Agricultural development in sub-Saharan Africa (SSA) is challenged by risks rooted at several levels – production, markets and macro/policy environments. In addressing these challenges stakeholders have invested considerably into different WRS schemes. Drawing on the experiences across 9 countries, this policy brief presents the existing WRS in SSA, the contributions to ARM, and recommendations for improvement.
The brief identifies 4 forms of WRS across SSA; 1) the community-based; 2) private collateral management; 3) public warehousing; and 4) pledge on current/future production. When managed professionally, these WRSs contribute to ARM by increasing access to agricultural finance, improving security over inputs, and commodity market prices and enhancing post-harvest loss management. Yet, there is limited legal backing, inadequate infrastructures and absence of local ownership. Improvement in the system requires legislative framework, strengthening skills and empowering community groups.
PARM (2016). Warehouse Receipt System in Sub-Saharan Africa: Making progress in market, finance and post-harvest risks management (by B. Osman). PARM Policy Brief #13. Rome: PARM/IFAD. Available at: http://p4arm.org/document/uploads-comparative-ssa_wrs_policy-brief