NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

IFAD recently developed an innovative ‘financial value chain’ programme design approach to inclusive smallholder adaptation finance. Focusing on smallholder farmer needs, demand, and household economic context, the approach estimates smallholder propensity to borrow, capacity to borrow, and adaptation technology needs/ knowledge. The design approach assesses interest of potential financial institution partners, their financial absorption and management capacity, and their ability to reach targeted smallholder market. This approach is guided by and is consistent with IFAD’s new Inclusive Rural Finance Policy and was developed for and implemented in IFAD’s IGREEFIN 2 design for seven countries along the Great Green Wall as a Green Climate Fund proposal.