{"id":2000124744,"date":"2026-09-04T15:34:04","date_gmt":"2026-09-04T13:34:04","guid":{"rendered":"https:\/\/new.igihe.com\/english\/?p=2000124744"},"modified":"2026-09-04T15:34:06","modified_gmt":"2026-09-04T13:34:06","slug":"ifad-bank-of-kigali-unveil-21-million-financing-deal-to-support-rwandas-farmers","status":"publish","type":"post","link":"https:\/\/new.igihe.com\/english\/ifad-bank-of-kigali-unveil-21-million-financing-deal-to-support-rwandas-farmers\/","title":{"rendered":"IFAD, Bank of Kigali unveil $21 million financing deal to support Rwanda\u2019s farmers"},"content":{"rendered":"\n

The Farmers\u2019 Organizations Financing Programme-Rwanda (FOFP-R) will combine $12 million in financing from IFAD with $9 million in co-financing from Bank of Kigali.<\/p>\n\n\n\n

The deal, signed on the sidelines of the Africa Food Systems Forum in Kigali on Friday, September 4, is expected to strengthen about 215 farmers\u2019 organisations, provide financing to around 172 of them and benefit more than 35,000 smallholder farmers, particularly women and young people.<\/p>\n\n\n\n

The programme will target key agricultural value chains, including maize, rice, cassava, dairy and horticulture.<\/p>\n\n\n\n

IFAD Vice-President G\u00e9rardine Mukeshimana said the programme reflects a broader push towards innovative approaches to agricultural financing.<\/p>\n\n\n\n

\u201cThe significance of Farmers’ Organizations Financing Programme-Rwanda represents a broader shift towards innovative financing solutions. Innovation goes beyond technology; it is also about finance, institutions, partnerships and entrepreneurship,\u201d she said.<\/p>\n\n\n\n

\u201cFOFP-R is expected to reduce risk, attract additional investment and expand opportunities for rural entrepreneurs, farmers’ organizations and small-scale producers.\u201d<\/p>\n\n\n\n

Agriculture employs more than 70 per cent of Rwanda\u2019s population and contributes about 25 per cent of the country\u2019s gross domestic product.<\/p>\n\n\n\n

However, access to finance remains a major constraint for the sector, with agricultural lending accounting for only a small share of total credit.<\/p>\n\n\n\n

Farmers\u2019 organisations play a key role in aggregating production, facilitating access to inputs and markets, and connecting farmers with financial services. However, about 70 per cent of their financing needs remain unmet, according to IFAD.<\/p>\n\n\n\n

The financing gap has been linked to challenges including limited collateral, inadequate financial records and low financial literacy, which can increase lenders\u2019 perception of risk.<\/p>\n\n\n\n

Bank of Kigali Chief Executive Officer Diane Karusisi said the partnership would combine financing with support aimed at strengthening farmers\u2019 organisations.<\/p>\n\n\n\n

\u201cFarmers’ organizations are the backbone of Rwanda’s agricultural economy, yet they have long been underserved by traditional financing,\u201d Karusisi stated.<\/p>\n\n\n\n

\u201cThrough this partnership with IFAD, Bank of Kigali is bringing innovative, inclusive financing solutions to the people who need them most, combining capital with the technical support these organizations need to strengthen their governance and financial systems.\u201d<\/p>\n\n\n\n

How the financing will work<\/strong><\/p>\n\n\n\n

IFAD\u2019s $12 million package consists of a $9 million loan, a $1.8 million grant for risk sharing and a $1.2 million technical assistance grant.<\/p>\n\n\n\n

The technical assistance component will support farmers\u2019 organisations in improving governance, financial management and digital capacity.<\/p>\n\n\n\n

It will also help Bank of Kigali develop the tools and expertise required to sustainably serve farmers\u2019 organisations.<\/p>\n\n\n\n

The initiative has also benefited from a $6 million allocation to IFAD through the Business Investment Financing Track (BIFT), a financing mechanism of the Global Agriculture and Food Security Program (GAFSP).<\/p>\n\n\n\n

