Access to finance: capacity building based on a pathway to investment for MSMEs in the agri-food sector

In response to the challenges of accessing finance, COLEAD has developed through the FFM+ programme a comprehensive approach called “Investment Readiness Path”. The approach aims to strengthen the financial capacity of agri-food businesses by equipping agricultural business managers and owners with the skills to validate their business models, develop business and financial plans, and interact with potential sources of financing. This increases their chances of accessing capital. These tools are essential for demonstrating the viability and profitability of businesses to donors and investors, presenting them as bankable projects.

As part of its capacity-building efforts in this area, COLEAD has developed a self-study course entitled ‘Introduction to Financial Planning in the Agricultural Sector’. This four-week pilot training course was organised in March and April this year.

Target audience:

This module is aimed at professionals in the agri-food sector, particularly:

• Business leaders;
• Farmers,
• Administrative and financial managers.
• Business managers;
• Management controllers, and accountants.

The main objectives were:

The training aimed to enable participants to:

• understand the theoretical foundations of financial planning in agricultural businesses;
• recognise the importance of financial planning for accessing finance.
• assimilate and apply financial risk management techniques specific to agriculture;
• identify the essential components of a financial plan and begin to draw up a plan tailored to the agricultural sector.

Keys to success:

This training was highly successful thanks to:

• the use of real-life examples from agri-food businesses
• a blended approach combining self-study and live sessions
• active support and regular interaction with participants.

This is reflected in the feedback. For example:

“It’s a very good introductory course. I’m sure that even people with no financial training were able to learn and understand the basics.” I look forward to an advanced session, if available,” said one participant.

“The format was accommodating; those who missed a Zoom session could catch up, which made self-study easier. It was also interactive, as the trainers allowed more time for participants to share their experiences with each other and with the trainers,’ said another participant.

Prerequisites:

To get the most out of this module, participants are recommended to have completed the introductory webinar, ‘Demystifying access to finance for horticultural and agricultural projects’ ;  and the self-study module “Introduction to Business Plans in the Agricultural Sector”.

This activity is supported by the Fit For Market Plus (FFM+) programme, implemented by COLEAD within the Framework of Development Cooperation between the Organisation of African, Caribbean and Pacific States (OACPS) and the European Union. This publication receives financial support from the European Union and the OACPS. The content of this publication is the sole responsibility of COLEAD and can in no way be taken to reflect the views of the European Union or the OACPS.