2. Opportunity International
» Founded in 1971 in South America
» Originally an NGO providing micro loans
» Developed regulated micro finance institutions in 22 countries
in Central & South America, Africa, Asia and Eastern Europe.
» Targeting bottom of the pyramid
» Commence Rural Finance in 2007.
» Rural Clients……
– 65% of African Population
– Majority of the Poor
– Majority of the Malnourished
– 40% Efficient use of Land and Labour
– Loss 50% of Gross Income to Income Smoothing
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3. Why Rural Finance
» 65% of African Population
» Majority of the Poor
» Majority of the Malnourished
» 40% Efficient use of Land and Labour
» 50% of Gross Income LOST to Income Smoothing
» Loosing Youth to Urban Migration
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4. Opportunity Africa Rural Finance coverage
Uganda
2009
Ghana
2014
Ghana
2009
Kenya
2013
DRC
2013
Rwanda
2010
Tanzania
2013
Malawi
2007
Mozambique
2009
South Africa
2015
5. Client Access in Rural Areas
» Branches
» Kiosk Banks
» Container Banks
» ATMs
» Point of Sales
» Mobile Banks
» Mobile Phone
» Village Loans Officers
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6. Production Finance within the Value Chain
Opportunity will
engage at any level
of the Value Chain
..but…
Production Finance
can have the
greatest impact on
annual rural
household income
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7. The Rural Model
OUTPUT MARKET
Strategic Links
Contract / Auction / Trader
Microfinance
Market
Information
Systems
Savings / Loans / Transfer
Insurance products
Farmer
Farmers Groups
Infrastructure
Input Supplier/s
Seeds/Tools/Ferts/ Chems
Extension Services
•Technical Support
•Research & Development
•Communications
•Power
•Roads
•Water
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8. Smallholder Farmers
SAIL Sugar Mill in Kaliro, E Uganda
» Private Investment by
Alam Group
» 25km impact
» 100% Outgrowers
» Partnership Investor /
Farmers / Banks
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9. SAIL Sugar Plant – phase 1
»
»
»
»
$ 40 million Investment by SAIL in Sugar Plant
300 direct employees at the SAIL site on 3-shift basis
3,500 Farmers producing Cane on 15,000 acres
$15 million investment in Sugar Cane production 3,000
farming families with external labour and contracting
services
» 400,000mt cane / 40,000mt sugar / Molasses / Surplus
Power 6-8 megawatts – per year
» Phase 2 will increase production by 50%
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10. Spin-off Impact – per year
»
»
»
»
»
»
»
»
$ 2.5 m investment in Seed Cane
80-100 Tractor hire services
1000 people employed weeding
750 people employed harvesting
150 Trucks delivering cane
$ 20m worth of Cane Sold per year
+/- $ 4m profit to farmers from activities
Majority of Expenditure in local area
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11. The Opportunity
» Smallholder Farmers are looking for the Opportunity to
produce a saleable crop.
» They need Technical Support to achieve commercial yields
and quality products.
» Farmers and Land is not an issue
However
» Offer then a fair deal – incomes of $1000s not $ 100s
» Provide the right level of Technical Support so that
Financial Support can engage.
» Need a Return to All Costs including Labour to be
Sustainable
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