The Challenge

A National Central Bank decided to set-up a financial framework/mechanism for expanding lending to agricultural value chains.

The new innovative mechanism targeted at de-risking bank lending to the agricultural sector; it was designed to provide the singular transformational and one-bullet solution to break the seeming jinx in the nation’s agricultural lending and development.

The Solution

pcl. conducted a comprehensive diagnostic and assessment of the nation’s agriculture landscape and agricultural financing landscape. The pcl. team evolved the 5 Pillars of Framework namely:
  • Risk-sharing facility
  • Insurance facility
  • Technical Assistance
  • Bank Incentive Mechanism
  • Bank Rating Scheme
The pillars were aimed to de-risk agricultural finance value chain, build long term capacity and institutionalize incentive for agriculture lending.

The Results


Over $40m in additional financing from banks’ balance sheets have been catalysed and a further $133m is at various stages of approval as at June 2019.