In this ‘MSME Champions’ interview, Cees van Rij of AgriGRADE explains how a new data-driven approach is helping to graduate agricultural cooperatives into more mature, investment-ready firms. ‘MSME Champions’ is a series of interviews capturing the expertise and experiences of individuals and institutions supporting enterprises in the missing middle of agriculture, as part of an advocacy campaign for the International Day for Micro, Small, and Medium-sized Enterprises (MSMEs) on 27 June 2024.
The International Day for Micro, Small and Medium-sized Enterprises (World MSME Day) is an opportunity to reflect on the key role of enterprises in the missing middle of agriculture. Please tell us why and how AgriGRADE supports their growth.
On World MSME Day, we recognize the pivotal role of cooperatives and other agri MSMEs in bridging the gap in agriculture, where AgriGRADE can play a crucial role in their growth. By systematically graduating cooperatives through tailored business development services (BDS), AgriGRADE enhances their professionalism, efficiency, and access to finance. Principles and ambitions of interoperability, scalability, and system transformation forming the pillars of a market-driven collaboration among a unique network of a business intelligence company, development partners, BDS providers, and financial service providers. Leveraging the expertise of specialized BDS providers, AgriGRADE empowers cooperatives at every maturity level, from basic to top-tier, fostering sustainable rural economies, improving food security, and driving local economic development.
Please describe some of the challenges your institution faces when lending to agricultural MSMEs in countries like Kenya and Tanzania. What are some of the innovative approaches you use to navigate them?
The cooperative landscape in countries like Kenya and Tanzania is vast and fragmented. E.g. in Tanzania, there are over 16,000 registered cooperatives, the majority of which are underperforming and lack access to services to strengthen their organization, let alone access to credit. By segmenting into four levels based on a set of KPIs for cooperative business development, the cooperative landscape becomes more structured, which allows for specialized technical assistance as well as financial services tailored per level. This data-driven, systematic and scalable way of working enables financial institutions to build a quality pipeline with lower risk and lower transaction costs, expanding exposure in the untapped and underserved markets.
What message would you like to share with donors, commercial banks and other players that hesitate to lend to agricultural enterprises?
Many cooperatives have the desire to become bankable. Considering the huge socio-economic potential of agriculture, including on-farm and off-farm job creation and the exponentially growing demand for healthy and nutritious food, investing in cooperatives and other agri-SMEs will be a reward for life for the development of a country as a whole.
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Meet the Champion
Cees van Rij is the Director of AgriGRADE, where he spearheads initiatives to elevate agribusinesses in emerging markets by improving efficiency, competitiveness, and sustainability. AgriGRADE employs a data-driven approach to professionalize agribusinesses and strengthen supply chains for long-term growth. Before AgriGRADE, van Rij held several leadership roles. At iCRA, he coordinated agribusiness training and advisory services, focusing on business development and relationship management in Africa and Latin America. His efforts nurtured a community of agribusiness professionals equipped with essential skills for agribusiness development.