Role of Development Financial Institutions in Agricultural Sustainable Development: A Systematic Literature Review

This systematic literature review explores the role of Development Financial Institutions (DFIs) in advancing sustainable agricultural development and rural economic growth. Based on an analysis of 73 articles from the Scopus database, the study highlights DFIs’ key contributions, including the provision of financial support, promotion of technological modernisation, and development of rural infrastructure. It also examines the strategies DFIs employ to foster innovation, enhance productivity, and support climate-resilient agricultural practices. Despite their significant roles, DFIs encounter various challenges, such as limited institutional capacity, inadequate financial resources, and high risks associated with agricultural lending. The review suggests strengthening institutional frameworks, fostering collaboration among governments, DFIs, and the private sector, and designing financial products tailored to the specific needs of the agricultural sector. These findings offer valuable insights for policymakers, researchers, and financial institutions seeking to enhance the effectiveness of DFIs in promoting sustainable agriculture and rural development.