Warehouse Receipt Financing: The Experience of Access Bank Madagascar

This is part of AgriFin’s collection of resources which include brief technical notes, lessons learned reports, and articles examining a broad range of topics related to sustainable agricultural finance.

A warehouse receipt financing system is a mechanism that allows the use of commodities as collateral to secure loans. In a typical warehouse receipt financing approach, a farmer stores commodities at a certified independent warehouse. In this publication, Access Bank Madagascar (ABM) has attempted to design and pilot a warehouse receipt loan in the absence of independent warehouses, without legal provision for or against using receipts, and with only limited transport infrastructure.