BRD and MINAGRI pens deal to boost livestock sub-sector

The Development Bank of Rwanda (BRD) has entered into a deal with Ministry of Agriculture and Animal resources (MINAGRI) that seeks to boost and re-stock Rwanda’s livestock sub- sector. The deal entails both institutions joining hands to avail financial and technical resources to qualified farmers in order to improve the overall quality of the country’s livestock sub-sector as it undergoes significant changes. MINAGRI , through its agricultural sector modernization programmes for the medium term, is currently putting emphasis is on rearing of quality livestock through provision of quality stocks such as what the sector needs to import in order to ensure increased production. BRD as the country’s leading development finance institution is mandated to offer intervention to the key sectors of the economy such as agriculture by offering various favourable funding lines and even technical support to farmers. The general purpose of the deal is to set up a formal framework meant to assist with developing further, modern cattle farming projects in Rwanda through promotion of modern inputs into the livestock sub-sector such as importing exotic breeds. BRD is committing to provide loans to finance activities by experienced cattle rearing farmers either as individuals or those coming together as corporate entities specifically those well versed in the modern cattle farming projects. The specific purpose of the programme is to establish financing terms and conditions related to the importation of at least 1,000 exotic cows meant to boost the livestock sub-sector. BRD will offer funding equivalent to cover the balance between the subsidy and the farmers’ equity of at least 20 percent of total cost. However, the targeted farmers must fulfill all the technical and financing conditions required in order to access the new financing facility. Prequalified farmers will be eligible for the BRD loan after receiving a grant from the government in the form of transport logistics subsidy equivalent to 50 percent of the total shipment cost as the exotic breeds will be imported from Europe or South Africa or from well known suppliers.In more specific terms; As the main technical support partner in the project agrees to facilitate identification and importation of the exotic breeds to be purchased by customers eligible for the BRD loans or own equity. MINAGRI will ensure that the imported stock are in good health and in order to ensure the wellbeing of the stock the Ministry will manage a quarantine centre to be set up in the exporting countries before handing them over to customers. Will also carry out training on the appropriate farming techniques where required in favour of farmers benefiting from the BRD loans. On its part, BRD will appraise and approve eligible applications by issuing notification letters to the beneficiaries and will copy the same to. BRD will also appraise capacities of individual farmers who may wish to buy the cows on their own funds; Upon approval, BRD will avail appropriate financing and will also ensure that the exotic cows are insured while on transit and within the country. Prior to being offered the newly imported stocks, BRD will also ensure that prequalified farmers have the necessary infrastructure as part of the screening process of eligible beneficiaries. As part of the monitoring and evaluation mechanism of the project BRD will embark on making periodic visits to beneficiaries The programme is set to kick off in August, 2012 where the first importation is expected by mid September 2012 and it will be rolled out in phases. We hereby call upon all farmers interested to write to The Chief Executive Officer Development Bank of Rwanda specifying the following; • How many cows you want;• Your contribution in cost of buying of cows • Loan requirements • Where your farm is located and your contact details.

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BRD and MINAGRI pens deal to boost livestock sub-sector