• News
    • Latest news
    • News search
    • Health
    • Finance
    • Food
    • Career news
    • Content series
    • Try Devex Pro
  • Jobs
    • Job search
    • Post a job
    • Employer search
    • CV Writing
    • Upcoming career events
    • Try Career Account
  • Funding
    • Funding search
    • Funding news
  • Talent
    • Candidate search
    • Devex Talent Solutions
  • Events
    • Upcoming and past events
    • Partner on an event
  • Post a job
  • About
      • About us
      • Membership
      • Newsletters
      • Advertising partnerships
      • Devex Talent Solutions
      • Contact us
Join DevexSign in
Join DevexSign in

News

  • Latest news
  • News search
  • Health
  • Finance
  • Food
  • Career news
  • Content series
  • Try Devex Pro

Jobs

  • Job search
  • Post a job
  • Employer search
  • CV Writing
  • Upcoming career events
  • Try Career Account

Funding

  • Funding search
  • Funding news

Talent

  • Candidate search
  • Devex Talent Solutions

Events

  • Upcoming and past events
  • Partner on an event
Post a job

About

  • About us
  • Membership
  • Newsletters
  • Advertising partnerships
  • Devex Talent Solutions
  • Contact us
  • My Devex
  • Update my profile % complete
  • Account & privacy settings
  • My saved jobs
  • Manage newsletters
  • Support
  • Sign out
Latest newsNews searchHealthFinanceFoodCareer newsContent seriesTry Devex Pro
    • News
    • Exclusive interview: James Mwangi

    How partnerships can empower small-holder farmers

    Having access to financial services can help small-scale farmers move from subsistence agriculture to agribusiness, but this venture comes with risks. In an exclusive interview with Devex, Kenya-based Equity Bank CEO James Mwangi explains how cross-sector collaboration can mitigate these risks.

    By Elena L. Pasquini // 27 February 2013
    James Mwangi, CEO of Equity Bank. Photo by: Erik Hersman / CC BY

    For small-scale farmers, having access to financial services can mean turning subsistence agriculture into business. Providing them with access to financial services, though, involves risks, according to James Mwangi, CEO and managing director of the Equity Bank in Kenya.

    These risks emanate from the lack of capacity of these farmers to use financial products, he argued.

    “It is like giving someone who doesn’t know how to drive a car,” Mwangi said. “This is why is important to build capacity to the farmers, not just assume they have the intellectual capacity to use modern products when you are bringing them from what you could call subsistence farming and quickly you are pushing them into a modern financial sector.”

    Partnerships can address this challenge, he added. Currently his company and the MasterCard Foundation offer training courses on financial management and entrepreneurship for free to women and youth in Kenya. The goal: to reach 1 million beneficiaries by 2014.

    The Forbes Africa Person of the Year 2012 spoke with Devex on the sidelines of the recently held International Fund for Agricultural Development annual meeting in Rome. He shared insights on creating successful partnerships between the private sector, donors and small-holder farmers.

    What makes a partnership between the private sector and small-holder farmers successful?

    The essential factor that make partnerships successful include a shared objective. There must be a shared objective that brings the partners together. There must be principles on which the partnership is built on that everybody acknowledges, rules to play by. …

    There must be a good formula of sharing the benefits, the risks and the costs of investment in a partnership. There must be a basis agreed in advance. Lastly, there must be a mechanism of measuring performances … You must be able to review constantly the performances.

    Who should facilitate these partnerships?

    Donors have a very significant convening and mobilizing power, simply because of their resources … and the trust and respect.

    [Donors] can play a huge role, but they need to be complemented by the government, because then the government can be a facilitator. It creates an enabling environment within which their [aspirations] on the objectives of the partnership can be fulfilled.

    It helps to remove the bottlenecks, but essentially the small-scale farmers need to be at the center of the partnership and should have a say on how the partnership [should work] because the partnership is intended to support the farmers.

    The private sector is a player. They also have a huge role because they form the value chain, they form the ecosystem that supports the farmers.

