The Alfredo Namitete Agroecology Credit System: A New Business Model That Supports Small-Scale Lending
Angela Hilmi ()
Additional contact information
Angela Hilmi: Centre for Agroecology, Water and Resilience, Coventry University, Ryton Gardens, Wolston Lane, Coventry, Warwickshire CV8 3LG, UK
Sustainability, 2019, vol. 11, issue 15, 1-20
A major obstruction in the development of sustainable agriculture is the weakness of the financial and banking sectors in supporting smallholder farming. While farmers need to invest in their farms, they struggle to find credit schemes adapted to their specific needs. This study explores the literature on a range of credit systems applied in different geographical and historical contexts to analyse the underlying drivers of their successes or otherwise. In light of this review, the study investigates a farmers’ association, Alfredo Namitete (AN), in Mozambique, offering a range of agroecology credit modalities. It is then assessed as to whether a new business model initiated with seed funding could be self-managed by the association itself and lead to greater autonomy. The AN pilot tested three schemes between 2015 and 2019. Based on the findings, i.e., better production, increased revenue and greater self-determination, the study combines elements for a new business model for small-scale lending. It concludes that to be effective, a credit scheme needs to meet several conditions simultaneously: believe in the genuine will to repay, abolish the lender–borrower distance, ensure a role for women in decision making, add a savings mechanism, combine individual and collective investments and, finally, reserve funds for solidarity and climate issues.
Keywords: Credit systems; autonomy; agroecology; smallholder; farmer; peasant; individual; collective; inclusive; investment; sustainable agriculture; finance (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:15:p:4062-:d:252345
Access Statistics for this article
Sustainability is currently edited by Prof. Dr. Marc A. Rosen
More articles in Sustainability from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().