Access to Finance for Producers/Farmers

completed

The three-year project helps expand the use of Warehouse Receipt (WHR) in the banking industry in Ethiopia, to increase access to finance for the agriculture sector. Phase I raises public awareness via forums and workshops involving the government, banks, and industry associations; assists the Ethiopia Commodity Exchange (ECX); and provides regulatory capacity building. Phase II offers advisory services to banks; and facilitates awareness raising among farmers and small and medium enterprises (SMEs). Objectives are: 1) to create an enabling environment for access to finance, by raising public awareness of WHR mechanism; 2) to strengthen the operations of ECX in targeted areas and enhance market acceptance of WHR; 3) to facilitate the development of WHR as a way to increase access to finance and play a facilitating role between the Central Bank, ECX, and the banking industry; and 4) to provide training and advisory services to several pilot banks that commit to introducing WHR-based financing.