Working together on
microfinance and microinsurance
microfinance and microinsurance
“Our presence as an expert and discussion facilitator provided a great opportunity to bring farmers and banks together for the first time and have them talk about their needs and raise any questions they had.”
Would they do it again? The enthusiastic response from Barbara Mestdagt and Antoine Landtmeters, employees of CBC in Namur, leaves little doubt. On behalf of BRS, they spent a week in Kaya, in the north of Burkina Faso. Together with Trias, BRS’ partner there, they led a consultation between representatives of RCPB (Réseau des Caisses Populaires au Burkina, a network of cooperative banks) and the rice and onion producers’ associations.
Barbara: “The purpose of our visit was to provide support to make microcredit more accessible to farmers. Until now, RCPB credit agencies have mainly focused on small traders. Using Kaya’s credit association as a pilot project, the cooperative banks are now trying to launch agricultural credits in the north. First they are working with rice and onion producers.”
Antoine: “A previous BRS mission made it clear that Kaya’s credit agents are not very familiar with the agricultural sector. And vice versa: that farmers have little knowledge of the financial sector. As a result, for example, a farmer only applies for credit when he wants to start sowing. But by the time it is approved, the sowing season will be over.”
Barbara: “Most farmers are also unable to provide figures on income or returns. This does not make it easy to produce a well-founded analysis of their credit application. Moreover, many of the rice and onion producers are illiterate. If the banks want to reach the farmers, they have to creatively translate and visually present the information about credit applications and everything they involve.”
Antoine: “Our presence as an expert and discussion facilitator provided a great opportunity to bring farmers and banks together for the first time and have them talk about their needs and raise any questions they had. If the credit agents become familiar with the agricultural production cycle, they will know, for example, when farmers need to buy seeds and fertiliser. This allows them to provide credits at the right time. And if the rice and onion producers understand which elements are important to obtain a credit, they will be able to submit their application in time along with the right documents.”
Barbara: “Microcredits can make a real difference to farmers, both in terms of their income and in building up a food supply for the local population. Agricultural credits are also a necessity for RCPB itself. There is a lot of competition in the field of microcredits. With farmers as an additional target audience, a whole new market opens up.”
Antoine: “At the end of the week, all the parties reacted positively. Everyone is now convinced of the need to continue these meetings and to structure them, so that farmers and banks can get to know each other and mutual trust can grow.”
Barbara: “And so that the RCPB, in consultation with the farmers, can align the documents and criteria of the credit procedures to the specific situation of farmers in the north of Burkina Faso. There is still some way to go, but the consensus on the usefulness of these meetings is encouraging. And if I can contribute anything more, of course I will gladly return!”
Antoine: “Yes, with pleasure! A BRS mission truly is a unique experience. I wholeheartedly recommend it to my colleagues!”
