The private sector plans to establish a bank that will provide loans to farmers for investing in projects that promote modern agriculture.
Rwandan farmers have long expressed concerns about the lack of access to loans, which has hindered their ability to move from traditional farming practices to modern agriculture capable of meeting both local and international market demands.
Banks are generally hesitant to lend to farmers due to the agricultural sector’s vulnerability to natural disasters such as floods and droughts.
The idea of establishing a bank specifically to support farmers was announced this Friday at the conclusion of the Agricultural and Livestock Exhibition held at Murindi wa Kanombe.
Minister of Agriculture and Animal Resources, Dr. Musafiri Ildephonse, who attended the closing ceremony, stated that the Government of Rwanda will support the establishment of the bank.
He noted that the bank would be instrumental in providing farmers with the financial resources they need to enhance agricultural production, particularly through the use of technology.
Dr. Musafiri emphasized that the bank will benefit farmers by reducing interest rates on loans, thereby increasing the number of borrowers.
He said, “The Government of Rwanda is working to reduce interest rates on loans for agriculture and livestock. We want to see an increase in loans while interest rates decrease to between 9% and 10%.”
This was the 17th edition of the fair, attended by various stakeholders, including young people, which the Ministry of Agriculture and Livestock praised.
The participation of young people and women in showcasing their contributions to agriculture and livestock farming is seen as a positive step in the development of this sector, which has traditionally been dominated by older generations.
This year’s exhibition attracted 420 exhibitors, including international participants.
On one day, it was reported that approximately 3,000 people attended the event.