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The APRACA Perspective on Value Chain Financing in Agriculture in Relation to the

Pro-Poor Public-Private Partnership

MARLOWE U. AQUINO, PhD. FinServAccess Project Manager

APRACA, Bangkok, Thailand

Presented during the Regional Training Workshop on Widening Access to Energy Services through Pro-poor Public-Private Partnerships

UN ESCAP Convention Center, Bangkok, Thailand 25-27 September 2013

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APRACA at a Glimpse

• Established in 1977 through FAO project in connection to the 3rd Asian Conference of Agricultural Credit and Cooperatives in New Delhi, India

• 60 institutional members from 21 countries and additional 10 to be installed during the 62nd APRACA Excom Meeting on 26 Sept. 2013 in Paris, France

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V-M-G-O

• Vision – APRACA to promote productivity, inclusive growth, self-reliance and welfare

• Mission – promote efficiency and effectiveness of rural and agri finance and improve access to financial services through a network

• Core values – clear organization direction, unity and cohesion, quality service and cooperation

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Our Work and Programs

• Policy dialogues and dissemination forums

• Capability Building Activities

• Research and Development Studies

• Institutional Development

• Knowledge Management

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VCF Agriculture

• APRACA through members and networks continuously been working to come up innovative and appropriate best financial practices.

• It focused on comprehensive and integrated activities on VCFA on its projects including the FinServAccess Project

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FinServAccess Project

• Goals:

– to enhance the access of the poor rural people especially smallholder farm households including women and youths for sustainable financial services.

– to provide an avenue for stakeholder’s active involvement and participation in RAF within the perspective of dynamic and iterative partnerships

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NON-GOVERNMENT & GOVERNMENT ORGANIZATIONS

PRIVATE SECTOR AND INTERNATIONAL

ORGANIZATIONS

INDIVIDUALS Farmers, Women

and Youths

South Asia

Southeast Asia

Support Countries (providing expertise)

PARTNERSHIPS – agricultural value chain finance, microfinance, risk management and renewable energy

“KNOWLEDGE-BASED SYSTEM”

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AVCF Models

• Producer-driven – producer organizations provide economic benefit to its members. “Responsibility for sustainability is the key factor of success”.

• Buyer-driven – buyer’s interest for steady flow of market products and finance is used as a way of facilitating and/or committing key players in the chain to sell under specified predetermined conditions

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• Facilitator-driven – support from well-established and strong groups supporting and co-existing with poor producers in the chain; open opportunities for value chain integration

• Integrated system – connects producers to other actors of the chain and integrates to many as co-owners in formal contractual relationships.

Value Chain Finance and Development Process

KEYPLAYERS & STAKEHOLDERS

RESOURCES

VMOG

COMMUNITY

Community of Interest on AVCF

Community of Practice

on AVCF

DEVELOPMENT

PARTICIPATION EMPOWERMENT

POLICIES, PROGRAMS and SERVICES

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• Pro-Poor Public-Private Partnerships (5Ps) in rural and agricultural finance (RAF)

– Focus on 3 intertwined dynamic integration of existing concepts of partnerships and include knowledge partnership

• Collaborative partnership

• Complementary partnership

• Cooperative partnership

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• Incorporates people’s culture and resources in rural and agricultural financing

• Takes into consideration the KNOWLEDGE – SKILLS – ATTITUDES –BEHAVIOURS the stakeholders and key players

• Results to RESPONSIBILITY AND ACCOUNTABILITY

• Ability to do participatory monitoring and evaluation of rural and agricultural finances

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Final words

• Get the stakeholders involvement and active participation in the process in order to gain knowledge, enhance their skills, change their attitudes and behaviours towards financial empowerment and development

• Financial Community of Interest and Financial Community of Practice will to be part of the whole dynamics of financial dynamism of responsibility and accountability.

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For more details and inquiries, please contact: DR. MARLOWE U. AQUINO Project Manager, FinServAccess Asia-Pacific Rural and Agricultural Credit Association (APRACA) Bank for Agriculture and Agricultural Cooperatives (BAAC) Bldg. 469 Nakhonsawon Road, Dusit, Bangkok 10300 THAILAND Tel. (662) 280-0195 Fax. (662) 280-1524 Email addresses: marlowe@apraca.org or marloweaquino@yahoo.com Website: www.apraca.org

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