Development Bank of Belarus has instruments to support the grow of agriculture in Sub-Saharan Africa.
More than half a billion Africans, 65-70 per cent of the population (more than 80 per cent in some countries), depend on small or micro-scale farming as their primary source of livelihood. The agricultural sector accounts for 20-40 percent of the continent’s Gross Domestic Product (GDP), and is projected to be a $1 trillion industry by 2030 but receives less than 3% of banking credit.
The productivity of African agriculture is also among the lowest in the world. According to the World Bank, meeting Africa’s demand for food requires $80 billion in investments annually. Access to appropriate financial services is therefore vital to realizing Africa’s agricultural potential.
Africa is in a hurry to begin diversifying away from commodities to value added products. Belarus could be the continent’s partner in that drive and that the required technology could come from Belarus.
Building international cooperation in order to promote Belarusian export and attract foreign investment as well as credit resources to the economy of the country is one of the priorities of the Development Bank of the Republic of Belarus.
Since 2016 Development Bank of the Republic of Belarus (DBRB) is determined the sole channel for granting loans with state support to non-residents for export financing. In 2019 the minimum threshold for export loan that could be provided by DBRB was cut from $1.0mn to $0.2mn. DBRB is the only institution in Belarus providing export loans with the cover of Eximgarant of Belarus, the national export credit agency.
Within the period from 2014 till 2019 DBRB granted export loans in total amount of $1.39 billion.
A&G as a partner of diverse Belarusian technology corporations is able to secure loan in agriculture sector for:
- The needs of farmers and entrepreneurs
- The transactions between the actors along
the value chain
- Infrastructure needs and
- Generating knowledge to support the sector
A&G can play an important role in agriculture finance not only for small farmers or enterprises, but primary for promising government initiatives and programs for sustainable development in agriculture as a eradication of poverty and creating jobs, particularly jobs for women.