Representatives of commercial banks and farmers in Rwamagana districts have agreed to work together to promote farming in the area, with the former committing to extending affordable loans to farmers.

The decision was reached at the closure of a two-day meeting in Rwamagana during which farmers also expressed willingness to meet banks’ conditions, including presenting bankable proposals.

Gil Sebagabo, Cogeabank manager, Rwamagana branch, said: "Farmers can access money to finance commercial farming provided they demonstrate ability to repay.” 

Theogene Mugabo, I&M Rwamagana branch manager, said his bank is committed to supporting farmers.

He, however, said farmers need more training with regard to project formulation. 

"We welcome farmers’ cooperatives in our bank. It is our duty to help farmers expand their farms,” he said.

Farmers said they needed money to purchase farm inputs such as improved seeds, fertilisers, chemicals, hiring machinery, labour and harvesting costs.

Belange Uwizeye, an agriculture specialist, advised farmers to embrace cooperatives in order to expand their businesses through bank loans.

"Banks are sure of regaining their money since farming is done in a more organised way,” he said.

"Farmers tend to service their loans better than traders. They only need to be encouraged to professionalise their activities,” he added.

At least 90,000 farmers have formed over 180 cooperatives that will be applying for loans in Rwamagana District alone.

Athanase Habumuremyi, a farmer said access to financing will bring forth many advantages.

"One of the challenges in agriculture development is lack of capital. Banks have not been giving us loans, but now that they have agreed, the sky will be the limit,” he said.