Agriculture remains a major economic activity and employs a significant number of low income families in Sub-Saharan Africa. Agricultural producers in low income countries face a number of hurdles but worthy of note is their limited access to finance. Although the sector employs 55% of the population, only approximately 1% of bank lending goes to the agricultural sector.
Aledin Nano has identified the critical need to provide funds for farm investments in productivity, improve post-harvest practices, smooth household cash flow, enable better access to markets and promote better management of risks.
Our smallholder lending model incorporates systems that are distinct from those used for microcredit, which in turn, require a different mind-set and investment in new tools and systems. Our model is flexible and bespoke taking into consideration the peculiar and diverse profiles of smallholder borrowers to determine loan tenor, disbursement, and repayment terms. Analysing the household production unit enables us to match payment terms to cash flow, and provides a more accurate analysis of the payment capacity and true risk of lending to the smallholder.
Use of specialized credit officers with a background in agriculture is also one of our critical strengths as well as an automated data capture process and credit analysis. This automation of processes reduces errors, increases efficiency, and improve accuracy of loan application assessment.