IDEAS home Printed from https://ideas.repec.org/a/taf/eurjdr/v19y2007i1p136-155.html
   My bibliography  Save this article

Banking on Rural Innovation for Poverty Reduction: A Case Study of Value-chain Lending in Mozambique

Author

Listed:
  • Roberto Simonetti
  • Marc Wuyts
  • Anna Wuyts-Fivawo

Abstract

Coordination failures due to the absence of markets are a key constraint to the development of rural production in low-income countries. This paper shows how GAPI, a domestic financial institution in Mozambique, has contributed to poverty reduction through successful industrial ventures. GAPI's innovative lending strategy is based on the integration of supply of credit with the active improvement of the borrowers' ability to repay loans through the provision of business services, a value-chain approach to lending that focuses on the viability of whole networks of producers, and partnerships with non-market institutions that provide centres of specific competencies. Les défauts de coordination dus à l'absence de marchés sont des contraintes au développement de la production du secteur rural dans les pays en développement. Cet article montre comment GAPI, une institution financière du Mozambique, a contribué à réduire la pauvreté grâce à des entreprises industrielles. La stratégie de prêts innovante de GAPI est basée sur l'intégration de l'offre de crédit, avec des améliorations rapides dans la capacité de remboursement des prêts par la fourniture de services commerciaux. Cette approche des prêts en termes de chaîne de valeur se concentre sur la viabilité de l'ensemble du réseau de producteurs et sur les partenariats avec des institutions non marchandes que fournissent des compétences spécifiques.

Suggested Citation

  • Roberto Simonetti & Marc Wuyts & Anna Wuyts-Fivawo, 2007. "Banking on Rural Innovation for Poverty Reduction: A Case Study of Value-chain Lending in Mozambique," The European Journal of Development Research, Taylor and Francis Journals, vol. 19(1), pages 136-155.
  • Handle: RePEc:taf:eurjdr:v:19:y:2007:i:1:p:136-155
    DOI: 10.1080/09578810601144392
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/09578810601144392&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjdr:v:19:y:2007:i:1:p:136-155. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/FEDR20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.