UNCTAD Survey: Financing Organic Agriculture in Africa - Perspectives from African Finance Institutions

This survey has been developed by UNCTAD to collect information from finance institutions professionals to form the basis of an upcoming study on financing Organic Agriculture in Africa*. The objective of this effort is to identify and tackle financial and information barriers to help the development of Organic Agriculture across the African continent. The survey includes 26 questions and takes approximately 15 minutes to complete.

"Organic Agriculture is a production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects". (IFOAM) For the purpose of this survey, Organic Agriculture will only be understood as certified organic farming (i.e. production under an existing national, regional or foreign organic standard).

Respondents will receive copies of UNCTAD's latest studies on organic agriculture and an advanced copy of the publication which will be based on this survey. Additionally, one selected respondent will be interviewed by UNCTAD and his/her interview will be published on the UNCTAD website.

More information on UNCTAD's work on Organic Agriculture financing

*Names of respondents and their institutions will not be disclosed without their express consent.

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* 1. Name

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* 2. Country

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* 3. Name of your institution

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* 4. Type of financial institution

Commercial Bank

Microfinance Institution

Cooperative Lending Institution

Government Owned Development Bank

Government Owned Agricultural Development Bank

Other Non-Bank Financial Institution

Socially-Oriented Lending Institution (domestic)

Socially-Oriented Lending Institution (International)

Non-financial Institution which provides lending)

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* 5. Size of your institution

International (present in African countries and on other continents)

Continental (present in several African countries)

National (present in various regions from your country)

Regional or local

Credit Volume, characteristics and trends

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* 6. Does your institution differentiate between conventional agricultural loans and loans to Organic Agriculture?

Yes

N/A

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* 7. In your institution, is there a dedicated team or staff that works on lending to agricultural production and trade?

Yes

N/A

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* 8. How do loans to Organic Agriculture perform in terms of approval rates and lent amounts in comparison to conventional agriculture loans?

	Higher	Similar	Lower	N/A
Loan approval rate	Loan approval rate Higher	Loan approval rate Similar	Loan approval rate Lower	Loan approval rate N/A
Lent amounts	Lent amounts Higher	Lent amounts Similar	Lent amounts Lower	Lent amounts N/A

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* 9. Does the credit assessment process make note of organic agricultural production and trade differences related to:

	Yes	No	N/A
Produced quantities	Produced quantities Yes	Produced quantities No	Produced quantities N/A
Price premium paid for organic produce	Price premium paid for organic produce Yes	Price premium paid for organic produce No	Price premium paid for organic produce N/A

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* 10. Rate the share of the following types of loans in your institution's portofolio:

	Very high	High	Moderate	Low	Very low	N/A
Agriculture as share of total loan portfolio	Agriculture as share of total loan portfolio Very high	Agriculture as share of total loan portfolio High	Agriculture as share of total loan portfolio Moderate	Agriculture as share of total loan portfolio Low	Agriculture as share of total loan portfolio Very low	Agriculture as share of total loan portfolio N/A
Organic Agriculture as a share of agricultural loan portofolio	Organic Agriculture as a share of agricultural loan portofolio Very high	Organic Agriculture as a share of agricultural loan portofolio High	Organic Agriculture as a share of agricultural loan portofolio Moderate	Organic Agriculture as a share of agricultural loan portofolio Low	Organic Agriculture as a share of agricultural loan portofolio Very low	Organic Agriculture as a share of agricultural loan portofolio N/A

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* 11. Does your bank offer the following products:

	Yes	No	N/A
Specific loans for Organic Agriculture	Specific loans for Organic Agriculture Yes	Specific loans for Organic Agriculture No	Specific loans for Organic Agriculture N/A
Joint saving and credit plans	Joint saving and credit plans Yes	Joint saving and credit plans No	Joint saving and credit plans N/A
Credit to cover certification and training expenses of Organic Farming	Credit to cover certification and training expenses of Organic Farming Yes	Credit to cover certification and training expenses of Organic Farming No	Credit to cover certification and training expenses of Organic Farming N/A
Crop insurance	Crop insurance Yes	Crop insurance No	Crop insurance N/A

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* 12. What are your perspectives on the changes in agriculture over the past five years?

