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Agricultural Leasing Market Scoping Study for Sub-Saharan Africa
The study finds that while agricultural leasing is a preferred asset financing method in developed markets, it remains nascent in sub-Saharan Africa due to systemic market failures. Key barriers include high down payment requirements (20-40%), a lack of secondary markets for used equipment, and informational asymmetries that lead financial service providers to perceive agriculture as high-risk. Demand is limited by the predominance of smallholder subsistence farmers and low financial literacy. The report identifies Ghana, Kenya, and Zambia as high-potential markets and recommends targeted technical assistance for banks, awareness campaigns for farmers, and the creation of risk-sharing funds to reduce down payment barriers.
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Document type: Report