BIFT provides multilateral development finance institutions with flexible grant and concessional financing to support financial innovations targeting smallholder farmers and early-stage micro-, small- and medium-sized agribusinesses in low-income countries.<\/p>\n\n\n\n

GAFSP Head Shobha Shetty said the financing mechanism would help expand access to capital in Rwanda\u2019s agri-food sector.<\/p>\n\n\n\n

\u201cThis innovative finance solution offered by the BIFT will support more inclusive capital markets in Rwanda to help the most vulnerable working in the agri-food sector, including smallholder farmers, women, and youth, make transformative investments for their future,\u201d Shetty noted.<\/p>\n\n\n\n

The programme is financed through IFAD\u2019s Private Sector Trust Fund and has received support from GAFSP and the Government of Canada.<\/p>\n\n\n\n

\n
\"\"
The deal was signed on the sidelines of the Africa Food Systems Forum in Kigali on Friday, September 4<\/figcaption><\/figure>\n\n\n\n
\"\"
The Farmers\u2019 Organizations Financing Programme-Rwanda (FOFP-R) will combine $12 million in financing from IFAD with $9 million in co-financing from Bank of Kigali.<\/figcaption><\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n
\"\"
Bank of Kigali Chief Executive Officer Diane Karusisi said the partnership would combine financing with support aimed at strengthening farmers\u2019 organisations.<\/figcaption><\/figure>\n\n\n\n
\"\"
IFAD Vice-President G\u00e9rardine Mukeshimana said the programme reflects a broader push towards innovative approaches to agricultural financing.<\/figcaption><\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n
\"\"
The programme is financed through IFAD\u2019s Private Sector Trust Fund and has received support from GAFSP and the Government of Canada.<\/figcaption><\/figure>\n<\/figure>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The International Fund for Agricultural Development (IFAD), Bank of Kigali and Aceli Africa have partnered to expand access to finance for farmers\u2019 organisations and smallholder farmers in Rwanda under a new $21 million (about Rwf 31 billion) blended finance initiative.<\/p>\n","protected":false},"author":131,"featured_media":2000124821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[151,69],"byline":[192],"hashtag":[],"class_list":["post-2000124744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-editors-choice","tag-homehighlights","byline-wycliffe-nyamasege"],"bylines":[{"id":192,"name":"Wycliffe Nyamasege","slug":"wycliffe-nyamasege","description":"","image":{"id":2000122456,"url":"https:\/\/cdn.igihe.com\/en\/2026\/08\/WhatsApp-Image-2026-08-14-at-11.58.47-AM.jpeg","title":"WhatsApp Image 2026-08-14 at 11.58.47 AM","mime_type":"image\/jpeg"},"user_id":131}],"contributors":[{"id":192,"name":"Wycliffe Nyamasege","slug":"wycliffe-nyamasege","description":"","image":{"id":2000122456,"url":"https:\/\/cdn.igihe.com\/en\/2026\/08\/WhatsApp-Image-2026-08-14-at-11.58.47-AM.jpeg","title":"WhatsApp Image 2026-08-14 at 11.58.47 AM","mime_type":"image\/jpeg"},"user_id":131}],"featured_image":{"id":2000124821,"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/OO25.jpg","alt":"","caption":"","mime_type":"image\/jpeg","width":1500,"height":1000,"sizes":{"thumbnail":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/OO25.jpg","width":1500,"height":1000},"medium":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/OO25.jpg","width":1500,"height":1000},"medium_large":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/OO25.jpg","width":1500,"height":1000},"large":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/OO25.jpg","width":1500,"height":1000},"full":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/OO25.jpg","width":1500,"height":1000}}},"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2000124744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=2000124744"}],"version-history":[{"count":3,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2000124744\/revisions"}],"predecessor-version":[{"id":2000124833,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2000124744\/revisions\/2000124833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media\/2000124821"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=2000124744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=2000124744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=2000124744"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=2000124744"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=2000124744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}