{{Nairobi: }} {Access to loans and grants has now been made easier to grain farmers and traders. Through an agreement of the East Africa Exchange (EAX) and ABC Bank farmers can now borrow against their projected harvest. This will also enable farmers protect their produce against storage-related damage and negotiate for better prices.}
With warehouse receipt finance, a farmer or trader will deliver his produce to a warehouse that has been approved by the bank. The bank will then issue a receipt vouching for the quantity and quality of produce being stored and take the receipt as collateral against which they provide financing to the farmer or trader. Through the deal, ABC Bank will provide finance for electronic warehouse receipts to grain farmers and traders supported by EAX; provide clearing and settlement services integrated with the national payment systems and mobile banking solutions.
“ABC Bank is committed to providing customized financial solutions to small and medium enterprises, including agribusinesses,” said ABC Bank Group Managing Director, Shamaz Savani, noting that agriculture is a key economic pillar that ought to be supported through financial partnerships to ensure the country attains food security to support the growing population.
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