Information on

The African Rural and Agricultural Credit Association

The Organisation

The African Rural and Agricultural Credit Association (AFRACA) is an association of banks and financial institutions which are directly or indirectly involved in providing financial services for rural development.

It is a membership organisation open to all central banks, commercial banks,government institutions and other institutions involved in rural development.

AFRACA was formally established in 1977 and has a liaison status with the FAO of the United Nations.

Mission and Objectives

Its mandate is the promotion of rural development by: fostering cooperation among governments and financial institutions in the field of agricultural credit and banking; improving the planning and management of financial arrangements aimed at rural and financial development, and establishingappropriate relationship with the international organisations and donor agencies as well as act as a link between these organisations and AFRACA members.


Towards attaining its objectives, AFRACA is involved in the following activities:
  • Designing, organising and coordinating training programmes for members;
  • Support of rural financial development through the design and implementation of rural finance mechanisms e.g. Linkage Banking;
  • Support of rural financial development through organising rural finance policy workshops, seminars and conferences;
  • Organising and conducting Research and Studies in rural finance;
  • Organising exchange programmes and study tours under Technical Cooperation among Developing Countries (TCDC);
  • Information dissemination.

Activities in detail:

  1. Training

    AFRACA organises Training activities, seminars and workshops for the personnel of member institutions in rural and agricultural banking and in the application of modern banking technologies. It also promoteds in-service training programmes between member institutions as part of Technical Cooperation among Developing Countries (TCDC) programme sponsored by the FAO.

  2. Support of Rural Financial Development through Linkage Banking Programme

    This is the formal establishement of financial relationship between banks and self-help-groups for savings mobilisation and credit delivery. The main objectives of the programme are:

    • To facilitate and mobilise savings by self-help-groups so that they can generate their own part collateral and loan guarantees;
    • Provide delivery channels to groups;
    • Recycle locally generated funds to the areas from where they derive;
    • Provide a framework for a permanent business relationship between the groups and the banks;
    • To minimise transaction costs between the baks and the groups.
    Presently the programme is being implemented in Zimbabwe, Nigeria, Burkina Faso, Uganda and Cameroon. There are plans to extend the programme to more countries.

  3. Support of Rural Financial Development through Policy Exchange Forums

    The promotion of rural finance policy is a second major activity of the association. This is due to the realisation that rural financed intermediation can be made successful if supportive policies for the provision of rural finance among member countries are put in place. AFRACA organises workshops, seminars and conferences to promte the development and the diffusion of policy issues among member and non-member institutions. These are preceded by studies and research on financial policies and practices. The outcome of the policy workshops, seminars and conferences are disseminated to all the members. The Association has an Policy Advisory Group with the role of identifying and defining policy issues for further research has been put in place.

  4. Technical Cooperation among Developing Countries (TCDC)

    In recognition of the availability of diverse skills among AFRACA members which can be disseminated to others, AFRACA since 1982 developed its own form of TCDC. It is a form of "learning from each other". Over 100 persons from member institutions have criss-crossed the continent of Africa to study something of the other members operations. AFRACA pays the air ticket and a small subsistence allowance while the sending institution bears the rest of the cost. The receciving member draws up a programme of learning and bears cost of local transportation. AFRACA keeps a dossier of each member's specialisation which serves as a reference guide.

  5. Information Dissemination

    AFRACA publishes its news magazine four times a year and will start publishing an annual Rural Finance journal from the year 2000. AFRACA has published more than 15 reports of studies on topics and problems of common interest on Rural Credit and Banking, Savings Mobilisation, Self Help Groups Linkage Programme, Women in Agricultural Credit and Banking among others.

  6. Finance

    The administrative income of AFRACA is derived mainly from membership subscriptions and donations. Membership program and activities are paid for by the members. International organisations contribute substantially to the implementation of major programmes such as paying for consultancies and support of institution building.

  7. Membership

    Currently, AFRACA has nominal membership roll of 36 made up of central banks, commercial banks, development banks, cooperative banks, agricultural finance cooperations and rural finance institutions in 20 countries. These are:Burkina Faso: Caisse National de Credit Agricole (CNCA); Cameroon: CCEI Bank Cameroun, Nationale Cooperative D'epargne de Credit. Democratic Republic of Congo: Banque Central du Congo. Republic of Congo: Credit Rural du Congo (CRC) Ethiopia: Development Bank of Ethiopia. Gambia: Central Bank of The Gambia. Gabon: Bank Nationale de Credit Agricole. Ghana: Bank of Ghana, Agricultural Bank of Ghana, National Investment Bank, Ghana Cooperative Bank. Kenya: Agricultural Finance Corporation, Co-operative Bank of Kenya. Lesotho: Central Bank of Lesotho, Lesotho Agricultural Development Bank. Liberia: National Bank of Liberia. Mali: Banque National de Development Agricole (BNDA). Nigeria: Central Bank of Nigeria, First Bank of Nigeria PLC, Afribank Nigeria PLC, Nigeria Agricultural and Cooperative Bank Ltd, Bank of the North Ltd, Union Bank of Nigeria PLC, National Board for Community Banks, Family Economic Advancement Programme (FEAP), Peoples Bank of Nigeria. Senegal: Caise Nationale de Credit Agricole (CNCA). Sierra Leone: Bank of Sierra Leone. South Africa: Agricultural Bank of North West Province. Tanzania: National Bank of Commerce. Tunisie: Banque National Agricole. Uganda: Bank of Uganda, Uganda Commercial Bank, Uganda Women's Finance Trust Limited. Zimbawe: Agricultural Finance Corporation, Reserve Bank of Zimbabwe.

    Associate Members France: Nationale de Credit Agricole (CNCA). Italy: Giordano del Amore Foundation

    Executive Committee Members for 1999 - 2000

    Chairman: Mr Samcidine Dieng (CNCA Senegal) Vice Chairman: Mr. E. Mureithi (Cooperative Bank of Kenya) French West African Sub-Region: CNCA Burkina Faso and BNDA Mali. English West African Sub-Region: Bank of Ghana and Bank of the North Nigeria. East African Sub-Region Bank of Uganda. Central African Region: Central Bank of the Democratic Republic of Congo. Southern African subregion: AFC Zimbabwe. Secretary General: Mr. S. I. Ijioma. West African sub-regional alternate representatives: BNDA Mali and Bank of the North Ltd, Nigeria.

    Contact address:
    The Secretary General
    The African Rural and Agricultural Credit Association,
    P.O. Box 41378,
    Nairobi, Kenya
    Tel. 000-254-2-717911/715991
    Fax. 000 254 2 710082
    Email: afraca@users.AfricaOnline.Co.Ke

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