Providing local financial services

Small producers benefit from the support of the Inclusive Agricultural Value Chain Development program (Défis), which relies on village community self-help groups (GVEC).

Since 2019, the Défis program, supported by the International Fund for Agricultural Development (IFAD), has provided access to the benefits offered by 686 GVECs in the country to 13,190 family farms (EAF). This program offers both local financial services such as savings and credit, as well as non-financial services such as financial education.

GVECs are made up of 15 to 25 individuals who pool their savings to provide internal loans, fostering collective financial independence. Women and other small producers who do not have access to traditional microfinance institutions benefit from these groups.

During its first cycle in Manakara, the GVEC Miaradia distributed a historic amount thanks to meticulous resource management. GVECs have also reduced their interest rates to encourage greater financial participation. According to the Défis program report, « These groups encourage their members to open accounts with microfinance institutions and regional banks, with rates dropping from 9 % to 8 % ».