Over the last 25 years, IFAD has accumulated an extensive knowledge on rural finance. This knowledge has been translated into a policy and decision tools. The latter provide operatonal guidance on key rural finance issues reflected in IFAD rural fiinance policy.
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Rural
finance is a vital tool in poverty reduction and rural development.
Two thirds of the IFAD’s current projects have a rural finance component;
about 21% of the Fund’s resources are dedicated to rural finance.
Most of IFAD’s target group are small producers engaged in agricultural
and non-agricultural activities in areas of widely varying potential.
Direct access to financial services affects the small producers’
productivity, asset formation, income and food security.