Over the last 20 years, poor rural farmers in Nigeria have seen the benefits of community organization as a tool for local economic development under the National Fadama Development Project series. They have witnessed improvements in rural areas that have embraced a more inclusive and participatory model of local economic decision making. Many communities have come together under the umbrella of new institutional arrangements for addressing local issues. These arrangements have visibly improved economic conditions, boosted agricultural incomes, and helped reduce rural poverty.
This case study describes the history and business model of the Rural and Community Bank (RCB) network in Ghana, analyzes its performance, identifies key issues, and makes recommendations on the way forward. The study analyzes the service delivery and financial performance of the RCBs. Before the establishment of RCBs in the late 1970s and the subsequent expansion of other service providers into rural areas, access to institutional credit for farm and nonfarm activities was scarce. The main sources of credit were moneylenders and traders that charged very high interest rates.
Despite myriad challenges, Kenya has emerged in recent years as one of Africa’s frontier economies, with headline growth in the most recent decade propelling the country toward middle-income status. Less well understood is how risk dynamics associated with production, markets, and policy adversely impact sector performance, in terms of both influencing ex ante decision making among farmers, traders, and other sector stakeholders and causing ex post losses to crops, livestock, and incomes - destabilizing livelihoods and jeopardizing the country’s food security.