Like many other microfinance institutions, Opportunity International has historically focused on urban areas in the developing world, where there are higher concentrations of people. However, as microfinance gained a foothold in cities across the world, the need to expand into unbanked rural areas became apparent. In 2008, Opportunity made a strategic decision to significantly increase our banking services in rural Africa.
Africa has potential to be the breadbasket of the world, yet it is a net food importer.
Not surprisingly, agricultural growth in Africa has more potential to reduce poverty than growth in any other sector. In sub-Saharan Africa, agriculture is a source of livelihoods for an estimated 65% of the population, the majority of whom are small-scale farmers. Still, only 4% of official development assistance goes to support agriculture in developing countries. Transforming farmers from subsistence growers to cash crop producers has the potential to not only move families out of poverty but also to help feed the planet!
To expand the number of bank outlets available in rural areas, Opportunity will make use of advanced delivery methods such as satellite branches, low-cost kiosks, mobile banks, ATMs and point-of-sale devices. In addition to the loans, savings and insurance products Opportunity already offers, we are developing partnerships with organizations that will help farmers improve crop productivity and expand market access for their crops.
Thanks to a $16 million grant from The Bill & Melinda Gates Foundation and The MasterCard Foundation, Opportunity is rolling out a full range of financial services, including crop-specific agriculture loans, in Ghana, Malawi and Uganda. Our goal is to have provided 1.4 million savings accounts and served 819,000 loan clients in these three countries by 2013, of which 135,000 of active loan clients will be farmers.