4th European Microfinance Award Microfinance for Food Security
This European Dialogue No. 6 by European Microfinance Platform (e-MFP) presents the successful initiatives designed by ten institutions which were shortlisted for the 4th European Microfinance Award on Microfinance for Food Security. Twenty applications from eleven countries were received for the Award and underwent the traditional, rigorous selection process. The Philippine-based MFI, Alalay Sa Kaunlaran Inc. (ASKI) won the award for its initiative focused on increasing the small farmers productivity. The paper states that MFIs can play a crucial role in breaking the low-income trap of smallholder farmers at the bottom of the pyramid within a framework of inclusive business models. The most important elements of the ten shortlisted interventions considered important for the promotion of food security include:
- Commitment to the financial inclusion of rural communities and to working closely with farmers, livestock herders, women, and indigenous populations;
- Carefully designed as well as monitored products and services for rural-based economic activities;
- Flexible loan period and repayment schedule taking into account the repayment capacity as well as the seasonality of the economic activity;
- Provision of non-financial services focused on farming techniques and livestock raising combined with financial facilities;
- Focus on the transformation of smallholder agriculture into a viable agriculture industry through funding and additional services.