    All partners have a huge role, but the donors have a greater capability and strength in mobilizing the formation of partnerships.

    What lessons have you learned about working through partnerships?

    Over the last 10 years, as Equity Bank, we have had enormous [knowledge] of what works and what doesn’t work for partnerships. Every time we learn, we use that as feedback to the process to improve the quality of the partnerships.

    We become more innovative; we become more creative as we learn the lessons on what is working and what is not working, what can be changed and what roles can be interchanged and what roles cannot be [switched around].

    The biggest lesson we’ve learned is the power of collaboration and cooperation in scaling, in creating sustainable small-scale farmers’ initiatives.

    As a banking institution, what do you think is your role in supporting small-scale farmers in those partnerships?

    Financial partners have a huge role to support the farmers and they can do this by taking a long- term view. It is not a short-time view. … They must focus on a win-win situation, so as to sustain the partnership. That is the role that they can play.

    The second role that they can play is to build the capacity of the farmer. …Part of this is by training the farmers. [Financial institutions] need to go beyond provision of financial services. They need to know that the farmers require more capacity. So, as to start, if farmers have to increase output, if farmers have to participate in a comprehensive system, you need to enhance their capacity.

    Are there innovative financial instruments tailored to small-holder farmers you see on the horizon?

    I think small-scale farmers require a whole [range] of financial products; it’s not about credit. They require access to savings, they require access to credit, they require access to financial transaction process and insurances. … The only thing is that they need … transactions that become relevant to them and affordable to them.

    I think crop insurances and livestock insurances are new products that are very central to small-scale farmers, particularly one to protect them.

    Do you envision any specific private-public partnerships in developing these products?

    Absolutely, that is where donors can bring in because insurance companies don’t have enough data. You need donors to come and say, “We are able to have enough data to enable the right pricing of these products.”

    Join the Devex community and access more in-depth analysis, breaking news and business advice – and a host of other services – on international development, humanitarian aid and global health.

    • Agriculture & Rural Development
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).

    About the author

    • Elena L.  Pasquini

      Elena L. Pasquini@elenapasquini

      Elena Pasquini covers the development work of the European Union as well as various U.N. food and agricultural agencies for Devex News. Based in Rome, she also reports on Italy's aid reforms and attends the European Development Days and other events across Europe. She has interviewed top international development officials, including European Commissioner for Development Andris Piebalgs. Elena has contributed to Italian and international magazines, newspapers and news portals since 1995.

    Search for articles

    Related Stories

    Sponsored by Mastercard Center for Inclusive Growth Why supporting small, rural businesses is key to local economic growth

    Why supporting small, rural businesses is key to local economic growth

    Sponsored by The Pfizer FoundationSupporting community-driven solutions to address breast cancer

    Supporting community-driven solutions to address breast cancer

    Sponsored by The Mosaic Company Foundation for Sustainable Food Systems Empowering community development through sustainable agriculture

    Empowering community development through sustainable agriculture

    Sponsored by the END FundCan partnerships and pooled funding drive NTD elimination?

    Can partnerships and pooled funding drive NTD elimination?

    Most Read

    • 1
      Lasting nutrition and food security needs new funding — and new systems
    • 2
      The UN's changing of the guard
    • 3
      The power of diagnostics to improve mental health
    • 4
      The top local employers in Europe
    • 5
      FfD4 special edition: The key takeaways from four days in Sevilla
    • News
    • Jobs
    • Funding
    • Talent
    • Events

    Devex is the media platform for the global development community.

    A social enterprise, we connect and inform over 1.3 million development, health, humanitarian, and sustainability professionals through news, business intelligence, and funding & career opportunities so you can do more good for more people. We invite you to join us.

    • About us
    • Membership
    • Newsletters
    • Advertising partnerships
    • Devex Talent Solutions
    • Post a job
    • Careers at Devex
    • Contact us
    © Copyright 2000 - 2025 Devex|User Agreement|Privacy Statement