	Increased	Remained stable	Decreased	N/A
Overall credit to agriculture	Overall credit to agriculture Increased	Overall credit to agriculture Remained stable	Overall credit to agriculture Decreased	Overall credit to agriculture N/A
Credit to Organic Agriculture	Credit to Organic Agriculture Increased	Credit to Organic Agriculture Remained stable	Credit to Organic Agriculture Decreased	Credit to Organic Agriculture N/A
Market for organic agriculture products	Market for organic agriculture products Increased	Market for organic agriculture products Remained stable	Market for organic agriculture products Decreased	Market for organic agriculture products N/A

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* 13. Based on your experience, loans for organic agriculture related activities are linked to:

Export operations

Purchase of equipment

Investment in certification

Marketing

Purchase of inputs

Research

N/A

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* 14. Indicate the main organic crops (if any) for which farmers have been the most successful in securing loans and explain why this is the case.

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* 15. Rank the following barriers based on their impact on access to finance for conventional agriculture producers:

	Strongly limits access to finance	Moderately limits access to finance	Does not limit access to finance	N/A
Land tenure regime	Land tenure regime Strongly limits access to finance	Land tenure regime Moderately limits access to finance	Land tenure regime Does not limit access to finance	Land tenure regime N/A
Overall level of risk of agricultural activities	Overall level of risk of agricultural activities Strongly limits access to finance	Overall level of risk of agricultural activities Moderately limits access to finance	Overall level of risk of agricultural activities Does not limit access to finance	Overall level of risk of agricultural activities N/A
Limited guaranties	Limited guaranties Strongly limits access to finance	Limited guaranties Moderately limits access to finance	Limited guaranties Does not limit access to finance	Limited guaranties N/A
Small size of the operations	Small size of the operations Strongly limits access to finance	Small size of the operations Moderately limits access to finance	Small size of the operations Does not limit access to finance	Small size of the operations N/A
Insufficient return on investment	Insufficient return on investment Strongly limits access to finance	Insufficient return on investment Moderately limits access to finance	Insufficient return on investment Does not limit access to finance	Insufficient return on investment N/A

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* 16. Rank the following barriers based on their impact on access to finance for Organic Agriculture producers:

	Strongly limits access to finance	Moderately limits access to finance	Does not limit access to finance	N/A
Land tenure regime	Land tenure regime Strongly limits access to finance	Land tenure regime Moderately limits access to finance	Land tenure regime Does not limit access to finance	Land tenure regime N/A
Overall level of risk of agricultural activities	Overall level of risk of agricultural activities Strongly limits access to finance	Overall level of risk of agricultural activities Moderately limits access to finance	Overall level of risk of agricultural activities Does not limit access to finance	Overall level of risk of agricultural activities N/A
Limited guaranties	Limited guaranties Strongly limits access to finance	Limited guaranties Moderately limits access to finance	Limited guaranties Does not limit access to finance	Limited guaranties N/A
Small size of the operations	Small size of the operations Strongly limits access to finance	Small size of the operations Moderately limits access to finance	Small size of the operations Does not limit access to finance	Small size of the operations N/A
Insufficient return on investment	Insufficient return on investment Strongly limits access to finance	Insufficient return on investment Moderately limits access to finance	Insufficient return on investment Does not limit access to finance	Insufficient return on investment N/A

Risk and guaranties

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* 17. Rate the impact of the following parameters on the likeliness to secure a loan:

