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Local Project Partners
German Project Partners
Germany’s Federal Ministry for Economic Cooperation and Development (BMZ)
09/2016 - 08/2018
Mexico is the second largest economy in Latin America. However, it only produces 53% of the foodstuffs required to feed its people. This poor food supply situation is due, amongst other things, to low levels of productivity and profitability in the agricultural sector. Other contributory factors include the limited use of technology and a lack of innovation. For small farmers and agri-businesses, having access to suitable financial products is vitally essential.
Launched on 1 September 2016, this project is designed to strengthen the agricultural sector and promote rural development in Mexico by securing the provision of adequate financial services and new market-oriented technologies. Ultimately, this is intended to enable low-income rural population groups, as well as agricultural and micro and small businesses (MSMEs) to stabilise their income and so improve food security.
Besides fostering rural development by improving the range of financial products and advisory services, the project also aims to raise the level of financial literacy amongst agricultural workers and MSME staff.
As a result, project activities are geared both to the framework conditions and to the respective target groups. At the macro level, the project is advising government institutions on the coordination of adequate promotion programmes and assisting government institutions and the rural financial sector to engage in effective cooperation. It is also advising savings banks in rural regions on the development of demand-oriented products and cashflow-based credit analyses. With regard to financial and entrepreneurial literacy, the project is coaching MSMEs based in rural and agricultural areas – an ideal context for applying the simulations and other practice-oriented materials developed by Sparkassenstiftung.
In the first few months, the project engaged in an intensive exchange with the various actors involved, including savings and cooperative banks in rural regions, universities that train agricultural engineers and government-run support schemes. Moreover, it exchanged experience on agricultural finance with Peruvian savings banks and conducted various studies in order to gauge the situation in the agricultural sector and investigate the level of supply and demand for financial services amongst small farmers and agricultural enterprises. In addition, the project is also exploring the options for improving financial services through digitalisation.