The development of Innovative Financing Schemes (IFS) is being supported by ACPC as one of the strategies for stimulating greater growth in the rural economy. The volatile nature of the agriculture sector and the systemic risks often associated with agricultural lending requires continued innovation in designing financial products that can (a) meet the peculiar needs of the sector and (b) consequently be adopted by either government or private rural financial institutions. This paper discusses some of the more recent innovative financing approaches that have been developed and which are being piloted by the ACPC in partnership with government financing institutions (GFIs). Notwithstanding the development of these schemes, this paper also emphasizes that enhancing the availability of rural credit should still be appropriately supported by improved technology, infrastructures, inputs, extension services and markets for more effectiveness.
