World Bank Document

F. Lessons Learned and Reflected in the Project Design 
52. 
Access to long-term finance suitable to the needs of farmers and agribusinesses remains important to realize a 
full horticulture sector potential and encourage private investments. The HDP experience shows that improved access 
to finance is critical to establish lead agribusiness firms and nuclear farms that drive and catalyze agricultural 
development
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. The project’s credit line provides the required long-term finance for such developments and serves a 
niche that is not yet catered to by commercial banks for various reasons, while the project will generate a demonstration 
effect for local banks to note the benefits of offering these lending products. Yet, progressing from strengthening 
individual farms and firms to strengthening horticulture value chains and making them more inclusive (by allowing for 
stronger participation of smallholder farmers) requires more targeted credit, with conditions attached to it to encourage 
collective actions and complemented with a wide range of public programs. 
53. 
International best practices suggest several key factors that contribute to building high-performing public 
research institutes that are more efficient and responsive to the needs of the agriculture sector. They include stable 
and diversified financing: (i) combining the core budget with research grants and incomes from commercial activities 
increases sustainability and improves performance of public research institutes; (ii) aligning programs with client needs 
and encouraging close collaboration between research and extension; and (iii) engaging with productive partnerships 
and farm cooperatives to determine research priorities. International experience also suggests that reform of the 
research institutes requires time and changes that respond to the country’s context and overall administrative reform.