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International development

Financing to support food security in Guinea

November 3, 2022

Helping farmers purchase higher quality fertilizer and hire workers, supporting food processors to buy a vehicle or tags to identify their products, and allow businesses to have working capital: financial institutions can help support food security by providing agricultural financing that is adapted to the needs and realities of the entrepreneurs that make up the agri-food system.  

DID has been mandated by Enabel, the Belgian development agency, to support 3 financial institutions in Guinea who will be developing their expertise in agricultural financing, mainly for the pineapple, mango and potato value chains. 

Our team in Senegal first conducted a study to learn how these value chains were organized and how they functioned, in order to then determine which financing vehicles would be most suitable for the partner financial institutions.

This study revealed that in spite of some slight differences, the needs of the different actors involved (production, input supply, processing and marketing) were very similar for all 3 value chains. On their end, the financial institutions presented the same shortcomings in meeting borrower needs: overly short loan cycles, unattainable financial and material collateral requirements and monthly interest rates that are out of reach for the majority. 

By the end of the year, 3 financial products will be suggested to the inclusive financial institutions we've partnered with. These products will improve access to agricultural financing for all actors in the pineapple, mango and potato value chains, thereby helping to improve food security in Guinea on a lasting basis.