Increasing Smallholder Farmer Access to Finance in the Dominican Republic

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By Dieter Wittkowski, F2F Volunteer in April 2023


About the Assignment: Dieter Wittkowski supported Centro de Educación y Promoción Rural (CEPROR) as a Microfinance Expert. Mr. Wittkowski trained administrative personnel in financial management of small loans. Mr. Wittkowski has over 20 years of experience with the Inter-American Development Bank in Latin America. 

What does microcredit have to do with farming? Well, as with many things related to finance and economics, it depends. In the Dominican Republic (DR), the agricultural sector is closely linked with access to financial services. Small-scale farmers, productive cooperatives and producers’ associations and their family members often need small and appropriately designed loan and savings products to enhance their productivity and access to markets. While there is a plethora of existing banks and microfinance organizations in the DR, many rural families still have difficulty in obtaining a loan that meets their needs.

My volunteer assignment with F2F took me to the rural towns of Salcedo and Villa Tapia, located in one of the most fertile and productive agricultural areas of the country, where the rice, cacao, yuca (cassava) and batata are grown, among other crops. My role was to provide guidance and advice to two small, local non-profit organizations that were exploring how to offer savings and small loans to the families, youth and microenterprises that they work with, in a manner that was aligned with their values and principles.

I started out a bit skeptical about how it would all play out. Would I really be able to respond to their needs? What if they rejected the guidance I could offer?  But as time unfolded, we slowly built trust, listened to each other and examined different sides of many issues. We reviewed the pros and cons of different microcredit methodologies, assessed the costs and revenues associated with them, reviewed the risks involved, and hopefully planted the seeds and concepts they will need to take action in the near future.  The local host organizations were very welcoming, demonstrating perseverance, enthusiasm and passion for achieving their dreams of improving the livelihoods of their rural producers and microenterprises. They were open to considering and discussing the challenges involved, and were thirsty for guidance and orientation on how to make a good plan and start their journey with the tools they needed to work toward success.  

We ended our time with lunch together under a tree, eating rabbit (produced by the local cooperative), “tostones” (smashed fried plantains), salad and great company.  I realized then that, despite whatever would come of the technical ideas exchanged, perhaps the more important part of our encounter was opening our minds and hearts to new ideas, different perspectives and ways to foster hope for a better world. 

This assignment was incredibly special for me, because it brought me “full circle” from 1979, when I first came to the DR as a college volunteer to help rebuild destroyed houses after Hurricane David, which changed my life forever. It was fantastic to return as a F2F volunteer over 40 years later and contribute to local efforts to build local capacity for providing needed loans to rural families. I am hopeful that another F2F assignment will be available for me in the future.

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