1.2 Contact details of resource persons and institutions involved in the assessment and documentation of the Approach

Name of project which facilitated the documentation/ evaluation of the Approach (if relevant)

Integrated Initiative for Economic Growth in Mali (IICEM)

Name of the institution(s) which facilitated the documentation/ evaluation of the Approach (if relevant)

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (GIZ) - Germany

1.3 Conditions regarding the use of data documented through WOCAT

When were the data compiled (in the field)?

01/07/2012

The compiler and key resource person(s) accept the conditions regarding the use of data documented through WOCAT:

Ja

2.1 Short description of the Approach

The loan guarantee allows producers to better manage their production costs when they first begin operating a scheme.

2.2 Detailed description of the Approach

Detailed description of the Approach:

Guaranteeing loans enables producers to access credit. In this practice, IICEM acts as a facilitator, supporting the process through activities ranging from monitoring loan repayment to forwarding applications to banks following validation. Cooperatives and agribusinesses are developed and their activities are monitored by IICEM and its NGO partners in order to re-engage with the banks and repay awarded loans. Subsequently, supply chains are set up on the back of training delivered by marketing specialists and business development agents, which helps connect up the key players (processing companies, merchants, cooperatives, suppliers, credit services). IICEM remains responsible for maintaining this relationship by providing advice on processing (quality), trade (cost calculation) and supply (quality).
The loan guarantee allows producers to better manage their production costs when they first begin operating a scheme. The project acts as guarantor to the bank for the sum of the loan requested by producers.
The producers register their need for a loan to safeguard their crops, detailing the parameters to take into account. The loan application is then forwarded to IICEM and its NGO partners. IICEM analyses the loan application in terms of the irrigated area and the yields involved to ascertain the producer’s capacity to repay the loan and to determine whether the producer can meet the farming costs required to see through the growing season. After analysing the loan application, IICEM writes a letter of recommendation that the producers attach to their application for sending to the bank. The project acts as guarantor to the bank for an equivalent amount that it always keeps available. The bank will not access these funds without prior authorisation. Neither, however, is it obliged to award loans to producers holding a letter of recommendation from the project. Once the loan is granted, the project supervises producers to ensure loan repayments to the bank
are well managed. When loans are not repaid in full, the project provides a detailed report on the crop yield for the season in question to enable producers to take out further loans to compensate for the poor yields of that season. If the bank declines a loan extension (in the case of a default), the project then fulfils its role as guarantor, repaying any shortfall.
Producers declare their loan requirements to safeguard their crops. NGO partners act as intermediaries relaying requests, provide training and carry out monitoring. IICEM analyses loan requests and then draws up a guarantee certificate for the bank’s consideration. The bank assesses the farming organisation’s loan request.

2.5 Country/ region/ locations where the Approach has been applied

2.6 Dates of initiation and termination of the Approach

2.7 Type of Approach

• project/ programme based

2.8 Main aims/ objectives of the Approach

The loan guarantee allows producers to better manage their production costs when they first begin operating a scheme.
This practice enables farming organisations to improve on how they repay their loans and, thereby, increase their creditworthiness with the banks. Besides the IICEM guarantee, projected levels of production serve as an additional guarantee for the bank.
The SLM Approach addressed the following problems: lacking access to credit

2.9 Conditions enabling or hindering implementation of the Technology/ Technologies applied under the Approach

3.1 Stakeholders involved in the Approach and their roles

3.2 Involvement of local land users/ local communities in the different phases of the Approach

	Involvement of local land users/ local communities	Specify who was involved and describe activities
initiation/ motivation	passive
planning	passive
implementation	interactive
monitoring/ evaluation	passive
Research	passive

3.4 Decision-making on the selection of SLM Technology/ Technologies

Specify who decided on the selection of the Technology/ Technologies to be implemented:

• SLM specialists alone

Explain:

Decisions on the method of implementing the SLM Technology were made by by SLM specialists alone (top-down)

4.1 Capacity building/ training

Was training provided to land users/ other stakeholders?

Ja

Specify who was trained:

• land users

Form of training:

• courses

Subjects covered:

Subsequently, supply chains are set up on the back of training delivered by marketing specialists and business development agents, which helps connect up the key players (processing companies, merchants, cooperatives, suppliers, credit services).

4.2 Advisory service

Do land users have access to an advisory service?

Ja

Specify whether advisory service is provided:

• at permanent centres

Describe/ comments:

Key elements: processing (quality), trade (cost calculation), supply (quality); IICEM provides advice on processing (quality), trade (cost calculation) and supply (quality).
Advisory service is quite adequate to ensure the continuation of land conservation activities

4.3 Institution strengthening (organizational development)

Have institutions been established or strengthened through the Approach?

• yes, moderately

Specify the level(s) at which institutions have been strengthened or established:

• local

Specify type of support:

• financial
• capacity building/ training

4.4 Monitoring and evaluation

Is monitoring and evaluation part of the Approach?

Ja

Comments:

economic / production aspects were regular monitored by project staff through measurements
loan repayment aspects were regular monitored by project staff through observations
monitor producers benefiting from loan guarantees aspects were regular monitored by project staff through observations
There were no changes in the Approach as a result of monitoring and evaluation
There were no changes in the Technology as a result of monitoring and evaluation

4.5 Research

Was research part of the Approach?

Ja

Specify topics:

• economics / marketing

5.1 Annual budget for the SLM component of the Approach

If precise annual budget is not known, indicate range:

• > 1,000,000

5.2 Financial/ material support provided to land users

Did land users receive financial/ material support for implementing the Technology/ Technologies?

Ja

5.4 Credit

Was credit provided under the Approach for SLM activities?

Ja

6.1 Impacts of the Approach

6.2 Main motivation of land users to implement SLM

6.3 Sustainability of Approach activities

Can the land users sustain what has been implemented through the Approach (without external support)?

• uncertain

6.4 Strengths/ advantages of the Approach

Strengths/ advantages/ opportunities in the compiler’s or other key resource person’s view
When loans are not repaid in full, the project provides a detailed report on the crop yield for the season in question to enable producers to take out further loans to compensate for the poor yields of that season.
This practice enables farming organisations to improve on how they repay their loans and, thereby, increase their creditworthiness with the banks. Besides the IICEM guarantee, projected levels of production serve as an additional guarantee for the bank (How to sustain/ enhance this strength: To secure a high level of loan repayment, it is necessary to closely monitor the producers benefiting from loan guarantees)
Cooperatives and agribusinesses are developed and their activities are monitored by IICEM and its NGO partners in order to re-engage with the banks and repay awarded loans. Subsequently, supply chains are set up on the back of training delivered by marketing specialists and business development agents, which helps connect up the key players (processing companies, merchants, cooperatives, suppliers, credit services).

7.1 Methods/ sources of information

7.2 References to available publications

Title, author, year, ISBN:

Manual of Good Practices in Small Scale Irrigation in the Sahel. Experiences from Mali. Published by GIZ in 2014.

Available from where? Costs?

http://star-www.giz.de/starweb/giz/pub/servlet.starweb