1. Value Chain Finance Experiences
April 25, 2017
Victoria Falls, Zimbabwe
Mark Rostal

2. Kenya – Opportunities
The largest economy in and the growth engine for East and Central Africa
One of the most developed financial industries in Sub-Saharan Africa
A forward-thinking Central Bank with an opportunistic and entrepreneurial approach to regulatory reform balancing stability, efficiency, and inclusion while encouraging financial sector innovation
A financial services industry composed of a diverse set of increasingly competitive financial institutions focused on the base of the pyramid
A world-class leader and trendsetter in mobile technology, payments and transfers
Devolved government under the new constitution

3. Kenya – Challenges
36 million smallholder farmers (80% of the total population) are largely excluded from the financial sector
12.6% of people in rural areas have access to electricity
.037% of agricultural land is irrigated
Financial sector risk aversion
Financial pricing and product customization
Financial sector transparency
Population growth
Decreasing farm sizes
Donors (multi-lateral, bi-lateral and foundations)

4. Our Financial Sector Approach
Government – National and county partnerships
Financial institutions – Strategy first, then structures, systems and skills
Factor inputs – strengthening
Agriculture value chains – financial flows mapping
Loan guarantees

5. Successes
Policy – CBK: DTM Bill and Agency Banking; RBA: Regulation G; AKCP: Credit Reference Bureaus
Financial institutions – over 100 banks, deposit-taking MFIs, NGO MFIs and SACCOs
Factor inputs – KBA, AMFI and iCow
Agriculture value chains – over 50 products
Loan guarantees – unintended consequences
Bangladesh – National Bank policy on agriculture