to develop services dedicated to rural populations providing them funding adapted to their needs as well as tailored institutional and technical support. The financial partners are offered an extensive panel of tools: tailored financial resources, a risk-sharing mechanism and support for capacity building… in order to transform their practices and thus promote a more sustainable development model. Institutions therefore hold all the cards to be able to offer products adapted to the specific features of agricultural and rural activities. At a macro level, they even contribute to the implementation of local public policies. AGREENFI is a local offer and a tailored support to the various stakeholders involved in order to help them to better understand the opportunities, needs and risks of the rural and agricultural sector. The world of finance has been called upon to meet the challenges of development and it’s working!

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