Presented by John Matemo C/o Farmers#Trend Blog Cell:

Defining pre-financing Pre-financing can be defined as the loan granted to help finance a project

How to create awareness of the existing financing opportunities to coffee/cocoa farmers Opening training centres in major cities/counties where the crop is planted, harvested or processed to disseminate knowledge among the masses Working with banks and sacco’s since they have direct contact with farmers and can be used to create awareness at their doorstep

Cont… Using online platforms to create awareness. Today farmers have gone digital and have twitter or facebook pages of their farms.

Constraints that limit financial access to coffee farmers High interest rates on loans offered by financial institutions Limited financial literacy Lack of credit history of borrower Long term finance that coffee farmers seek IS VERY rare. Luck of awareness, most coffee farmers are not aware of existence of financiers. Luck of collaterals that financial providers request for. Fear of crop failure

Necessary requirements for accessing financial support strategy Create awareness to coffee farmers throughout the supply chain. Improve bankability to farmers

Benefits of getting pre-financial support Improved yields as well as effectiveness in risk management from realizing the benefits of financial support. Farmers ability to afford cost of inputs required upfront Farmers ability to plant more than they could Improving risk management

Ideas to support the program Offer competitive grants to beginning farmers Expand and improve training Improve risk management skills to farmers Identify collateral acceptable to financiers Work with financial institutions like banks that have direct contact with farmers

Strategy impact to coffee farmers Farmers will be able to afford the cost of inputs required upfront Farmers will be able to plant more than they could Improved access to finance and risk management

Strategies sustainability by other organizations Information provision financiers are always looking for new partners, but the lack of information is a great problem. My strategy will assist producers in providing relevant and reliable credit profiles, and disseminating this to potential finance providers.

Cont….. Offer competitive grants Improve capacity and risk management trainning RISK. The major risk today by coffee farmers are fluctuating prices, climate change

THANK YOU John Matemo