Business Development Fund, 450 Microfinance Institutions Partner to Ease Agriculture Financing in Rwanda
The issue of high rates and lack of collateral demanded by banks before they issue loans to farmers will soon be history thanks to a deal reached with 450 microfinance institutions, according to the Chief Executive Officer of the Business Development Fund, Innocent Bulindi.
BDF is an independent government entity established in collaboration with the Development Bank of Rwanda (BRD) to implement the “Access to Finance” objective.
Bulindi told journalists last week that BDF is working to invest in rural farming and to develop different finance mechanisms that can help solve funding challenges.
“The biggest issue that farmers have is that they do not have collateral and this really blocks them from getting access to loans. There is also the issue of high interest rates which affects them in terms of buying inputs like fertilizers. We have come up with innovative financing products to help them to access what they need at the right time. We have signed contracts with more than 450 microfinance institutions from all over the country to refinance rural agriculture,” he said.