Cassava seed producers have expressed concerns about their inability to access loans and insurance to insure against risks.
They were speaking at the second annual cassava seed business summit organized by the Building an Economically Sustainable and Integrated Cassava Seed System Phase 2 (BASICS-II) project of the International Institute of Tropical Agriculture (IITA).
Mr. Charles Adeniji, President of the Industrial Cassava Association of Nigeria (ICSAN), noted that although the Central Bank of Nigeria, commercial banks and microfinance banks have funding programmes, they are usually burdened with administrative and procedural issues that make access difficult.
His words: “Generally, financing is available from the Central Bank of Nigeria. Commercial banks and microfinance banks have intervention funds. But there are barriers to access, high interest rates, short durations and often strict terms.”
According to Dr. According to Augusty Amajuoyi, Vice President of the National Association of Cassava Seed Entrepreneurs Network (NACSEN), poor access to credit has been a major challenge for the private sector-led cassava seed system.
“It's difficult for seed entrepreneurs to get loans because of the tough conditions given by banks asking for collateral and all sorts of things. Sometimes interest rates are as high as 28%,” she lamented.
A summit on the theme: “Financing and Insurance Opportunities for Sustainable Growth of Cassava Seed System” was held practically recently and was attended by over 130 entrepreneurs and stakeholders.
The summit included two panel sessions. The first part dealt with “Entrepreneurship of cassava stalk production: New activities of cassava entrepreneurs and challenges affecting the sustainability of the cassava seed system” and the second part focused on “Exploring financing options for cassava entrepreneurs in the cassava value chain. "
Stakeholders highlighted the importance of financing and insurance for cassava seed businesses and tasked government and financial institutions to address financing bottlenecks.
In his welcome remarks, Temitope Adegoroye, Managing Partner of Sahel Consulting, convener of the summit and one of the BASICS-II implementing partners, said finance and insurance are key to sustainable growth in the cassava seed system. He called for continued collaboration between stakeholders in the industry to specifically promote and explore financing and insurance options for seed producers along the value chain.
“A sustainable cassava seed system would catalyze the potential of cassava given the country's position as the top producer of the crop in the world,” he said.
In a keynote address, the Permanent Secretary of the Federal Ministry of Agriculture and Rural Development (FMARD), Mr. Ernest Umakhihe, encouraged farming businesses to integrate insurance into their business strategies.
Mrs. Sugra Mahmood, Deputy Director, Irrigation, Federal Ministry of Agriculture, who represented the Permanent Secretary, emphasized the need to create awareness on the business prospects of cassava seed multiplication and the importance of partnership and collaboration to support the growth of a sustainable cassava seed system. .
Mr. Ayodele Olaleye, Director, Agricultural Insurance, Veritas Kapital; Mr. Olushola Obikanye, Group Head of Agriculture, Sterling Bank; and Mr. Stephen Magige, Country Manager of Mennonite Economic Development Associates (MEDA) Tanzania, spoke about the various financing and insurance options available to stakeholders in the cassava value chain. They emphasized the importance of improving farmers' access to financial and insurance services.
Dr Godwin Asumugha, Acting Executive Director, National Root Crops Research Institute (NRCRI), Umudike, Prof Lateef Sanni, Project Manager, IITA BASICS-II, and Mr Paul Enecko, Zonal Manager, Mennonite Economic Development Associates (MEDA) in Tanzania explained, were steps taken to develop cassava seed system in Nigeria and Tanzania. Sir. Francis Chia, president of the National Association of Cassava Seed Entrepreneurs Network (NACSEN), said the creation of an association for cassava entrepreneurs, capacity building and promoting access to high-quality planting materials were key to growth in the cassava seed system.
Dr. In his closing remarks, Phillip Ojo, Director General of the National Agricultural Seeds Council (NASC), expressed optimism about the catalyzed growth of the cassava value chain. It required continuous collaboration of stakeholders towards a robust and vibrant seed system.
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