IDH Investment Management is proud to have joined the Council on Smallholder Agricultural Finance (CSAF) in 2024 and is thrilled to have contributed to the latest State of the Sector report. The report highlights key trends from 2023, particularly the decline in disbursements among CSAF members, especially in coffee. Agri SMEs faced heightened risks due to price volatility, supply chain challenges, weather events, increased input costs, and other setbacks. We are excited to be part of CSAF, investing and learning together to support Agri SMEs and smallholder farmers in the challenging environments they operate in.
Our new 2024 State of the Sector Report reviews 2023 lending activity across 19 financial institutions, totaling $697 million to over 675 businesses across 55 countries. The report analyzes the risks & challenges #agriSMEs face today, and how agricultural lenders are responding. Four key trends from 2023: 1️⃣ Lending volume decreased, though the number of borrowers grew slightly – particularly across clients borrowing less than $250K. 2️⃣ Risk increased, driven by borrower challenges amid overlapping crises. In particular, risk increased in South America and Africa and for loans greater than $1M. 3️⃣ Coffee activity saw its steepest drop in the past decade. Driven by a volatile market and significant challenges in Peru, coffee disbursements dropped by $86M. 4️⃣ Lenders have increased technical assistance to help borrowers mitigate risk – investing in clients through increased business development services, especially to increase management capacity and build climate resilience. Learn more in the full report: https://lnkd.in/eGKs_JRT