According to World Bank report 2016, more than 2 billion adults do not use formal financial services and more than 50% in the poorest households are unbanked. Farm Concern International, FCI addresses this challenge through the Commercial Villages Savings approach embedded in the FCI’s Commercial Villages Model. This approach promotes saving culture among the smallholders in the Commercial Villages and facilitates partnership development with financial institutions to access financial services. The Commercial Village Savings and investment scheme is based on income from commodity sales facilitated through the collective marketing. With increased and predictable incomes, households deliberately set aside savings on regular and predetermined basis with targeted investment objective including input acquisition, family medical care, education and clothing among others. The approach integrates women, youth and other rural poor who mostly are vulnerable to financial exclusion and ensures that they play an active role in the utilization of the savings. The buildup of savings demonstrates proven cash flow for farmers which is attractive to financial institutions as a basis for lending. Additionally, regular savings by farmers and proper record keeping inculcates a financial discipline that profiles farmers better to financial institutions.

 

 

 

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