	Very positive	Positive	Neutral	Negative	Very negative	N/A
Organic certification	Organic certification Very positive	Organic certification Positive	Organic certification Neutral	Organic certification Negative	Organic certification Very negative	Organic certification N/A
Fair trade certification	Fair trade certification Very positive	Fair trade certification Positive	Fair trade certification Neutral	Fair trade certification Negative	Fair trade certification Very negative	Fair trade certification N/A
Affiliation to a cooperative	Affiliation to a cooperative Very positive	Affiliation to a cooperative Positive	Affiliation to a cooperative Neutral	Affiliation to a cooperative Negative	Affiliation to a cooperative Very negative	Affiliation to a cooperative N/A
Export contract with an international buyer	Export contract with an international buyer Very positive	Export contract with an international buyer Positive	Export contract with an international buyer Neutral	Export contract with an international buyer Negative	Export contract with an international buyer Very negative	Export contract with an international buyer N/A
Sales contract with national buyer	Sales contract with national buyer Very positive	Sales contract with national buyer Positive	Sales contract with national buyer Neutral	Sales contract with national buyer Negative	Sales contract with national buyer Very negative	Sales contract with national buyer N/A
Price premiums for organic produce on the international market	Price premiums for organic produce on the international market Very positive	Price premiums for organic produce on the international market Positive	Price premiums for organic produce on the international market Neutral	Price premiums for organic produce on the international market Negative	Price premiums for organic produce on the international market Very negative	Price premiums for organic produce on the international market N/A

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* 18. Rate the share of rejected loans requests for:

	Very high	High	Average	Low	Very low	N/A
Conventional agriculture	Conventional agriculture Very high	Conventional agriculture High	Conventional agriculture Average	Conventional agriculture Low	Conventional agriculture Very low	Conventional agriculture N/A
Organic Agriculture	Organic Agriculture Very high	Organic Agriculture High	Organic Agriculture Average	Organic Agriculture Low	Organic Agriculture Very low	Organic Agriculture N/A
Fair trade related agriculture projects	Fair trade related agriculture projects Very high	Fair trade related agriculture projects High	Fair trade related agriculture projects Average	Fair trade related agriculture projects Low	Fair trade related agriculture projects Very low	Fair trade related agriculture projects N/A

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* 19. Estimate the percentage of non-performing loans for the following credit projects:

	Up to 30%	Between 30% and 60%	Above 60%	N/A
Conventional agriculture	Conventional agriculture Up to 30%	Conventional agriculture Between 30% and 60%	Conventional agriculture Above 60%	Conventional agriculture N/A
Fair trade related agriculture projects	Fair trade related agriculture projects Up to 30%	Fair trade related agriculture projects Between 30% and 60%	Fair trade related agriculture projects Above 60%	Fair trade related agriculture projects N/A
Organic Agriculture	Organic Agriculture Up to 30%	Organic Agriculture Between 30% and 60%	Organic Agriculture Above 60%	Organic Agriculture N/A

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* 20. Which of the following collaterals are commonly presented by the different categories of borrowers?

	Smallholders	Mid-sized producers	Large producers	N/A
Land title	Land title Smallholders	Land title Mid-sized producers	Land title Large producers	Land title N/A
Crop insurance	Crop insurance Smallholders	Crop insurance Mid-sized producers	Crop insurance Large producers	Crop insurance N/A
Guaranty from a cooperative	Guaranty from a cooperative Smallholders	Guaranty from a cooperative Mid-sized producers	Guaranty from a cooperative Large producers	Guaranty from a cooperative N/A
Export contracts	Export contracts Smallholders	Export contracts Mid-sized producers	Export contracts Large producers	Export contracts N/A
Guaranty from an international buyer	Guaranty from an international buyer Smallholders	Guaranty from an international buyer Mid-sized producers	Guaranty from an international buyer Large producers	Guaranty from an international buyer N/A
Guaranty from a public institution	Guaranty from a public institution Smallholders	Guaranty from a public institution Mid-sized producers	Guaranty from a public institution Large producers	Guaranty from a public institution N/A
Domestic sales contracts	Domestic sales contracts Smallholders	Domestic sales contracts Mid-sized producers	Domestic sales contracts Large producers	Domestic sales contracts N/A

Perception of organic farming

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* 21. How would you rate your level of awareness of agriculture and the market for organic crops?

