Warehouse Receipt System in Sub-Saharan Africa

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.