Drawing upon data and insights from the portfolios of 19 financial institutions, including Triodos Investment Management, the Council on Smallholder Agricultural Finance (CSAF) has released its 2023 State of the Sector report. The report analyses the risks and challenges agricultural SMEs in developing and emerging economies face today, and how agricultural lenders are responding.
Four key trends
In 2023, CSAF members issued loans totaling USD 697 million to over 675 businesses across 55 countries. Four key trends from 2023:
- Lending volume decreased, though the number of borrowers grew slightly
- Risk increased, driven by borrower challenges amid overlapping crises
- Coffee activity saw its steepest drop in the past decade
- Lenders have increased technical assistance to help borrowers mitigate risk
Macadamia nuts from the slopes of Mount Kenya
Fostering growth and development
Judith Santbergen is Fund Manager of Hivos-Triodos Fonds, which provides finance to agricultural SMEs in developing and emerging economies. She comments: “Challenges persist. Both lenders and borrowers have to navigate new regulations and are confronted with tangible effects of climate change and volatile markets. This reinforces our commitment to fostering the growth and development of agricultural businesses in Africa and Latin America, thereby catalysing the huge benefits this brings for small-scale farmers.”
About CSAF
The Council on Smallholder Agricultural Finance (CSAF) is an alliance of lending institutions with a shared commitment to building an inclusive and sustainable financial market for small and medium-sized enterprises (SMEs) in the agriculture sector in developing countries worldwide. Founded in 2012 as a forum for lenders to share learning, CSAF now includes 19 members committed to market growth and impact.