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Financing livestock trade: Formal and informal finance in Kenya, Mali and Somalia

This report looks at the degree to which traders marketing livestock from the rangelands use formal financial services, and examines the development of these financial services.

Publisher SPARC
By Rupsha Banerjee Boukary Barry Carmen Jacquez Nick Meakin Steve Wiggins Mohamed Yusuf
Natural resources and ecologies People and societies Economies, markets and livelihoods Africa Kenya Mali Somalia

Africa’s drylands are largely used by herders who produce livestock in extensive systems involving nomadism or transhumance. Part of their income comes from selling livestock to consumers in distant cities.

Business requires capital, at the very least working capital. This report explores the degree to which traders marketing livestock from the rangelands use formal financial services, including savings, payments, credit and insurance.

It does so within the general understanding that developing such formal services in rural areas of the global south is challenging. This is seen in the often-limited degree to which farmers, herders and other rural people use formal finance.

As such, this study was designed to explore the state of financing of livestock marketing from the drylands, and how this has changed in the new century. It takes three country studies in Kenya, Mali and Somalia, and addresses the following questions:

The study found that: 


Source URL: https://www.sparc-knowledge.org/resources/financing-livestock-trade-formal-and-informal-finance-kenya-mali-and-somalia