Sector mismatch widens agri-SME financing gap

Agri- SMEs at work in a farm

Most commercial banks have access to some type of subsidised capital and/or credit guarantee for agri-SME lending. PHOTO | FILE

Agricultural small and medium-enterprises (agri-SMEs) in sub-Saharan Africa are grappling with a $74.5 billion (or 83 percent) annual financing gap, says a survey by Commercial Agriculture for Smallholders and Agribusiness (Casa) programme.

The survey, The state of the agri-SME sector – Bridging the finance gap, revealed a disproportionate financing pattern favouring a small number of “top of the market” and “possibly adequately served” tier of agri-SME players