Working Group on Rural Financial Inclusion

Bridging the Gap: How Public Development Banks Are Transforming Rural Financial Inclusion 

“Rural Financial Inclusion refers to ensuring the access and use affordable financial services in the rural context”, referred by Carolina Trivelli in her presentation, the former Minister of Development and Social Inclusion of Peru and Principal Researcher at the Institute of Peruvian Studies.  

 Many rural communities still lack access to financial services. Public Development Banks (PDBs) are stepping in to address this issue. During two Agri-PDB Platform Working Groups held on April 28 and 29, 2025, experts from Asia Pacific, Latin America and the Caribbean shared practical solutions. 

Session 1 – Latin America (April 28, 2025) 

Romy Calderón, Latin American Association of Development Financing Institutions (ALIDE) highlighted “territorial exclusion,” where financial services are concentrated in a few cities, leaving rural areas behind. Carolina Trivelli (Instituto de Estudios Peruanos) stressed that inclusion requires understanding clients and reducing service costs to better serve rural areas. Fredy Montés (FIRA, Mexico) introduced the AgriTech platform, a digital tool that helps banks assess rural farmers who may not have the usual financial records. Manuel Layseca Nettles (COFIDE, Peru) described the “UNICAS” savings groups supported by COFIDE, which offer financial education and support for small-scale businesses. 

Session 2 – Asia Pacific, Caribbean (April 29, 2025) 

Prasun Kumar Das, Asia-Pacific Rural and Agricultural Credit Association(APRACA) emphasized the challenges of delivering financial services in rural areas due to high costs and long distances. Carolina Trivelli highlighted the importance of financial inclusion as a driver of economic growth and a tool to reduce poverty and inequality. Mr. Anderson, Development Finance Corporation(DFC Belize) shared insights from the “Empowered” loan program, where 77% of participants were women. He explained that loans are structured around borrowers’ income cycles, making them easier to repay. Kuy Panha, Agricultural and Rural Development Bank (ARDB Cambodia) discussed Cambodia’s key challenges, including low financial literacy and reliance on collateral. ARDB is using digital tools to improve credit access for underserved rural populations. James Marc de Sousa, International Fund for Agricultural Development(IFAD) praised PDBs for delivering essential public services. He called for inclusive financial strategies and continued innovation to build resilience and support rural communities. 

Session 3 – Francophone Africa (25th June, 2025)

This session highlighted inclusive finance innovations from North Africa, with a spotlight on Morocco.
Mr. Abdelouahab Boushaba, Deputy Director General of Crédit Agricole du Maroc, presented Tamwil El Fellah (TEF), a specialized financing arm serving smallholder farmers typically excluded from formal banking. TEF bridges the “missing middle” by offering long-term loans with minimal collateral, farm-level outreach, and digital onboarding tools.

Since 2008, TEF has financed over 106,334 farmers and 117 women-led cooperatives, with more than $460 million Moroccan dirhams (MAD) in rural investment. Their impact is grounded in close public-private collaboration with Morocco’s Ministry of Agriculture, regulatory bodies, and international development agencies.

During the Q&A, Mr. Boushaba clarified that despite lacking guarantees, TEF has a strong repayment record and uses a prudential stabilization fund to manage risk sustainably. His key message: “Our goal is development, not profit.”

Xavier Marc Desmoulin, regional rural finance expert at IFAD, closed the third session by emphasizing that real inclusion means adapting business models, tools, and delivery channels to fit each segment’s needs. He praised CAM’s segmentation strategy and stressed the value of proximity, education, and tailored credit assessment. Inclusion, he noted, “requires not just services, but the right approach to deliver them.”

A Shared Vision 
Despite challenges like cost, tech gaps, and low financial literacy, PDBs are creating real change. Whether through satellite credit tools, women-focused loans, or community savings, these institutions are adapting and innovating. Trivelli said, “Solutions must fit the context.” Together, they are building a stronger future for rural communities.