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Banking on rural innovation for poverty reduction: A case study of value-chain lending in Mozambique

Simonetti, Roberto; Wuyts, Marc and Wuyts-Fivawo, Anna (2007). Banking on rural innovation for poverty reduction: A case study of value-chain lending in Mozambique. European Journal of Development Research, 19(1) pp. 136–155.

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Coordination failures due to the absence of markets are a key constraint to the development of rural production in low-income countries. This paper shows how GAPI, a domestic financial institution in Mozambique, has contributed to poverty reduction through successful industrial ventures. GAPI’s innovative lending strategy is based on the integration of supply of credit with the active improvement of the borrowers’ ability to repay loans through the provision of business services, a value-chain approach to lending that focuses on the viability of whole networks of producers, and partnerships with non-market institutions that provide centres of specific competencies

Item Type: Journal Article
ISSN: 1743-9728
Extra Information: The article is based on research commissioned and funded by UNCTAD, which resulted in a background report that was used in the 2006 Least Developed Countries Report
Keywords: Mozambique; Finance and development; GAPI; Low income countries; Value chains
Academic Unit/Department: Social Sciences > Economics
Social Sciences
Mathematics, Computing and Technology > Engineering & Innovation
Mathematics, Computing and Technology
Interdisciplinary Research Centre: Innovation, Knowledge & Development research centre (IKD)
Item ID: 8435
Depositing User: Roberto Simonetti
Date Deposited: 13 Jul 2007
Last Modified: 14 Jan 2016 16:38
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