FAR training improves technical agricultural finance skills with RuralInvest

The introductory e-learning session for the training course on rural and agricultural finance (FAR) was held from 1 to 26 April. It was taken by 200 people with a wide range of profiles, such as executives from financial institutions and other inclusive finance businesses operating in Africa, who wish to develop financial products and services adapted to the needs of the agricultural sector (public administrations, fintechs, insurance companies, investment funds, etc.).

Participants attended webinars and online courses on financing the agricultural and rural sector in Africa, delivered through the FAO Academy platform. In particular, they have learned how to identify market opportunities and design financial products and digital financial services. The training course also helped them understand financing mechanisms in agricultural value chains and the associated risks, as well as the challenges associated with agricultural insurance. 

Participants had the opportunity to attend a webinar presenting the RuralInvest initiative led by the FAO investment centre. Chloé Cangiano, agro-economist for the FAO investment centre and coordinator of the activities of RuralInvest, talks to us exclusively about this methodology. 

What is the purpose of the RuralInvest toolkit and who is it aimed at?  

RuralInvest is a free toolkit designed to support field technicians in their work with entrepreneurs to systematically draw up sustainable, professional business plans. RuralInvest’s users come from a wide variety of backgrounds. Field technicians, extension officers, academics, members of training centres, business plan consultants and financial specialists can become RuralInvest experts. They learn what data they need to produce a business plan, how to collect and enter this data into the software, and how to analyse the business plans that are generated.

What tools does it contain exactly?   

RuralInvest contains software to produce bankable business plans as well as training materials to facilitate its use. It is an innovative training method for adults, combining a highly participatory face-to-face session, hands-on sessions in the field and e-learning modules, and a network of practitioners around the world of more than 10,000 people coordinated by a multidisciplinary FAO team.

How does RuralInvest promote access to finance for small- and medium-sized agricultural enterprises (SMEs)?

RuralInvest provides high-quality business plans that give financial institutions an idea of their profitability. The training also stresses the need for entrepreneurs to be included at all stages in the process of developing their business plan, so that they are able to defend it and commit to their obligations when speaking to financial institutions. There is currently no other method available on the market that can achieve such comprehensive results.

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“RuralInvest offers high-quality business plans that give financial institutions an idea of their profitability… There is currently no other method available on the market that can achieve such comprehensive results.”
-  Chloé Cangiano, agro-economist at FAO 

Has RuralInvest been successful so far? 

Since the official launch of the new toolkit in December 2022: 

• $39 million have been allocated to SMEs in the form of grants based on RuralInvest business plans;
• the Agricultural Development Fund (FDA) of the Madagascan Agriculture Ministry uses RuralInvest to manage approximately US$40 million/year;
• 15 institutions have used RuralInvest in different countries and on different projects, and US$9 million have been allocated in the form of facilities/loans.
• 12,000 people have completed the RuralInvest e-learning course and more than 2,000 people use the software in their business activities.

Why do you think that introducing RuralInvest to participants on the FAR course would be beneficial?

The participants were mainly representatives of microfinance institutions. It is important for them to understand the possibilities offered by the RuralInvest tool to their clients - mainly agricultural SMEs - who will use the tool to draw up their business plans in order to obtain financing from MFIs.

Find out more about RuralInvest

In conclusion, the FAR training course offers a unique platform to improve the skills of agricultural finance professionals and promote innovative solutions for the financial inclusion of rural populations. By drawing on strategic partnerships and tools such as FAO’s RuralInvest, this training helps to transform challenges to sustainable agricultural development into opportunities.