National Agri-Finance Accelerator (NAFA)
Core Function
NAFA provides refinancing and risk-sharing instruments as an incentive package to Ethiopian FIs extending credit to agricultural borrowers. It is a highly catalytic intervention designed to scale up private sector funding, driving Ethiopia’s transition to a private sector-led growth model.
Strategic Rationale
Why this wholesale mechanism is critical for the national scale-up of agricultural finance.
Increasing Loanable Funds
NAFA refinances qualifying agricultural loans so PFIs receive access to additional capital to sustainably scale up agri-lending volume.
Sharing Lending Risk
Absorbs portfolio risk across qualifying loans, granting PFIs the institutional confidence to reach new borrowers, value chains, and locations.
Strengthening Loan Quality
Incentivizes well-designed, customized agri-finance products aligning with harvest cycles to ensure the sustainability of scale-up efforts.
Inclusive National Targeting
Ensures affordability and directs focus toward un(der)-served sectors so that the national agri-finance scale-up remains highly inclusive.