Warrantage

Credit warrantage, also known as storage credit or credit warranté, is a rural credit system whereby a farmers’ organization (FO) and/or its producer members obtain a loan by pledging their production (of millet, sorghum, rice, maize, groundnuts, etc.) as collateral, which is likely to increase in value.

Objectives :

• Fighting poverty and food insecurity;
• Enable producers to obtain remunerative prices for their production;
• Solve the main problems involved in marketing agricultural products;
• Promoting access to microfinance,

Prerequisites for implementing the approach

• Diagnostic study;
• Existence of a well-structured, functional umbrella organization /Scoop;
• Good knowledge of the area.

Implementation process

• Information/awareness-raising;
• Identification of the umbrella organization;
• Connecting players (producers, umbrella organizations, MFIs);
• Strengthening the technical capabilities of players.

Stakeholders in the implementation

• The producers;
• Umbrella organizations;
• MFIs.

Direct beneficiaries

• The producers, the umbrella organization

Indirect beneficiaries

• The people

Advantages :

• The simplicity of the approach;
• Public support;
• The motivation of the players (POs and MFIs) despite the difficulties encountered;
• Easy access to credit for producers;
• Local stock availability;
• Promoting income-generating activities;
• Mastering the management of household cereal stocks.