WHAT WE DO

Bridging the finance gap and unlocking the growth and impact potential of agricultural SMEs in Africa.

CHRONIC LACK OF FINANCE IN AGRICULTURE SECTOR

Agriculture employs the majority of the population in East Africa and accounts for a substantial share of the economy, but it receives a miniscule portion of financing.

In East Africa

65%

of people work in agriculture

Accounting for

25%

of the national GDP

Yet agriculture receives less than

5%

of commercial bank lending

THE PATTERN IS CONSISTENT ACROSS EAST AFRICA

% workforce in agriculture
contribution to gdp
% of commercial bank loans to agriculture

SIZING THE AGRICULTURAL FINANCE GAP

Across Sub-Saharan Africa, only 25% of the estimated $240 billion market for agricultural finance is currently being met. Of the $180 billion annual gap, there is a $65 billion shortfall for agricultural SMEs. Aceli Africa is a market incentive facility designed to make agricultural SMEs more attractive to lenders, while aligning lenders’ portfolios with development goals.

THE MISSING MIDDLE FOR AGRI-SME FINANCE

While there is some lending activity in the missing middle, the unattractive economics of serving this segment (i.e., too risky and costly to serve) indicate why there still are no successful business models for serving it at scale.

Commercial banking

Large loans to a handful of corporate entities clustered in formal value chains, since informal value chains are considered riskier

Agricultural Missing Middle

Agricultural SMEs that aggregate thousands of farmers and create employment opportunities but are considered too risky and costly to serve, especially when they work within informal value chains such

Microfinance

Small loans to many individuals and microenterprises, with more loans going to formal value chains than to informal value chains

Learn more about Aceli's approach