Mesofinance Media - News #East Asia

The potential for agricultural insurance in the Philippines \ Niclas Benni \ UN Food and Agriculture Organization

Mon, 12 Feb 2024 10:09:43 -0500

This study evaluates the feasibility and potential benefits of introducing agricultural insurance in the Philippines’ Bangsamoro Autonomous Region in Muslim Mindanao. The intent is to enhance the resilience of small-scale farmers in BARMM against extreme natural events such as floods, droughts and hurricanes.

Mr Benni refers to prior research indicating that agricultural productivity in the region is not meeting its potential due to “limited access to credit and agricultural insurance, low farm mechanization and inadequate post-harvest facilities, inadequate irrigation, scant support to research and development, unstable extension service, and incomplete agrarian reform program implementation.”

When the idea of purchasing insurance was introduced to farmers in BARMM, some were receptive to the idea while others were not. The latter group may benefit from education on the potential benefits of insurance.

The Philippine Crop Insurance Company is a government entity that protects farmers against losses to crops - based on weather conditions or actual yields - as well as damage toassets such as harvesting and processing equipment. However, PCIC enrollments have been low in BARMM due to conflict in the region and lack of collaboration with local government units.

To improve farmers’ access to insurance, Mr Benni suggests: (1) reviewing the insurance projects of the World Bank and the Asian Development Bank that are ongoing elsewhere in the Philippines to see if they can be replicated in BARMM; (2) increasing outreach by PCIC in the region; and (3) piloting a index insurance product in BARMM that complies with Islamic principles.

This is a summary of a paper published by the UN Food and Agriculture Organization and written by Niclas Benni.

Summary by: Courtney Huang

SMF raises $45m for low-income housing in Indonesia

Thu, 11 Jan 2024 23:49:48 -0500

PT Sarana Multigriya Finansial (SMF), a financial institution owned by the government of Indonesia, recently raised the local-currency equivalent of USD 45 million through a combination of bonds and sukuk, which are similar to bonds and comply with Islamic law. Both instruments are certified as "social bonds," based on their being intended to fund housing for people with low incomes. The purpose of SMF, which is also known as Persero, is to provide retail lenders with wholesale funding for home mortgages.

AFIFORUM \ 23-24 January \ Bangkok, Thailand

Mon, 08 Jan 2024 22:40:13 -0500

The goal of the Asia Financial Institutions Forum (AFIFORUM) is to share methodologies and tools that can help in “building a resilient financial system that combines financial inclusion and private sector growth with sustainable development.” Some of the sessions on the agenda are: (1) Asia’s Transition to Net-Zero; (2) Scaling-up Blended Finance; (3) Digitalisation and the Future of Finance; and (4) Building More Resilient Economies Through Sustainable Land Use. The networking portion of the event will include opportunities to build partnerships to “catalyze debt raising, equity investments and technical assistance programs.” The primary sponsor of AFIFORUM is Cardano Development, a Netherlands-based NGO. The cost to buy a ticket in advance is EUR 545, while the price at the door will be EUR 695. For additional information, you may contact Borja Gutierrez at borja@afiforum.com or +31 (0) 20 5300 977.

Author: Tiyasha Sarkar

Mayani Partners with Globe Fintech to add lending to its services connecting farmers, fishers, resellers, consumers in the Philippines

Wed, 03 Jan 2024 17:56:05 -0500

Mayani, an agritech platform in the Philippines that connects buyers with people who farm and fish, recently added the Fuse lending service, which is owned by Globe Fintech Innovations, to allow farmers and fishers to borrow on a collateral-free basis. Potential borrowers will be able to share data on sales they have made via Mayani to help Fuse evaluate their ability to repay. The service will operate first in the province of Batangas. Mayani connects 175,000 buyers and producers of frozen and fresh food, such as fruits, vegetables, meat and seafood. Globe Fintech, which uses the trade name Mynt, is valued at the equivalent of USD 2 billion.

Author: Rohan Kumar Agarwal