The growth of strong financial Institutions is undoubtedly linked to the sustainable development of a country. In Tanzania, agriculture is the economic and social mainstay for the majority of and employs over half of the total population. Therefore, financial institutions are the key to the development of the sector because they provide investment and empower poor farmers to increase their productivity and livelihoods. F or financial institution s to play their role in creating sustainable development in the agriculture sector , they must be able to effectively and efficiently manage risk through the establishment of loan underwriting and loan approval processes. Their loans underwriting and approval processes should establish minimum thresholds for approval. It is through those minimum requirements that management steers lending decisions toward planned strategic objectives and maintains desired levels of risk within the portfolio. Underwriting standards should not only result in responsible individual loans but should also establish acceptable portfolio risk levels.
Financial institutions are the intermediary between depositors and those in need of funds for their agricultural and non-agricultural businesses (creditors). Streamlining the underwriting and loan approval process for credit lending will increase access to finance for smallholders' farmers and ensure money continues to be available to grow the economy. Technologies such as databases, scoring systems, and loan rating matrices can greatly increase efficiency and effectiveness. Whether the underwriting and loan approval process is automated or not , the consistent inclusion of accurate and targeted information is necessary to reduce risk. Given the repayment of the loans is not always guaranteed and frequently depends on many external factors, lending can be a risky endeavor. Therefore, properly managing loans can have positive effects on financial institution performance , borrower success and economic growth.
Therefore, the Farmer-to-Farmer (F2F) Access to Finance program is recruiting a volunteer expert to assess and review the Loan Portfolio Management System s (LPMS) for a financial institution’s agricultural portfolio in Tanzania. The volunteer will also be expected to redesign the host organization risk and loan underwriting matrix and develop tools for risk detection and credit issue identification. The goal is to put something in place that can help management identify issues before they become problems thereby reducing the overall risk profile of the institution. Redesigning the risk and loan rating matrix will ultimately increase agriculture customer retention , penetrate the new markets through greater inclusion of youth and women and strategically improve the agricultural lending portfolio .
Objectives of the Assignment
Tasks to be Performed
In the U.S.
F2F Programmatic Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) Requirements:
This assignment will probably not have any pesticide issues to deal with. The volunteer must, therefore, do the following for a Type 3 assignment:
The volunteer shall review the F2F Environmental Brochure and be aware of F2F’s legal requirements regarding the provision of assistance for the procurement or use of pesticides. The volunteer shall not recommend or provide advice on specific pesticides
Expertise of Volunteer Requested
USAID and IESC encourage all F2F volunteers to participate in public outreach. An important objective of the program is to increase awareness of Americans’ good work in developing countries. Volunteers should select at least one outreach activity from the list below, to be completed within two months of return to the US:
Description of the Program
The International Executive Service Corps (IESC) serves as the lead implementer for the Farmer-to-Farmer (F2F) Access to Finance Program (2018-2023) to address deficits in the financial ecosystem hindering investment and growth in agriculture for individual farmers, as well as micro, small, and medium-sized enterprises through the delivery of volunteer technical assistance. IESC has designed a thematic F2F program to generate sustainable, broad-based economic growth and create jobs in the agricultural sector with a special focus on assistance to women and youth. IESC is joined by Grameen Foundation, with outstanding experience in digital finance and technology for the agricultural sector, to provide voluntary technical assistance and address the gaps in the financial ecosystem .
Funded by the U.S. Agency for International Development, F2F initiatives generate rapid, sustained, and broad-based economic growth in the agricultural sector. These programs also promote international goodwill, understanding of U.S. foreign assistance programs, and private involvement in development activities. Through the F2F Program, USAID facilitates the delivery of a broad range of U.S. agricultural expertise using U.S. volunteers who work with farmers, agricultural support systems and associations, and agribusinesses, in developing countries. The work of volunteers helps improve the quality of the agricultural sector workforce through training and advisory services provided to a wide range of agriculture sector actors. Volunteer assignments are designed to improve farm and agribusiness operations and agricultural systems.
Focusing on Kenya, Tanzania, and Sri Lanka, the F2F Access to Finance Program will work with local partner organizations and volunteer hosts to field pro bono experts from the U.S. agriculture, corporate, and banking sectors to address systemic capacity constraints for farmers and lenders in each targeted country and unlock finance for improved agricultural production leading to utilization of agricultural technologies and increased sales and incomes.