Frequently Asked Questions
Where and how does USAID-FinGAP add value?
USAID-FinGAP is an agribusiness financial facilitation project that helps agricultural enterprises in the maize, soy, and rice value chains in the north of Ghana access the financing they need for their businesses to grow. USAID-FinGAP works with three key actors to facilitate financing: 1) Small, Medium, including Large Enterprises (SMiLEs) working in the targeted value chains, 2) Financial Institutions (FIs), and 3) Business Advisory Service (BAS) providers.
- Agribusiness SMiLEs: The project supports SMiLEs to access financing at relatively lower cost using a variety of financial products, while at the same time utilizing risk mitigation tools such as crop or weather insurance, partial credit guarantees, etc. to further incentivize financial institutions to offer financing to agribusinesses.
- Financial Institutions: These comprise of commercial banks, savings and loans, rural and community banks; microfinance, insurance and leasing companies; equity and impact investors; as well as other non-bank financial institutions that are well versed and committed to providing financing for agribusinesses working in maize, soy, and rice. USAID-FinGAP provides incentives to these financial institutions to help them better serve agribusinesses in the targeted value chains. These incentives include support to establish agricultural finance desks and capacity building to financial institutions for agribusiness financing. USAID-FinGAP strives to facilitate the reduction of risks for financial institutions while reducing the cost of financing for agribusinesses.
- BAS Providers: USAID-FinGAP has recruited, trained and contracted a core network of BAS providers to support agribusinesses in financial facilitation. More BAS providers will be recruited throughout the project and prospective firms interested in joining the USAID-FinGAP network are encouraged to apply by contacting the USAID-FinGAP office. Members of the BAS provider network receive capacity building support and are eligible for subsidies for their services.
What does USAID-FinGAP NOT provide?
- Funds for on-lending to either SMiLEs or financial institutions
- Financing for investment in agribusinesses and projects
- Agricultural inputs
- Financial facilitation for value chains other than maize, soy, or rice
(Note: If the agribusiness works in maize, soy, or rice AND other value chains, USAID-FinGAP can support financial facilitation for the enterprise.)
What links along the supply/value chains does USAID-FinGAP support?
USAID-FinGAP facilitates financing through financial institutions for agribusiness SMiLEs in the maize, soy, and rice supply and value chains, including the chain-links for:
- Short and long-haul transport
Who is eligible for USAID-FinGAP support and where are they located?
USAID-FinGAP supports the facilitation of finance for SMiLEs in the maize, soy, and rice supply and value chains in Ghana. The SMiLEs should be physically located in the north of Ghana, above the 8th parallel (also known as SADA Zone), or should otherwise through their operations pull demand for maize, soy, and rice from this region. The result of the efforts should increase production and bring up the economic levels for those in the northern regions. For example, USAID-FinGAP facilitates financing for processors in Kumasi and Accra who buy raw maize, soy, and/or rice from the northern regions.
How do I get USAID-FinGAP assistance?
- If you are an agribusiness SMiLE, from smallholder farmer to both medium and large enterprises in the targeted value chains, contact USAID-FinGAP to discuss your business goals and financing needs.
- If you are a BAS provider interested in joining the project’s network, learning more about agribusiness financing and helping to facilitate financing for agribusiness, contact USAID-FinGAP.
- If you are a financial institution looking to invest in agriculture or not sure whether investing in agriculture is worthwhile, contact USAID-FinGAP for information on investible opportunities.
What is the Investment Mapping System?
The USAID-FinGAP Investment Mapping System (IMS) is a free, innovative web-based application designed to kick start due diligence efforts in the region. It is used by financial institutions, BAS providers, and investors to identify the current location of existing agriculture infrastructure along the value chains and simulate where agricultural investment opportunities will likely be in the future, based on presumptive production increases (i.e. inputs, transportation, storage, and processing).
In addition, the IMS features a soil fertility map that allows users to view soil types per location and a distance measurement tool for determining the proximity of relevant infrastructure and value chain partners. The IMS also has a search function that allows users to move between satellite and map views. With the crowdsourcing feature, users are able to provide data and feedback via SMS to submit new information for inclusion in real time.
Learn more about the IMS Tool.