Innovations in savings led input finance - the Fundo Agricola

Innovations for Agribusiness (InovAgro) is a private sector-led agriculture growth initiative that partners with companies seeking to engage with smallholder farmers in Mozambique.

It has evolved to include the Fundo Agricola (FA), an intervention that assists farmers to save for the purchase of high-quality seeds and other agricultural inputs through community-based savings groups. 

This paper looks at the development and challenges of setting up the FA. Although still in its infancy the strong interest from participating communities demonstrates the fund’s value to smallholders. The FA is not seen as the final solution, but as a foundation for leveraging new business models.