The Brexit vote, which left global markets poorer by more than US$2trillion, is expected to bring major shifts in the international development finance landscape. Access to development finance is crucial for growth, food security, poverty alleviation and mainstreaming of marginalised populations.Dependence on foreign aid has waned in emerging markets and has been replaced by development finance, better able to cater for debt and equity financing and weather-related risks.Historically, lenders have shown little appetite for the risks associated with agriculture. Lending for investments in agriculture, especially for small and emerging farmers, is scarce. According to the International Finance Corp, less than 1% of commercial lending is directed at agriculture.The poor understanding of the agricultural sector’s risks and opportunities deprives it of funds to drive the economic prospects of the participants. In SA, there are approximately 450,000 small and emerging farmers. Access to c...
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