BK, USAID's Hinga Wunguke Project ink deal to drive sustainable agribusiness development

Bank of Kigali (BK) and USAID's Hinga Wunguke Project have joined forces to drive sustainable agribusiness development in Rwanda. In a significant move, BK signed a Memorandum of Understanding (MoU) with Hinga Wunguke, a project implemented by Cultivating New Frontier in Agriculture (CNFA). The partnership aims to increase agricultural productivity, improve farmers' financial accessibility, and enhance market and nutrition outcomes in the country. This collaboration underscores the shared vision of both entities and their commitment to the growth and resilience of Rwanda's agricultural ecosystem. ALSO READ: BK to inject Rwf150 bn in agriculture over five years The MoU signing took place on Friday, June 30, setting the stage for a strategic alliance that promises transformative change. Diane Karusisi, CEO of Bank of Kigali, emphasized the importance of the partnership, stating that it would optimize the growth of local farmers and expand their market access. The bank's long-term strategy involves deploying $150 million to support various agricultural value chains. Traditionally, BK has focused on cash crops like coffee and tea, but the new strategy recognizes the potential of food crops. The vision is to establish resilient and commercially viable value chains, ultimately achieving food security and even enabling exports, she said. Karusisi highlighted the alignment between Hinga Wunguke's Aggressive Facilitation approach and BK's goal of empowering the private sector. Through this collaboration, BK aims to become a pivotal player in Rwanda's agricultural market system, fostering economic growth and development. Daniel Gies, Chief of Party at USAID Rwanda Modernizing Agriculture Activity, expressed confidence in the partnership, citing BK's capacity, skills, and knowledge. He noted that the joint efforts would help implement a world-class strategy and ultimately lead to the transformation of Rwanda's agricultural sector. Gies also highlighted the significance of BK's financial institution, with its size and capacity filling a crucial gap in the country's financial sector. The collaboration is expected to ensure food security and financial freedom for farmers. The Hinga Wunguke Project aligns with the Strategic Plan for the Agricultural Sector (2018-2024), known as The PSTA 4. This innovative project, driven by input from over 100 stakeholders, aims to bring transformative change to Rwanda's agricultural market system while promoting private-sector investment and growth opportunities. The collaboration between BK and Hinga Wunguke is a testament to their shared commitment to these objectives. The project's Co-Investment Fund of $3.5 million, along with a Catalytic Service Provider Fund of $1.8 million, additional contributions of $2.8 million, and BK's alignment with Hinga Wunguke's objectives, will catalyze $20 million in agro-finance, $5 million in climate finance, and $5 million in additional equity investment. This represents a transformative milestone for Rwanda's agriculture sector, significantly boosting its growth and development.

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BK, USAID's Hinga Wunguke Project ink deal to drive sustainable agribusiness development