Role of Government in Rural & Agri-Finance: Building a Market-Based System to Support Sustainable Growth

Policymakers increasingly recognize food systems as critical for achieving a range of development goals. Beyond agricultural growth, productivity, and food security, food systems can promote inclusivity, social protection, resilience, environmental sustainability, nutrition, and health outcomes. Realizing the full potential of the agricultural sector to address these complex and interrelated agendas requires a fit-for-purpose agri-finance market.

The progression from a government-directed system to a commercially focused one happens in different ways in different countries, as has been documented in previous ISF research. Regardless of a country’s starting point, the global evidence we’ve gathered from countries at varying stages of development points to three common principles for a strong agri-finance market: distinct, pluralistic, and market-based. 

This new briefing note presents recommendations for how governments can play a more effective role in developing a competitive agri-finance market that supports a robust food system and thriving agricultural economy.

Reach out to matt.shakhovskoy@isfadvisors.org to access the global benchmarking data from this research.