Coffee farmers to benefit from BRD’s Frw4 billion loan

Coffee farmers in Rwanda will continue to receive financial support from Rwanda Development Bank (BRD) in form of loans with Rwf4billion available for farmers next season.Emmanuel Karuranga the official in charge of risk and credit management department at BRD said that the bank supports coffee farmers because it’s a government instrument for economic growth and development. He said this on Thursday at Hotel la palisse Nyandungu where BRD was meeting different stakeholder in the coffee sector especially owners of washing stations financed by the bank. The development bank has been offering support to farmers since 2003 to build coffee washing stations and the expansion of their business. Last coffee season, the bank gave loans worth Rwf2.2 billion to individuals and cooperatives who totaled to 24. “We are going to increase the amount of loan to farmers next season because we expect the coming season to be more productive than the past one,” said KarurangaOut of the total loan that was availed to farmers, Rwf1.6 million was utilized which is a 75 percent utilization. However, there are challenges that the bank faces in giving out the loans which include poor management of the funds, access to markets and lack information about the availability of the loan facility. The bank has so far received 15 loan applications for next years season out of a possible 26 which the bank expects to finance. The received applications are worth Frw2 billion. BRD also says that 90 percent of the finances that 34 coffee washing stations use in a season come from the bank in form of loans hence in turn, all the proceeds realized from coffee washing stations that work with this bank must pass on BRD’s account. Karuranga also said that meeting of stakeholders was timely as they review performance of the last coffee campaign and prepare for the next campaign. Ends

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Coffee farmers to benefit from BRD’s Frw4 billion loan