Harbu Micro Finance Institution: Established in 2005 and is affiliated to Facilitator for Change (NGO). Harbu MFI aims at boosting agricultural productivity and agricultural marketing by supporting value chain development and access to financial services. Harbu currently operates in 13 Branches Having 17,000 clients operationally sustainable with OSS by 127% and the PAR to the level of <1%

Facilitator for Change (FC): a national NGO established in 1998 that works with disadvantaged communities overcome their poverty. It focuses on enabling them to improve their livelihoods using their own resources, skills and experiences, with minimum external support.

FC currently has eight projects in Oromia and Amhara states in Ethiopia. It is heavily involved in value chain promotion, especially on soybeans. So far it has organized about 5,000 farmers into 64 farmer marketing organizations. It promotes soybean value chain in Jimma zone.

MAIN CHAIN SUPPORTERS

Smallholder farmers: Soya producers in Kersa, Tiro Afeta and Omo Nada of Jimma zone

Farmers’ marketing organizations (FMOs): 30 FMOs consisting of 2,570 (18% female)

Women Groups (CLA): Women groups organized into SHG/CLA in Jimma town (219 members)

Tsehaye Abebe: An entrepreneur in Jimma town

Consumers: Jimma University, cafeterias and restuarants

OVERVIEW OF MAIN CHAIN ACTORS

FUNCTIONS AND CHAIN ACTORS

Processing and wholesaling

Collection and storage

Production

Consuming

Main functions

Retailing

CHAIN SUPPORTERS AND ENABLERS

/PROMOTER

FC, Gov, Research and Harbu

FC, Gov. , Coop. & Harbu

FC, & Harbu

Tsehay Aabebe

5 FMOs

Kera CLA

Producers

Main actors

Women CLAs

Smallholder farmers

JU Students &Dwellers

FMOs

Retailers

Harbu’s Loan products across the chain actors

Actors

Products

Purpose

• Lease financing • Working capital loan

• Processing machine

• Working capital• Stocking

Stocking&Semi-processing

Purchase of inputs

Agricultural loan bullet payment

loan: payments made at harvest time

Working capital loan

Short term & installment payment

Technical, information and seed capital

Financing more than one

VC actor

HARBULimited funds for loans to meet the needs of different actors.

FARMERSLack of confidence to shift to new and commercial produces

Usually looking to down ward risks

Challenges

Ambition to take

external loan

Different loan term

and interest (internal vis-à-vis external)

Challenges of working with SHG/CLA

PARTNERS

Swiss hand