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* 22. Please rate the level of risk of the following activities from a lender’s perspective

	Very high	High	Moderate	Low	Very low	N/A
Conventional agriculture for the domestic market	Conventional agriculture for the domestic market Very high	Conventional agriculture for the domestic market High	Conventional agriculture for the domestic market Moderate	Conventional agriculture for the domestic market Low	Conventional agriculture for the domestic market Very low	Conventional agriculture for the domestic market N/A
Export-oriented conventional agriculture	Export-oriented conventional agriculture Very high	Export-oriented conventional agriculture High	Export-oriented conventional agriculture Moderate	Export-oriented conventional agriculture Low	Export-oriented conventional agriculture Very low	Export-oriented conventional agriculture N/A
Organic Agriculture to supply the domestic market	Organic Agriculture to supply the domestic market Very high	Organic Agriculture to supply the domestic market High	Organic Agriculture to supply the domestic market Moderate	Organic Agriculture to supply the domestic market Low	Organic Agriculture to supply the domestic market Very low	Organic Agriculture to supply the domestic market N/A
Export oriented organic agriculture	Export oriented organic agriculture Very high	Export oriented organic agriculture High	Export oriented organic agriculture Moderate	Export oriented organic agriculture Low	Export oriented organic agriculture Very low	Export oriented organic agriculture N/A
Fair trade	Fair trade Very high	Fair trade High	Fair trade Moderate	Fair trade Low	Fair trade Very low	Fair trade N/A

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* 23. Why is there an apparent gap in supply and demand for agricultural finance in Africa, in a world context of low interest rates and investors eagerly looking for investment opportunities in developing countries?

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* 24. Indicate the level of availability of the following instruments to support Organic Agriculture:

	Very high	High	Moderate	Low	Very low	N/A
Subsidies or grants to cover certification costs	Subsidies or grants to cover certification costs Very high	Subsidies or grants to cover certification costs High	Subsidies or grants to cover certification costs Moderate	Subsidies or grants to cover certification costs Low	Subsidies or grants to cover certification costs Very low	Subsidies or grants to cover certification costs N/A
Subsidies or grants for the conversion of farmland	Subsidies or grants for the conversion of farmland Very high	Subsidies or grants for the conversion of farmland High	Subsidies or grants for the conversion of farmland Moderate	Subsidies or grants for the conversion of farmland Low	Subsidies or grants for the conversion of farmland Very low	Subsidies or grants for the conversion of farmland N/A
Grants to cooperatives of organic producers	Grants to cooperatives of organic producers Very high	Grants to cooperatives of organic producers High	Grants to cooperatives of organic producers Moderate	Grants to cooperatives of organic producers Low	Grants to cooperatives of organic producers Very low	Grants to cooperatives of organic producers N/A
Subsidies or grants to provide extension/training or distribute free inputs to farmers	Subsidies or grants to provide extension/training or distribute free inputs to farmers Very high	Subsidies or grants to provide extension/training or distribute free inputs to farmers High	Subsidies or grants to provide extension/training or distribute free inputs to farmers Moderate	Subsidies or grants to provide extension/training or distribute free inputs to farmers Low	Subsidies or grants to provide extension/training or distribute free inputs to farmers Very low	Subsidies or grants to provide extension/training or distribute free inputs to farmers N/A
Research grants	Research grants Very high	Research grants High	Research grants Moderate	Research grants Low	Research grants Very low	Research grants N/A
Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products	Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products Very high	Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products High	Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products Moderate	Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products Low	Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products Very low	Tax exemptions for the purchase of inputs, equipment or related to the sale of organic products N/A
State backed loans or export credit	State backed loans or export credit Very high	State backed loans or export credit High	State backed loans or export credit Moderate	State backed loans or export credit Low	State backed loans or export credit Very low	State backed loans or export credit N/A

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* 25. Indicate practices, initiatives or lessons learned that could facilitate the access of Organic Agriculture practitioners to finance.

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* 26. Please provide your email address and phone number if you would like to receive complimentary copies of UNCTAD's latest studies on organic agriculture – and have a chance to be selected for a follow up interview