Financing the agriculture sector in Rwanda is not a risky business, a recent study has said.

The Agricultural Financial Service study which was carried out by Inspired International, an international development consultancy firm says the production costs in Rwanda incurred in the sector will still leave the farmer with a good profit margin.

The report which was funded by the Belgian Technical Cooperation (BTC) also says the market value of the final agriculture produce won’t leave a Rwanda farmer in a loss.

This means that the loans to the agricultural sector, especially for value additions are profitable. The report encourages financial institutions to fund the agricultural sector.

The study also shows that the demand for agricultural output in the country is higher than the surplus. Over supply always harmfully affects loan repayments as the market value drops.

Richard Pelrine, Technical Director of Inspired International, said, "The findings provide financer an approach on the agricultural financial services and how to be adopted in the country for agricultural development.”

Dr. Agnès Karibata, State minister for agriculture, said findings of the study also highlight opportunities thus building confidence in the country’s financial sector to make investments in the agricultural sector through credit facilitation.

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