Collaborating for smallholder finance: how is Stanbic closing the loop?

Through its 'smallholder farmer financing scheme', the Agricultural Banking division of Stanbic IBTC is attempting to unlock the potential of Nigeria's rural farmers. This report asseses how Stanbic supports the maize and soya value chains through a tripartite alliance with Agri Services Training Centre and Marketing Ltd (AJTC) and Grand Cereal Ltd.

Main findings

• Stanbic has successfully promoted inclusive business models that support smallholder farmers. The pilot project has increased the income of smallholders through access to finance, agricultural inputs, extension services and market linkages.
• The project has also exemplified the potential for greater efficiency and productivity in the agricultural value chain.

Intervention description

The intervention seeks to improve weak value chains and to further the government’s goals for increased agricultural exports by providing smallholder credit. It also encourages government bodies to be more proactive in managing the risks associated with smallholder lending.

Evidence methodology

• Researchers made use of both qualitative and quantitative research methods.
• Primary data was collected through a combination of focus group discussions and interviews in the field.
• Secondary data was conducted through desk research whereby data was gathered from external sources including the World Bank, the MasterCard Foundation and the Microfinance Information Exchange.

Useful for:

This case study is a useful resource that demonstrates the transformative capacity of a multi-pronged investment strategy in rural agricultural practises. It makes a strong argument for incorporating training and marketing into investment programmes for the sake of achieving sustainable market reforms.