Green Alliance Africa

Over years GAA has embraced integrated and innovative green financing model that includes

Asset Financing Model

This model focuses on financing production assets, or specific agri-business assets that will ensure an increase in the medium and long-term productivity of smallholder farms  Asset Financing provides smallholder farmers with access to wealth-creating assets (such as irrigation systems) that generates the necessary additional income, some of which is utilized to repay small loans

GAA Group Based Model

This model involves farmers coming together into groups or associations to be able to access credit, technical knowledge and markets.  The models are driven and owned by small-scale producers, and it allows producers to market collectively despite widely differing farm assets. The important strategy for small scale producer organisations is collective action for increased participation in emerging modern markets. It is critical to improve the effectiveness of producer organizations in business-oriented services provision in order to improve their performance.This model improves the members negotiating skills and results in enhanced access to service provision.  As this develops, producer organizations vertically integrate to become co-owners of the supply chain or one of its segments in pursuit of added value.  This model works effectively when built on a business-mindset..  However, ownership and management of the Group Based Model s always should always be in the best interests of the farmers when compared to models based on a network of specialized actors.

GAA  Out grower Scheme /Value Chain financing

 Value chain upgrading and financing involve all stakeholders: producers, processors, exporters, intermediaries, service providers to value chain stakeholders. Upgrading value chains consists of providing financial and non-financial services to all stakeholders. Financing small cash-crop in particular farmers is made easier through a supply-chain approach. These smallholders are financed indirectly via contract farming with better rated processors. In this arrangement, the MFI/ SACCO finances a recommended buyer/exporter.  The contract buyer provides all inputs to the farmers, including seeds, fertilizers, agro-chemicals and even irrigation equipment.  At the same time the SME or the contract buyer, can be directly financed to improve their business capacities (e.g to install cold rooms, purchase specialized transport trucks, e.t.c)

GAA Individual financing

This model targets emergent farmers and SME’S who have the potential to grow into commercial enterprises but lack the financing and farm-management expertise. These groups are supposed to justify an individual approach and their potential to develop into commercial or professional enterprises with corresponding growth of financial services.   Strict criteria are established regarding minimum size, sufficient entrepreneurial spirit, basic understanding of business planning, and farm-management skills. With a combination of financial services and technical support, these entities stand a fair chance of success. Emergent enterprises can be financed through the linkages  under the existing retail structure of a particular FIs.We also  form alliances with other stakeholders in the value chain who have also an interest in developing and investing in the farming sector (for example, farmers’ organizations, commodity exchanges, agri-input suppliers, and   processors).