AgriTrust
AgriTrust is a division of ADF. Its sole purpose is the analysis of the
financial constraints within low income rural communities and to seek
solutions which remove their negative impact on social and economic
development.
Broadly speaking financial intermediaries, such as banks and
development agencies, perceive the risks in some rural communities to
be high. As a result finance is often only provided subject to
excessive, often crippling, collateral requirements and high interest
rates. Private investment, in general, shuns low income communities in
rural regions because of a similar views on the perceived risk.
The solution to such a reality, for low income communities, is
naturally a system of resource mobilization which does not incur
unacceptable levels of debt. Fortunately, it is possible to fund
development and avoid debt altogether. For example, Development Equity
Exchanges (DEX) are vehicles for bringing investment finance to rural
communities in the form of equity investment as opposed to loans.
Naturally there are other factors which can help secure an improved performance for equity-based development, including:
- sound investment project identification
- real markets for project output
- effective procurement for project inputs
- adequate project participant training
With this in mind we have been developing:
- training in project identification
- the Agricultural Commodity Exchange (AGRICOMEX) which helps commercial farmers procure inputs and market produce
- the Market Access Exchange (MAX) which assists community-based project designers identify markets and access other information
- drawing up project proposal formats for DEX which include appropriate training for project operations
To visit the AGRITRUST site click here
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