In sub-Saharan Africa, smallholder farmers often face a "finance gap" that prevents them from investing in the irrigation tools needed to survive erratic weather and boost crop yields. While traditional banks often view these farmers as too risky, a new DWFI report highlights how not-for-profit financing models are stepping in to bridge the divide. By offering flexible loan terms, lower interest rates and integrated support services, these mission-driven organizations are helping farmers transition from rain-dependent subsistence to year-round commercial production, effectively turning irrigation into a tool for long-term economic resilience.
The report emphasizes that for these programs to be successful, they must look beyond just providing equipment. The most effective models combine affordable credit with technical training and market access, ensuring that farmers can actually profit from their increased yields to pay back their loans. As weather variability makes water management more critical than ever, these not-for-profit initiatives offer a scalable roadmap for investors and policymakers to make irrigation more accessible for millions of small-scale producers, fostering a more food- and water-secure future for the region.
Read the full report » Financing Smallholder Irrigation: An Examination of Not-for-Profit Financing
