ACCESS to financing by small farmers is the key constraint in developing agriculture, a top executive of World Bank (WB) said.
Victoria Kwakwa, WB-East Asia and the Pacific Region vice president, said that in her recent visit in the Philippines especially on Mindanao, lack of financing to small farmers is one of the challenges in improving agriculture.
Kwakwa met with officials and representatives from the Mindanao Business Council (MinBC) and Mindanao Development Authority (Minda) last Friday, September 16.
"We are trying to hear their views on some of the main constraints in getting private investments and also supporting agriculture," she said.
She also said that the private sectors can play a role as a means of creating jobs in Mindanao to support the poverty reduction agenda. The World Bank executive also laid out that in their meetings, the importance of having a value chain approach in agriculture was also stressed.
"You should look at different aspects of the chain form land to production, technology, infrastructure, connectivity, getting the produce once available to market, exports, finding these markets and how you are able to transfer your products at a cost-effective way," Kwakwa said.
She added that as access to financing came out as a great concern, the public and private sector arms of WB are working together and will continue to strengthen measures and support the Philippines to address such concern.
The Small Business Corp. (SBC) is eyeing to set aside P10 million as venture capital for cacao producers. SBC is an attached agency of the Department of Trade and Industry, which is now the leader in small enterprise development financing and small credit delivery systems nationwide. The group is now looking for a partner for the venture capital scheme and they are eyeing Malagos Chocolate as a viable partner.
"We have fund to support businessmen usually those not catered by the banks," said Bartholomew Brillo Reynes, president and chief executive officer of SBC.
Reynes said that they are willing to put the common fund or common equity. The scheme, Reynes explained, is different from loans as the growers do not need to pay regularly. (ASP)