An attempt to synthesize financing problems by type of stakeholders x
agro-ecological zone and activity system.
Agro-Ecological
Zone |
| Dry Sahelian Zones |
Forest |
Irrigated Zones |
Cotton Zones |
Peri-urban Zones |
Activity
system |
Dry crops without build-up.
Weak diversification (market remoteness). |
Extensive, more or less settled, animal farming;
major trade zones. |
Diversified system supported by plantings. |
Irrigated crops (rice, market gardening). |
Integrated systems. |
Small-scale activities: trade, small-animal husbandry,
market gardening. |
Family farming businesses, such as animal production. |
Risk Level |
| Greatly subject to climatic risks. |
High
(climate, health). |
Unfavourable evolution of production in global markets. |
Protected from risks of drought.Frequent single-crop
farming. |
Protected from market risks (before liberalization
of systems). |
Weak: diversification, strong competition. |
Health risks.
Risk related to competition in the urban and import markets. |
Constraints |
Priority to food and to food self-sufficiency.
Seasonal fluctuations in revenue.
Low market integration. |
Management of herds.
Significant mobility of animal farmers. |
Major level of investment.
Deferred profitability. |
Investments in irrigation system.
Frequent single-crop farming.
Seasonal revenue fluctuations. |
Seasonal fluctuations in revenue. |
Non-financial constraints often significant; access
to land; access to agricultural council |
Major investment.
Technical management often insufficient. |
Financing
Potential |
| Limited by low level of credit-worthy demand. |
Risky.
Possible with diversified activity system, especially trade. |
Financing by planting segment. |
Large and relatively secured. |
Large volumes. Securing mechanisms need to be rebuilt. |
Credit for diversified activities. |
Small business financing. |
Need to
Finance Operations – Short-Term Credit |
| Weak lean-season credit. |
Animal food.
Health.
Pre-harvest. |
Inputs, labour for main crop and associated crops. |
Large volumes, seasonal credit. |
Large volumes,: seasonal credit. |
Large volumes, working capital. |
Working capital. |
Need to Finance
Operations – Medium-Term Credit |
| Marginal. |
–– |
Equipment. |
Power pump.
Animal traction or small-scale mechanization. |
Animal traction or mechanization equipment. |
Power pump.
Means of transport. |
Equipment, means of transport. |
Need to Finance
Operations – Long- Term |
| –– |
–– |
Planting or replanting. |
–– |
–– |
–– |
Buildings, land. |
Need to Finance
Operations – Savings |
| Low capacity for savings. |
Strong competition from traditional savings. |
–– |
–– |
–– |
–– |
–– |
Need to Finance
Operations – Insurance |
| –– |
–– |
–– |
–– |
–– |
–– |
–– |
CIRAD Dakar seminar materials.Additional information from IFAD.
