New credit system to support Nyagatare farmers

NYAGATARE - Maize farmers in Nyagatare District will, in the first phase of the planting Season A, access loans from the new ‘Inventory Credit system’, to invest in increasing production. The new credit system is operated by RDO in conjunction with Duterimbere, a micro-finance institution. The system allows farmers to use their harvest as a guarantee for the loans. According to Augustin Bahorana, RDO Programmes Officer, the short-term system protects farmers against low prices especially during harvest when there is ample supply, by giving them access to credit when they need it most. “The need for and lack of credit can force farmers to sell their yield to the first buyer at harvest, often at a low price. Following this, the farmer often has to buy food and seeds a few months later at higher prices. One of the advantages of this system is that farmers can sell their crops months after the harvest, when market prices are favourable,” he said. According to Appolinaire Rutabayiru, the head of Micro Finance, Duterimbere; in the districts of Nyagatare, Gatsibo and Kayonza, farmers will easily access to the loans from the rural-based financial institution. “We have earmarked Rwf 150 million to help Nyagatare maize farmers improve their production through the Inventory Credit System,” he said. Enock Byabashaija, Nyagatare District vice mayor in charge of economic affairs, said that the new financial system is timely and will double the districts’ efforts to honour their agricultural performance contracts. “We recently signed performance contracts to emerge best in agricultural production and this inventory credit system is a catalyst to our plans,” he said. Jane Mutamba, a model farmer in the District said she will be motivated to produce more by the new credit system. “I used to find it difficult to obtain enough resources to improve my production. However, now that I have access to the loans, I am ready to double my production,” she said. Ends

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New credit system to support Nyagatare farmers