Value Chain Finance

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PAWDEP in partnership with Oikocredit has launched financial services in Value Chain Finance focusing on five key sub-sectors, namely :- potato, dairy, coffee, extensive livestock and domestic horticulture.

Value chain finance refers to financial products and services that flow to or through any point in a value chain in order to increase returns on investment and growth and competitiveness of that value chain.

A value chain comprises of chain actors (involved in formation, transformation and distribution of the product) and service providers and supporters who facilitate the chain. Major value chain activities include production, processing and marketing.

Value chain finance is important to help businesses meet market demands – whether that is to maintain or expand operations or invest in upgrading to access new market opportunities.

Through its ability to reduce risk and enhance incentives, value chain finance also lends itself to the sustainable delivery of its services,for example, ensuring that farmers and wholesalers have continuous access to a line of products they need that are delivered in a timely manner and meet certain specifications.