Rwanda: Microfinance institutions work with government to ease farmers’ money worries

| August 8, 2016

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The Rwandan Business Development Fund has reached a deal with 450 microfinance institutions to provide farmers with better access to financing.

Innocent Bulindi is the chief executive officer of the Business Development Fund, which was established by the government to improve access to finance. He says high interest rates and collateral requirements will be eased to ensure farmers can access loans.

He said: “The biggest issue that farmers have is that they do not have collateral, and this really blocks them from getting access to loans. There is also the issue of high interest rates which affects them in terms of buying inputs like fertilizers. We have come up with innovative financing products to help them to access what they need at the right time.”

He also said the program will address risk management for farmers, including establishing a weather index insurance program.

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Photo credit: The New Times/Timothy Kisambira