This paper (PDF) by the International Water Management Institute (IWMI) reviews the evidence available on the provision of financing for African smallholder farmers to purchase irrigation equipment such as pumps, pipes and drip irrigation systems. It sets the scene by first reviewing the literature on experiences with providing microcredit and other microfinance services as a poverty reduction strategy. Based on both case studies and several systematic reviews of the literature, it finds that the outcomes and impacts on poverty, gender equity and broader economic development are mixed at best. Microcredit is not a silver bullet solution to poverty, but it can often help poor households improve their lives. The paper then reviews the demand for and supply of financing for smallholders to purchase irrigation equipment. In surveys, farmers express a strong demand for equipment such as pumps, but often point to the lack of affordable and appropriately designed credit as a critical impediment to gaining access to such equipment.
Population pressure and increasing water competition in a changing climate require us to take stock of the availability and use of water across scales. Water availability not only influences farmers’ commercial prospects but also irrigation-related enterprises and agri-businesses. Greater water scarcity could jeopardize irrigation and agricultural markets while excessive water use can lead to declining ecosystems, water quality and soil health. IWMI advises development partners and the public and private sectors on all aspects of water resource availability and use through a variety of advanced modeling and remote-sensing products and tools, including 
The ability of farmers to engage in or expand irrigation depends on the prevailing socioeconomic, ecological and political contexts, which are often complex, non-linear and changeable. Overcoming systemic barriers to farmer-led irrigation development while taking advantage of existing opportunities 
A lack of affordable credit, particularly for women and resource-poor farmers, is one of the main barriers to expanding farmer-led irrigation in low- and middle-income countries. But 
Scaling farmer-led irrigation requires strengthening human capacity and knowledge exchange among all actors and stakeholders involved. IWMI takes an action research approach, working with national and international research institutions, governments, extension agents and public and private organizations to co-develop the scaling ecosystem and strengthen capacity to drive scaling networks and collective action. We support the