AgResults Senegal Crop Storage Finance Challenge Project (2021-2026). Managed by Connexus, this Pay-for-Results prize competition incentivizes private sector actors and producer groups in Senegal to upgrade warehouses and develop storage-based finance schemes for smallholder farmers. The five-year project will use monetary prizes to encourage competitors to adopt warehouse receipts systems (WRS), engage with financial institutions (FIs), and strengthen relationships among actors in key value chains. Target crops include rice, maize, millet, cowpeas, onions, groundnuts, and cashews. The project will tackle the dual barriers of unsuitable storage infrastructure and limited financing options for smallholder farmers and will cultivate value chains that are more productive and more inclusive. In five years, the project is expected to increase smallholder profits by $9.7M and enable them to access over $35M in financing. By safely storing crops, farmers will reduce post-harvest losses, increase revenues by selling to premium markets, and improve household incomes and food security.
The project is being implemented in two phases each year:
- Phase 1 will award competitors up to $6000 per facility for upgrading their warehouses to achieve quality standards so that banks are willing to lend against commodities stored in warehouses. Competitor activities in this phase will include: Investing in warehouse upgrades, engaging farmers and FIs; and securing a license to participate from the Government of Senegal.
- Phase 2 will incentivize competitors by awarding them up to 5% of the total value of the crops they market using participating WRS services.
Client: AgResults; 2021 – 2026