Following the launch of the Rwf300bn project that seeks to extend low interest loans towards Rwandan farmers, this could be a new dawn for the industry on which close to 80 per cent of the country’s citizenry depend for livelihood. The project, which was announced by the Prime Minister while appearing before a joint parliamentary session, is expected to, among others, de-risk agriculture, which will then help in the commercialization of the sector. While the entire country depends on agriculture for livelihood, it has for long remained among the most risk-prone business undertakings, which has led to less investment in the sector from which nearly 80 per cent of the population eke their living. Most commercial banks have been hesitant to lend towards agricultural projects because they consider them too risky, or where they have to, seek collateral from farmers which at times is not available. The consequence of this has been to leave the sector largely to subsistence farmers, whose yield continues to dwindle because of lack of investment in terms of inputs which is exacerbated by the shortage of land. De-risking agriculture therefore means the sector will then attract more investors which will not only bolster the country’s food security, but also increase the volume of produce that Rwanda exports to foreign markets. For maximum impact, caution should be exercised in the disbursement of these funds. Enough education is important for prospective beneficiaries of the funds to first of all know that the money will be a loan, and not a grant, thereby working towards paying it back. This way, once repaid, the funds will then be disbursed to other beneficiaries along the agriculture value chain. The facility should only be looked at as a catalyst for more investments to be hauled into the agriculture sector, not just out of necessity, but also because it is profitable business. Rwanda every year expands its market reach through both multilateral and bilateral pacts the government signs with different entities and all these must be explored for potential destinations of our produce. However, to fully tap into these markets, there is need for value addition across board, and initiatives like the Nyagatare-based milk processing plant should be greatly encouraged.
