The African Rural and Agricultural Credit Association
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
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
- Designing, organising and coordinating training programmes for
- 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:
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.
- Support of Rural Financial Development through Linkage Banking
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:
Presently the programme is being implemented in Zimbabwe, Nigeria, Burkina Faso,
Uganda and Cameroon. There are plans to extend the programme to more countries.
- 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.
- 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.
- 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.
- 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
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.
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,
Fax. 000 254 2 710082