Value Chain Finance Role Play Training

  • Date Posted: June 2, 2010
  • Authors: Catherine Johnston, Anita Campion
  • Organizations/Projects: Chemonics International
  • Document Types: Guidance, Tool, Other
  • Donor Type: U.S. Agency for International Development
Value chain analysis often identifies a lack of access to credit as a key constraint. Hence, USAID’s Microenterprise Development Office studied a number of value chains and how access to finance (or lack of it) can help or hinder firm upgrading and competitiveness. This training activity is based on findings from studies of the Peruvian artichoke and Ugandan sugar cane value chains.
This training explores how and why finance is extended within a value chain (direct value chain finance), as well as why financial institutions do or don’t provide credit to the various value chain actors (indirect value chain finance). It examines why finance may be available to certain agricultural value chain actors, but not to others, as well as how the local country environment can affect the availability of finance to the value chain, from within the value chain as well as from financial institutions. Participants will develop a better understanding of the risks and opportunities impacting an agricultural value chain and its access to finance; how direct value chain finance differs from indirect value chain finance in terms of decision making, information and product design; and the role of contracts in facilitating finance and interfirm cooperation.
In addition to this Value Chain Finance Role Play Training activity, please note that you can access the PowerPoint slides for this training here

Other Key Resources:
  • microREPORT #73 — A Study of Value Chain Finance in Peru
  • microREPORT #88 — Value Chain Governance and Access to Finance
  • microNOTE #37 - Value Chain Governance and Access to Finance