cal language , Fon , the interest of ABCs – when one of the presidents of a vegetable-growing group called out : “ Young man , your explanation of ABCs is good , but don ’ t forget : without money , we will go nowhere and people do not want to finance vegetable growers . We have tried and tried but to no avail .” Indeed , we could foresee that gains would not come without pain , all the more since the actors were used to receiving short-term solutions like free inputs , subsidised equipment , etc . for challenges that are actually rather structural , such as lack of organisation of actors , and access to knowledge , to markets , to financial services , etc . Moreover , short-term solutions are not what 2SCALE stands for – it wants to promote an entrepreneurial spirit embedded into the local economy . But apart from this old-fashioned development model , we came up against a few more challenges . In Calavi for instance , yields were generally low because of technical problems ; more specifically , local seed had become susceptible to bacterial infections such as Ralstonia wilt , and there was insufficient water control as well . Many producers were unable to deal with these issues , and some had started to look for odd jobs in town to survive . This scenario was not at all attractive to bankers , especially as they have limited understanding of agriculture . Moreover , the risks are generally considered too high , and only some micro-finance institutions as well as a few “ loan sharks ” operate in the sector . Their interest rates are very high and their access conditions ( procedures , administrative documents and material guarantees ) are so difficult to fulfil that the majority of vulnerable actors such as women and young people are excluded .
Restoring confidence
In the face of these challenges , the number one priority was to restore confidence in the agricultural sector : confidence not only of the bankers , but also of the farmers , traumatised by their failures and uncoordinated actions . In partnership with the East-West Seed International ( EWIT ) company , we started supporting the set-up of 24 demonstration and learning sites on good agricultural practices in the major vegetable-growing areas of Benin . Beyond paying attention to the technical issues mentioned above , these sites have consolidated the partnership relations between farmers , input suppliers and vegetable traders , thus giving life to my discourse on ABCs . Also convincing were the substantial changes that came about for the vegetable farmers . For example , Bernadette and Danielle , two friends and tomato producers of Grand Popo and Calavi who adopted the popular technology package had yields of 59 tonnes per hectare , compared to only 12 tonnes in the previous crop year . These performances boosted the production at Abomey-Calavi and Grand Popo . The next step needed was to allow a large number of producers to access credit to seize the opportunities of the Nigerian market .
To that end , we negotiated and established a guarantee fund with ALIDÉ , a local micro-finance institution that is familiar with agriculture . This fund allowed for a lower interest rate , down from 24 % to 12 % per year , with a repayment schedule based on the crop production cycle . Instead of the material guarantees previously required , the producers negotiated and obtained the principle of collateral security . Supported by their coach , they set up management committees responsible for identifying potential beneficiaries , and to ensure correct use of the credit and its timely repayment .
Benefits from loans
Besides monitoring of the management committee , we organised learning cycles on topics like management , negotiation techniques , strategies of joint purchase and sale , etc . The coaching focused on strengthening business relationships between the actors , and greatly contributed to the actual functioning of the ABCs . Furthermore , exchange visits between ABCs allowed for a discussion on the management mechanisms and strategies and on the recovery of the loans set up in each farmers ’ organisation . Finally , in 100 % of the cases , the farmers ’ organisations settled all loans on time . Bernadette and Danielle did so as well . Over the past three years they have contracted and respectively repaid 5 million and 1.3 million CFA francs (€ 7,600 and € 2,000 ). With the income generated from their onion and tomato business , they expanded their fields and bought equipment including a sprinkler irrigation system . Bernadette expanded her field from 3 to 5 cultivated hectares and what is more , her five children have now been liberated from the chore of watering and can now spend more time on school studies . As for Danielle , she bought a motorbike . The success of this pilot phase strengthened the confidence between the vegetable growers and ALIDÉ . For the following season , the farmer organisations have negotiated directly with ALIDÉ without needing the intervention of 2SCALE coaches , and the allocated credit has increased quickly . Within two years ’ time , more than 6.5 million CFA francs (€ 1 million ) of credit have been provided to 921 producers . Of this group , 30 % are women – though only 21 % of that amount went to the women . This is one of my regrets . It is also the reason why we renegotiated with ALIDÉ around a new objective for the coming years : increase women ’ s and young people ’ s access to credit to allow for other Bernadettes and Danielles to emerge . More than an objective it is a new challenge that gives me wings .
-------------------------------------------------------------------- 5 Association de lutte pour la promotion des initiatives de développement .
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