Dear colleagues
Thank you for this very important Agri-PPP Guide. I strongly believe this will help plan effective collaboration.
I think there are two key issues for further discussion or elaboarion.
1) Since the participants can involve those from private sector (profit motivated) and those in Government, NGOs (often socially motivated), we need to decide the level of ''profit'' (and risk taking) that can be attained by those especially in the private sector, and to reach a concensus or mutual understanding on that level.... One challenge that we face in ruralfinance is the level of microcredit interest to be charged by banks and microfinance institutions (MFIs). As far as I know, so far, there is no consensus on a ''reasonable'' interest rate that need to be charged (though the components that should go into the computation are quite clear). Indeed, there are also those who strongly argue against ''any interest'' on credit delivered to businesses owned by poor people..... The confusion often gives rise to difficulties on collaborative efforts!!
2) How can we balance between ''INCENTIVE'' and ''MEASURES'' on those who fail to deliver as per commitments (see Box on page 11 on the Guide), especially for the private sector. May be the only MEASURE we can do on the private sector who fail to deliver is to remove the so-called incentive? What are the strategies to avoid potential crowding out of private sector actiors while doing so?
I think these are some of the key issues that need further discussion on the guide.
Getaneh ([email protected])
Mr. Getaneh Gobezie