Blog

The December 7, 2023 Finance Champions meeting featured four finance-focused presentations on:

Society Development Committee, or SDC, based in Faridpur, Bangladesh, is a microfinance partner of the Feed the Future Bangladesh Livestock and Nutrition Activity, funded by USAID and implemented by ACDI/VOCA. Through this partnership, thousands of people working in Bangladesh’s livestock sector have benefited from microfinance products.

Accessible finance is vital for small businesses and entrepreneurs. Yet, oftentimes, they struggle to access financing from traditional sources because they lack the knowledge to produce comprehensive financial documentation required by banks. Meanwhile, financial institutions may perceive small businesses as higher risk clients due to their size, limited track record, and insufficient collateral. In many countries, like Rwanda, financial institutions have limited knowledge in the livestock value chain financing opportunities compared to crops value chain.

In rapid response to the abrupt trade disruptions resulting from Russia’s blockade of the Black Sea—a tactic in its war on Ukraine, the U.S. Agency for International Development (USAID) launched the Agriculture Resilience Initiative (AGRI)-Ukraine. AGRI-Ukraine is critical to supporting Ukraine’s export and agricultural sector needs, which are expected to remain vulnerable to the Russian Federation’s aggression in the months and years to come.

The Finance Champions group was established in March 2023 with the aim to share innovative approaches being tested by USAID Missions, Bureaus and Independent Offices and to exchange learning on the topic of mobilizing finance in development. This group, which is internal to USAID, meets every six weeks, and has grown from an initial group of 20 to 160 members.

Developed through a partnership between the USAID and Mastercard, Project Kirana focused on helping women micro entrepreneurs gain the tools they need to grow their businesses in India. Project Kirana recognized the complex set of problems encountered by women micro entrepreneurs in India: limited business and digital financial capabilities, and limited access to formal financial services. By equipping women entrepreneurs with the knowledge and tools they needed — including financial and digital literacy expertise, business management skills, and strategies for addressing cultural barriers — over 2,500 women were able to grow their small retail businesses and increase their incomes.

Lack of access to finance is universally regarded as one of the most significant constraints to economic development. Without affordable and appropriate capital, Northern Kenyan individuals and micro, small, and medium enterprises (MSMEs) are prevented from participating in the formal economy, capitalizing on business opportunities, investing in their livelihoods, and responding to shocks, such as natural disasters.

This blog was originally posted on Climatelinks as a collaboration during COP28.

Have you ever wanted to see where USAID provides funding, or what USAID invests in?

This post was written by Habitat for Humanity's Terwilliger Center for Innovation in Shelter and was Originally Published on the Vikāra Institute's website.

This post was written by Habitat for Humanity's Terwilliger Center for Innovation in Shelter and was originally published on the Vikāra Institute's website.

Start-ups and fast-growing small and medium enterprises (SMEs) need financing to grow—and that financing must be affordable. Yet, the return on investment that finance providers, such as banks and investors, require (to cover their costs and risks) often exceeds what SMEs can afford.

Around the world, donors like USAID are focused on helping small businesses thrive. These businesses create the lion’s share of formal jobs in emerging markets, and they provide the goods and services local communities need. Still, many small businesses struggle to grow because they can’t access the financing they need. Enter transaction advisors: private sector firms that work with small businesses and investors, structuring and closing investment deals between them.

What does protecting watersheds have to do with the coffee market system? Surprisingly, a lot! Since 2014, Catholic Relief Services’ (CRS) Blue Harvest Program has worked with local partners in Honduras, El Salvador and Nicaragua to restore water resources and transform coffee livelihoods. The mountainous, coffee-producing areas of Central America provide drinking water for millions of people. As land degradation and climate change threaten coffee production and contribute to growing water scarcity, the link between the coffee market system and natural resource management has never been more important.

Countries in Latin America and the Caribbean are revolutionizing access to banking services and empowering millions of previously unbanked individuals. According to the latest data from the World Bank Findex, 73 percent of people in the region (excluding high-income countries) own a financial account—and the proliferation of digital financial services and financial technology (fintech) played an essential role in this growth.

Northern Kenya has significant opportunities for economic development, and access to finance is a key driver for the region’s sustainable growth. Unfortunately, the region is also burdened with negative perceptions, as Kenyan financial institutions deem it risky compared to other more economically developed parts of the country. Further, most plentiful and impactful Northern Kenyan investments are at the micro, small- and medium-sized enterprise (MSME) level.

This post was authored by Paul Newall, Senior Technical Director of Partnerships & Investment at ACDI/VOCA. 

This post was authored by Wyanie Bright, ACDI/VOCA's Chief of Party for USAID Kuza.

The USAID/World Council of Credit Unions’ (WOCCU) Economic Inclusion Project in March introduced to more than 100 representatives of Peru’s financial sector a formal guide that will help them identify the types of assistance refugee and migrant populations need to access formal financial services, and the best practices to help facilitate their financial inclusion.

The blog is authored by John Rachkara, Deputy Chief of Party, Rural Resilience Activity.

This blog is jointly authored by Dongnaan Swomen, Intervention Lead, Agri Insurance of the Rural Resilience Activity, Mark Akpan, Senior Advisor, Financial Services of the Rural Resilience Activity, and John Rachkara, Deputy Chief of Party, Rural Resilience Activity.

A nation’s ability to mobilize resources to combat and cope with climate change is primarily constrained by its resources and financial capacity, which vary dramatically across developing contexts.  While external sources of funding like the Green Climate Fund (GCF) are critical to meeting a nation’s Paris Agreement goals, they are often out of reach without domestic financial systems and processes to absorb such funds and use them productively.

By the USAID CATALYZE WEE team

By Natalie Alm, Communications Advisor, and Nicole Garcia, Senior Activity Manager, INVEST

By Kendahl Tyburski, Senior Gender Program Associate, Aspen Network of Development Entrepreneurs (ANDE)