It was revealed by Prime Minister, Dr. Edouard Ngirente as he presented Government’s planned actions in the distribution of affordable agro-inputs to the plenary session of both parliamentary chambers.
He explained that the Government is set to increase investment in agriculture through loans with low interest rates to remove barriers for farmers who would be charged up to 18% as they seek loan in banks.
The project worth US$350 million to be rolled out in collaboration with the World Bank is expected to begin in the near future.
“This project will have a component to facilitate farmers’ access to loans. As per government’s plan under this scheme, we have committed to offer loans with low interest not exceeding 10% to farmers. The latter will be initially a project of the government whereafter the funds will be channeled through banks to make them accessible to farmers. We have prepared the project thoroughly with intentions to facilitate farmers’ access to affordable loans,” he said.
Agriculture accounts for 25% of Rwanda’s GDP.
The fund will complement the government’s program where it has multiplied four folds the amount allocated to subsidize the cost of agricultural inputs.
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