· Despite the glut in liquidity in the financial sector (bank and none banks), SME financing particularly for small holder farmer or horticulture value chain actors remains very low due to lack of understanding of business structure, lack of business records and high risk profile of sector due to changing adverse and inclement weather pattern that requires the practice of climate  smart agriculture  · The propagation of Fintech solution and innovative finance mechanisms that is being introduced by the AFA is still at an infant stage. The AccLab will have to invest much time and effort to encourage target beneficiaries to embrace the use of the platform · Innovative FinTech solutions hold the key in addressing structural challenges that are institutional and require legislation or policy. FinTech solutions can create a new stream of support that might revolutionise the way mainstream player behave. If financing the horticulture value chain ranked as a high risk business for banks because of lack of understanding the business models across the value chain and how it is linked/business cycles, innovative fintech driven solutions can rewrite the narrative and spark a paradigm shift.

In our quest as the AccLab identify innovative financing mechanism for SME, particularly small holder farmers and other valuechain actors in the horticulture value chain, as well improve access to market, we were able to collaborate with the Africa Sustainable Finance Hub in Pretoria to put in place an AgriFinTech (AFA) initiative that is meant to improve supply chain financing for SME’s. The process of establishing the AFA entailed the assessment of the horticulture value chain to identify challenges (horizon scanning and ecosystem mapping) and opportunities to then package a comprehensive fintech solution that seeks to address the identified structural challenges. The identified constraints led to the design for context specific solution that builds on interventions previously laid down by other partners such as the EU in uplifting the horticulture value chain. The design of the AFA, was presented to the Head of UNDP (RR), and resources have now been availed to implement the AFA solution through the procurement of an international systems development firm to design the AFA and roll out the AFA. The AFA is now a national programme driven by the Centre of Financial Inclusion and the FinTech Working group sitting in the Central Bank of Eswatini where sand boxes for FinTech are regulated. New discussions have emerged, such as the non-availability of payment gateways for Eswatini and these discussions have been triggered by the AFA.

To establish the AFA, it was important to map out the challenges that are vexing horticulture value chain actors and the extent of market and finance access.  We had to convene key stakeholders cutting across the spectrum of farmers, logistics companies, cold storage, banks-nonbank financial institutions, off takers, regulators, government etc. Within these meetings, we were able to gather collective intelligence. Furthermore, we convened a series of focused group discussion through workshops to identify critical issues and map solutions. 

The selected innovative methods were critical because, the challenge is multisectoral. Protagonists of these challenges are the source of data and information. Designing an innovative solution requires one to give it a capability that will be responsive to the needs of the target beneficiaries.  It then becomes crucial to systematically harvest information from the beneficiaries so that the proposed solution adds value, otherwise the tool might be a white elephant.   As such, collective intelligence is central. The next phase of the the AFA which has been taken over by the CO will require prototyping because a FinTech solution will be developed and that will be a prototype. Finally, Fintech development is regulated by the central bank of Eswatini, they this must be done within the sandboxes of the central bank, hence the close collaboration with the FinTech Working group.

Designing the AFA requires a systematic understanding of how the all value chain actors interact. The innovation methods preferred should specifically enable the AccLab to solicit strategic information from these actors both individually and collectively. As such, it was important to engage value chain actors collectively to gather collective intelligence.  This process enabled the Lab and all involved to have a common understanding of the challenges but more importantly opportunities.  Because of the interconnectedness of the stakeholders or values chain actors, it was important to take a deliberate action of identifying the ways in which these challenges can be resolved. The team already had a proposed structure, but to make the AFA work, the value chain had to be involved in the co-creation process so that the value proposition of the AFA is responsive to the needs of each value chain actor. The gathering of collective intelligence and co-creation had to be done through consultative workshops where all value chain actors were actively participating in the discussions.  The next phase of the AFA is prototyping and this have been scaled up to the level of the country office.