PAFAI: Promoting Access to Finance and Agri-insurance for Agricultural Value Chain Actors

The overall goal of the PAFAI project is to promote access to finance and agri-insurance for agricultural value chain actors in Georgia. The project is financed by SDC and is implemented within the additional credit to the Lesser Caucasus Project.

The project is structured in two components:

Component A. Access to Finance

Key activities of the access to finance component include:

  • support PFIs to enhance and expand tailored financial services for rural smallholders
  • facilitate introduction of Value Chain Finance approach
  • increase PFIs efficiency through improved financing schemes, procedures and banking tools


Component B. Access to Agricultural Insurance

Key activities of the access to finance component include:

  • support the Government to develop policy and legislative framework for agro-insurance development
  • support building of the National Scheme of Agri Insurance (NAGIS) to reduce the vulnerability of rural smallholders to agriculture-related risks
  • build capacities of private insurance companies


A specific output of the project includes supporting the upscale of agricultural holdings via increased financial and insurance literacy of farmers.

Project summary video: PAFAI project has contributed to the improvement of access to finance and agricultural insurance to farmers, by developing and implementing specialized value chain financing schemes and improving the performance of government-subsidized agricultural insurance.

APMA video: An educational video for Georgian farmers explainng how actually does agricultural insurance work. This video was made by BFC with support of APMA and MoA to complement the educational aspect of farmer knowledge. This video is also placed on APMA website

APMA booklet: An educational booklet for Georgian farmers visualizing the key messages form APMA educational video—how actually does agricultural insurance work. 30,000 of these brochures have been printed and distributed to insurance companies, which then attached this brochure to every agricultural insurance contract signed.
APMA booklet
View PDF APMA booklet in Georgian

VCF Crystal booklet: The booklet on piglet VCF scheme has been developed to complement onsite pigletVCF trainings conducted by PAFAI project. The piglet provider—AgroQiziki—supplies the farmer with piglets, and all input supplies and services and then purchases back the grown-up piglets for higher price. The financial institution—Crystal—provides the farmer an installment (0%) loan for purchase of all inputs and materials and then deducts the lent amount from the money the farmer receives from piglet sale.
VCF Crystal booklet
View PDF: VCF Crystal booklet in English, VCF Crystal booklet in Georgian

PAFAI project, in collaboration with Agroseguro and experienced Georgian agronomists and loss adjusters, has developed Georgia’s first national loss adjustment guidelines.
This shall improve the quality and integrity of loss adjustment component of agricultural insurance. Insurance companies that have partnered with APMA for government-subsidized agricultural insurance program have to adhere to these guidelines while performing loss adjustment.

View PDF files in Georgian:

PAFAI Photos