News

A "new" approach to bringing together key players in an agricultural sector to learn, share and act on critical knowledge is changing the maize value chain in Benin.

In Couffo, a region some 144 kilometers from Benin's economic capital Cotonou, farmers, researchers, extension services, microfinance institutions and local authorities are collaborating in a way they've never done before, with far-reaching impacts on livelihoods.

Although maize has been grown for several decades in this region of Benin, farmers used to work in isolation and had little or no contact with financial institutions.

But things have changed a great deal since 2018, with the arrival of a project aimed at improving access to financing for players in the marketing link in the maize sector. Three West African countries are implementing this project, better known as AMAFINE. These are Benin, Burkina Faso and Côte d'Ivoire. Funded by the West African Economic and Monetary Union (UEMOA), the project is coordinated by CORAF.

More credit, fewer defaults

As players in the marketing link of Couffo's white maize value chain interact more and more within the framework of what experts call innovation platforms, many other producers, processors and traders can now access the credit that is vital to the expansion of their activities. Trust has been built up through working together on the platform. This trust has been built up by respecting contractual clauses, especially those concerning loan repayment terms, which were often lacking in the past. As a result, microfinance institutions have been much more willing to finance the platforms' activities. Thanks to this collaboration, the players see the convergence of their common interests.

An innovation platform is a technology dissemination approach used by CORAF in West and Central Africa to engage value chain stakeholders.

In the Couffo region of Benin, three players have played a central role in this "revolutionary" approach to access to essential credit. They include the Plate-forme d'innovation pour le maïs blanc de Couffo, Pebco-Bethesda, a non-governmental organization focused on access to microfinance, and the Caisse locale de crédits agricoles mutuel (CLCAM).

Thanks to this collaboration, the number of credit applications and loan agreements has increased. Platform members have signed 25 loan applications with Pebco-Bethesda and a further 10 with CLCAM.

In all, more than 200 members of the Aplahoué innovation platform have had access to financial credits totalling over 40 million FCFA, according to Pebco-Bethesda data.

"Our friends and partners pay their loans on time. We have no experience of overdue payments. This is mainly thanks to the implementation of the innovation platform," explains Mr. Etienne Sikira Tohoué, Pebco-Bethesda's Branch Manager in Azové.

Pebco-Bethesda is a member of the Aplahoué white corn value chain. The structure is a full member and can therefore participate in the platform's activities, where it offers coaching on business plan development and related issues.

"Access to credit has become much easier with the creation of innovation platforms. Our income has improved, enabling us to pay our children's school fees and our healthcare bills," admits Pauline Atui, a corn processor in Toviklin, Benin.

"What you see today are microfinance institutions going to innovation platform members to open bank accounts. This wasn't possible before the project arrived," explains Robert Sodegla, corn farmer and president of the Djakotomey innovation platform.

"We have good relations with microfinance institutions, which gives us access to credit to develop our activities. We work closely together and complement each other. They are interested in our requests and we are interested in their offers. This gives us more credibility, even as producers. That's a good thing."

AMAFINE has opened up new windows of opportunity for all players (direct and indirect) in Benin's maize sector, and improved the partnerships that existed between them.

"This is probably the main achievement of this project, and we're delighted with the result," says Dr Cheikh Ahmadou Bamba NGOM, AMAFINE project focal point at CORAF.