Author: Audrey Joubert, Advans International.
Across Africa, agriculture contributes 32 percent to Africa’s GDP and employs 65 percent of the labour force on the continent, according to the World Bank. That notwithstanding, the people who drive the sector, smallholder farmers, rural entrepreneurs, and cooperatives, are part of the most financially excluded communities on the continent.
Data from the International Telecommunications Union (ITU) shows that in 2024, internet usage in African urban areas reached 57 percent, but only 23 percent in rural areas, creating the largest urban-rural gap in the world. This limited connectivity, along with geographical isolation and low financial literacy, results in millions of farmers with little to no access to mainstream credit or financial services.
Without affordable and reliable credit, many farmers struggle to invest in irrigation, essential equipment, seeds and fertiliser. Persistent economic fluctuations, including inflation that raises the cost of inputs and volatile market prices for produce, further erode already thin margins. And where local processing and transformation capacity is limited, farmers are forced to sell raw commodities at lower prices, missing out on added value. Without adequate savings or insurance, a single flood, drought, or price shock can wipe out years of effort, fundamentally undermining both livelihoods and broader rural development across Africa.
To overcome this challenge, financial inclusion in rural areas must go beyond access to accounts or credit. It must focus on building resilience, and that’s where microfinance institutions are stepping in to reengineer the future of rural financial inclusion across the continent.
Designing the right approach: The case of Advans’ High-Tech, High-Touch
Traditional banks have long struggled to serve rural populations because of high operational costs, isolated communities, and the informal nature of farming incomes. The rise of digital finance has not significantly changed the narrative, as few farmers still have reliable internet access. With a 26 percent increase in agricultural loans in just one year, Advans, a leading microfinance group active in several African countries, recognized this early on, and adopted a high-tech, high-touch approach in rural areas.
First, by partnering with cooperatives and village associations, Advans built a model rooted in proximity and in-person relationships, to inform, educate, and share risk. Technology was then introduced gradually to facilitate transactions and loan repayments, and to provide school loans. This expansion is driven by digital innovations tailored to rural realities. For instance, in Ghana, Mobibank, a USSD-based platform, has become the primary channel for rural loan repayment, allowing clients to transact without internet access. In Côte d’Ivoire, Advans Mobilité offers mobile banking features that enable farmers to check balances and manage finances through basic feature phones.
In rural Africa, cooperatives have proven to be the key intermediaries between microfinance institutions such as Advans and communities. In Côte d’Ivoire, for example, cocoa farmers can expand their plantations thanks to loans secured through their cooperatives and support from Advans Côte d’Ivoire. The story of Herve, one such farmer, illustrates how financial institutions can build with existing community groups.
“Through the 700 cooperatives and village associations (AVEC) we partner with, we reach and serve close to 40,000 farmers; not only in the cocoa value chain, but increasingly in other farming activities such as corn, pineapple, mango, and rice. We are also exploring additional value chains,” says Albert Dah, Agriculture Director at Advans Côte d’Ivoire.
The impact of such a collaborative approach is also evident in neighbouring Ghana, where Advans worked with women’s cooperatives in the shea butter value chain, offering both financing and financial education. In two years, more than 2,000 cooperative leaders have been trained in financial management and savings, leading their members to reinvest profits, strengthen their businesses, and gain greater financial independence.
A New Urgency: Climate Change and Agricultural Resilience
The challenge of rural development is now inseparable from the challenge of climate change. Rising temperatures, unpredictable rainfall, and floods are disrupting production across the continent. In Côte d’Ivoire, the world’s largest cocoa producer, output for the 2024/25 farming season is estimated to have dropped to 1.7 metric tonnes due to heat stress, drought, and pests. In Tunisia, prolonged drought and water scarcity are threatening key crops such as olives and dates.
Climate change is not only an environmental threat, but it is a financial one. For farmers, it means unstable incomes and higher debt risks. For lenders, it demands new tools to secure both livelihoods and portfolios.
Microfinance institutions are emerging as vital drivers of climate resilience. Advans Tunisia, for instance, has developed an individual loan called “Crédit Saba” enabling smallholder farmers to borrow up to €13,000, with a flexible repayment plan adapted to the seasonality of their activities and their cash flows, as well as a grace period in case of an extreme climate event. As a result, more than one in two Tunisian clients say they feel more prepared for a future climate shock thanks to their loan from Advans, and 30 percent talk about purchasing and installing irrigation systems.1 Agricultural finance now represents one-third of Advans Tunisia’s portfolio.
Advans Côte d’Ivoire takes a comprehensive approach to helping farmers adapt to climate risks. The institution has provided training to over 1,000 farmers on managing hazards, from diversifying crops to adopting agroforestry practices. One key initiative, the Agroforestry Credit program, offers loans through four partner cooperatives to fund agroforestry projects, The project is supported by AFD and benefits from technical assistance from the NGO AVSF.
In addition, farmers are gaining access to climate index insurance through a partnership with AssurTech OKO. Following a pilot phase that tested two distinct insurance models, the new solution now protects more than 800 producers through their respective cooperatives. Payouts are automatically triggered by low rainfall. The coverage period runs from October 2025 to March 2026, aligning with the seasonality of agricultural activity.
Building a Resilient Future for Rural Finance
The lesson is clear. Africa’s agricultural growth requires a rethink and redesign of rural financial solutions to ensure access to financial services even in areas with limited connectivity. With a strategy rooted in local realities, Advans combines technology with proximity—whether through individual support in Tunisia or by leveraging cooperative and village association networks in Côte d’Ivoire.
Rural financial inclusion is advancing. Advans’ High-Tech, High-Touch approach illustrates how to drive it forward, combining innovation, proximity, and partnerships to help farmers move toward a more resilient future.
1 60 Decibels survey conducted with 280 clients in Tunisia in 2024.
This blog was first published by Advans International.
Photo credit: Advans International.
Audrey Joubert is a Business Expert at Advans International, specializing in agrifinance, digital financial services, and deposit products. She supports Advans affiliates in defining their strategies and in the design and deployment of new projects. Prior to this role, Audrey spent three years as a Project Manager at Advans Côte d’Ivoire, where she notably contributed to a financial inclusion program within the cocoa value chain. She holds a Master’s degree from ESCP Europe.
