Project Briefs

Seed receipt financing: Addressing inherent cash flow challenges in local seed businesses

Introduction

Seed production and marketing by local seed businesses (LSBs) in Uganda is characterised by inherent cash flow problems. This is due to the longer wait until the seed marketing period compared to ordinary grain which can be marketed immediately after harvest. As a result, LSBs are compelled to sell off their valuable seed as grain in desperation. The seed receipt system innovation provides a practical solution by enabling LSBs to receive advances against their stored seed stocks while waiting until it can be sold.