Inclusive Business and Financing Models

Inclusive Business and Financing Models

AIL offers Finance-led expertise in finding and exploiting growth opportunities for wholesalers, entrepreneurs and SMEs. This is aimed at streamlining their operations and making SMEs and youth/women entrepreneurs more financially sound. AIL provides beneficiaries with financial-based decision-tools to become more credit-worthy and facilitates stronger and formal linkages with Rural and Community Banks for more sustainable access to credit. AIL works together with financial institutions and value chain actors to appreciate the operations of the value chains of interest and to develop novel financial products that meets the needs of the youth whilst reducing the risks associated with lending to agribusinesses.

AIL accelerates inclusive growth to reduce global hunger and poverty. AIL measures progress through increases in agricultural production, in agricultural value-added per person, and in the incomes of youth and women in rural areas—including families and communities who are vulnerable and very poor.

An indicative example of the successful inclusive business initiative realized has been the Livingstone project in Zambia, where since 2006, AIL/ASNAPP supported approximately 500 smallholder farmers (PWD), growing fresh produce for the hospitality industry employing the Lead farmer Model-backward Integration-Contract farming approach. The project is currently supplying 52 vegetable and fruit lines to dedicated markets in and around Livingstone from 150 ha of land, has created 1,350 jobs, generated cumulative value of more than US$2.2 million at farm gate annually, reduced poverty in the region (affected approximately 3,300 indirect beneficiaries at household level) and contributed to diversification of its economic activities.