BRD to increase funding to coffee dealers

Rwanda Development Bank (BRD), this year, plans to increase funding to the coffee sector by 45.5 per cent, from Rwf5.5 billion last year to over Rwf8 billion, an official announced yesterday. According to Emmanuel Karuranga, Senior Director Credit Administration Department, at BRD, the increase is out of the realisation that coffee is a key sector in the country’s economic development. “Currently, we have 39 coffee farmers and dealers and we expect the figure to double in the next years as funds are already available,” Karuranga said. He was speaking at a meeting with the bank’s clients convened to evaluate the performance of the 2011 coffee campaign. Karuranga explained that the loan scheme is in two different categories. Clients putting up a factory and buying machines fall in the first category and could get a loan with a repayment period of 5-7 years.“The second category caters for clients who only buy and sell coffee beans. The loan is reimbursed within a period of one year or so,” he explained. According to Karuranga, the bank last year faced challenges in issuing of loans because of fluctuating coffee prices.“Prices went up to either Rwf200 or Rwf350; this forced the bank to add more money to our clients.” Latest figures from National Agriculture Export Board (NAEB), show that the coffee sector last year collected US$75m, 34 per cent higher (US$56m) than those generated in 2010. Coffee is among the leading key sectors that contribute to the country’s economy.NAEB is set to register high production this year to 24,000 Metric Tonnes with coffee revenue projections set to surge to US$157m by 2017.

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BRD to increase funding to coffee dealers