Why agricultural loans classification is key to bridging financing gap

Delegates during an agriculture financing conference in Nairobi on March 27, 2024.

Photo credit: File | Nation Media Group

The agriculture sector faces a substantial financing gap that limits its growth potential. Yet, the exact size of this gap is unclear due to inadequate reporting by financial institutions. Estimates vary widely, from $60 billion to over $100 billion annually, depending on the source.

Most financial institutions group agricultural loans broadly under "food and agriculture," combining diverse value chains like dairy, poultry, and horticulture into a single category.

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