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WHAT IS AGRICULTURE FINANCE

The AFP inspires breakthrough solutions to deliver tangible impacts in Ugandan agriculture

Financial services (including savings, transfers, insurance and loans) potentially needed by the agricultural sector, for on-farm production and farm-related value chain activities including input supply, processing, wholesaling, and marketing.
It also includes agricultural value chain finance i.e. financial services, products and support services, flowing either to individual actors or through a value chain, or both, to address the needs and constraints of those involved in that chain, be it a need to access finance, secure sales, procure products, reduce risk and/ or improve efficiency within the chain.

It overlaps with, but for the purposes of this Platform is intended to be distinguished from: the very small financial transactions that are the focus of microfinance (which may be used for agriculture, but are not specifically designed for that use); and enterprise finance for small, medium and large enterprises (which may be used for processing agricultural products, but are not specifically designed for primary production and marketing).

The AFP adopts the definition of agriculture finance used in the Making Finance Work for Africa (MFW4A) "Policy Brief on Agricultural Finance in Africa" (MFW4A/AU/GIZ/BMZ. 2012)