Stanbic Agribusiness Financing boosts productivity and market access for Kenyan farmers
Agriculture is one of Kenya’s most promising economic pillars and yet it faces so many challenges like climate change, weather unpredicability, volatile markets and aging machinery to name a few. For a sector that still manages to contribute 35% of the country’s GDP and support 60% of jobs directly and indirectly, the challenges need to be tackled effectively for it to continue thriving.
As an illustration of the challenges we are looking at, Kenya has recorded 74 major natural disasters in the last four decades, including 14 droughts and 54 floods. Most of us are witness to some of these. Unfortunately, current climate behaviour signals more weather extremes ahead and the effects are not pleasant especially in rural areas where 70% of Kenyans depend on agriculture for their livelihoods.
When we look at things from this context, risk management and infrastructure are clearly paramount not only for sustainable farming, but profitability too. Farmers need solid financial partners and one of the strongest and most supportive of them is Stanbic Bank which comes through for farmers, agribusinesses and rural communities by offering financial and digital tools that address both climate and market uncertainties.
Protecting against risk
There are many threats to farming and agribusiness, chief among them being livestock loss, equipment breakdown, crop failure and damage to storage facilities. Stanbic’s agribusiness solutions include insurance products to mitigate such risks. The bank also offers vehicle and equipment insurance to cushion clients against effects of breakdowns so that they do not halt operations.
Stanbic also offers business insurance to protect assets such as processing plants and warehouses. For small holder farmers, Stanbic has an Agricultural Production Loan with flexible repayment terms that take harvest cycles into consideration, so that farmer’s cashflows are not disrupted. Repayment of interest for this loan which leverages on farming proceeds as collateral can be montly, bimonthly or annual. This way, farmers are cushioned from unpredicable seasons. Here is a fact sheet with more information about the loan, including pricing.
By cushioning farmers, Stanbic allows them the peace of mind to try new farming methods and new crops without fearing total loss in case of a bad season.
As mentioned earlier, Stanbic also supports agribusinesses through digital platforms for easier access to markets and insights to increase operational eficiency. This is so, because risk management cannot stand on its own without other supporting systems.
Enter Stanbic’s OneFarm solution, an agriculture platform that links farmers, buyers and services providers, thus offering access and digitization. Here in Kenya, OneFarm has models such as OneFarm Grow which is powered in part by Stanbic through partners like SASA Solutions. Through SASA, farmers are able to view market data in real time, reducing information gaps and improving their bargaining positions. Read more on SASA Solutions here.
Another tool is the Stanbic E-Market Trader, which helps agribusinesses to forecast demand, monitor pricing trends and manage volatility. Better foresight into markets gives farmers an advantage so they can time their sales for maximum profits.
To power all these platforms, there is need for data systems, reliable connectivity and logistics networks, all of which Stanbic and its partners handle seamlessly behind the scenes.
Stanbic makes use of its banking infrastructure to integrate these platforms seamlessly into customer operations. The bank’s trade finance services support international trade and supply chain, enabling agribusinesses to connect markets beyond Kenyan borders.
Wondering how you as a farmer can benefit from Stanbic’s agribusiness solutions?
- Stanbic’s Agricultural Production Loan
- Stanbic’s Vehicle and Asset Finance for machinery purchase.
- Stanbic’s insurance
- Listing products on OneFarm platform for market insights and access to wider markets.
- Stanbic’s trade finance tools
If you as a farmer would like to explore these solutions, visit the bank’s Agribusiness site for details on financing, market support and digital tools. You may go ahead and submit a callback request, or talk to a relationship manager to see which products suit your farm.
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