When we talk about agribusiness in Rwanda, we often focus on the processors, the exporters, the innovators building modern factories and new products. But where does it all begin? It begins with the farmer—the person who tills the land long before anyone else enters the value chain. Yet, for decades, many farmers have been excluded from the financial system because they lack integration. They operate outside structured value chains, without stable buyers or predictable business models that banks can confidently work with. And the irony is this: it is riskier not to support farmers than it is to invest in them, because they are the foundation of everything agribusiness aims to build. Rwanda’s national strategies have long emphasized the importance of agriculture. At various stages of our development plans, the country has sought to double the share of agricultural lending in the financial system. Studies show that while about half of farming households save with formal institutions, only a small fraction truly accesses credit. The gap widens for low-tier farmers who are not part of cooperatives, making it harder for banks to lend and harder for these farmers to grow. But this challenge is not unique to Rwanda. Across the continent, agribusinesses lose billions of dollars in potential value because raw materials are imported instead of sourced locally. In many countries where contract farming and out-grower models have been embraced—whether barley in Ethiopia, rice in Kenya, or horticulture in Senegal—farmers linked to processors through structured models have seen higher incomes, better productivity, and stronger access to finance. When farmers are part of an ecosystem, everyone benefits: processors secure raw materials, banks see reduced risk, and farmers gain stable markets and predictable earnings. The lesson is clear: you cannot isolate the farmer and expect agribusiness to thrive. Financing agriculture requires financing an ecosystem, where farmers, cooperatives, SMEs, off-takers, input providers, insurers, and financial institutions move together. When a farmer is part of a cooperative or backed by a contract with a processor, they aren’t just a single borrower—they become part of a system with shared responsibility, traceable production, and guaranteed market access. For a bank, it is de-risking. Agri-SMEs have a particularly critical role in shaping this ecosystem. Too many continue to operate as standalone entities, disconnected from the producers their businesses rely on. Many still import raw materials such as maize, soy, and other staples, even though these crops are grown locally. By failing to integrate farmers into their supply chains, they limit their own growth opportunities. When SMEs adopt contract farming or out-grower schemes, they not only secure local supply but also strengthen their eligibility for financing. Banks are far more willing to support SMEs with strong farmer linkages because these models are more predictable, more sustainable, and aligned with national priorities. For farmers, being part of such structured models comes with a shift in mindset. It requires professionalism, honoring contracts, supplying consistently, requesting loans that match their needs, and building trust with buyers and financial institutions. These disciplined steps transform subsistence growers into reliable commercial partners who can scale sustainably. The role of banks extends well beyond providing loans. It involves offering advisory support, market information, digital tools, insurance linkages, and tailored financial products that reflect the realities of agriculture. At Bank of Kigali, we have seen the benefits of this approach firsthand. With BK Foundation, we have begun training farmers and offering them small loans designed to help them transition from subsistence to commercial production. When farmers are viewed as integral members of a full value chain, the perceived risk dissipates, replaced by structure, transparency, and shared responsibility. When you empower the farmer, you secure the future. The pathway to a stronger agribusiness sector in Rwanda lies in partnerships that span from the soil to the shelves. The farmer is the seed of the entire system, and when the seed is strong, the harvest uplifts us all. The Author is the Head of Agri-Business at the Bank of Kigali The views expressed in this article are the writer’s own.
