Agriculture financing key to boost Rwanda’s economy
Global, Africa, Rwanda
Agriculture employs more than 70% of the total population in Rwanda. As outlined under the Vision 2020 and Economic Development and Poverty Reduction Strategy II (EDPRS) II targets, agriculture is expected to play a critical role in poverty alleviation efforts and overall economic prosperity through job creation and supporting key industries.
Despite cited critical contribution to economic development, agricultural finance has been identified as one of the areas that remain a challenge for the Rwandan agricultural sector. The government and other stakeholders have implemented several initiatives over the last two decades to address this challenge. These include establishment of Guarantee Funds, Export Growth Facility, Grants to support different agriculture related initiatives and the establishment of the agriculture Department at the Development Bank of Rwanda (BRD).
The agriculture department at BRD was intended to take a lead in financing and supporting agriculture sector in the country. So far, Development Bank of Rwanda (BRD) is the single largest fancier of agriculture in the country. “The main focus of BRD is to provide financing to private investors for the development and modernisation of agriculture through financing the development and modernization of agriculture sector,” explained Juvenal Kalema, Senior manager at BRD’s agriculture department.
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