Farmers have for long complained about lack of access to funding or other forms of support that could help them improve their operations and increase output. The situation could, however, change following an initiative by a local farmer-support organisation, Access to Finance Rwanda (AFR), where financial institutions personnel will be equipped with skills to serve smallholder farmers better. The initiative also aims at supporting innovative products and technologies targeting the agriculture sector besides promoting access to financial services, Jean Bosco Iyacu, the AFR technical manager, said. He said AFR will support financial institutions, including banks, microfinance institutions, insurers, as well as pension funds and SACCOs so they are able understand the needs of rural farmers and develop appropriate products for them. “This will make it easy for farmers to access appropriate and affordable financial products to invest in their agriculture activities, as well as benefit from risk mitigating interventions, like agro-insurance,” Iyacu said yesterday. He said the organisation’s intervention could help drive up lending to agribusinesses and promote innovative insurance products to guard agricultural enterprises against risks, like drought or storms and disease. Iyacu said AFR seeks to support financial institutions with projects in risk mitigating initiatives, like agriculture insurance, credit guarantee, and digital innovations “that will enhance outreach to farmers”. The project will focus on value chain initiatives in the diary sector, maize, horticulture, Irish potatoes, tea and coffee. Iyacu said the organisation has already invited interested institutions to submit proposals in these areas, adding that the $30 million (about) project will end in 2020. An earlier initiative started in 2010-2015 and supported five projects.
