GATSIBO - Farmers in Gatsibo district are set to benefit from Inventory Credit System, commonly known by a French name Warantage.
The credit system is a new programme that allows farmers to access credit by using their harvest as a guarantee for the borrowed funds.
The farmer’s harvest is stored in a warehouse or grain storage until the loan is repaid.
The new programme is financed by Research Into Use (RIU) and implemented by Rwanda Development Organisation (RDO) in conjunction with Duterimbere, a micro finance institution.
In a meeting that brought together farmers’ cooperatives, RIU and RDO officials, the extension deal was reached between farmers and the donors to bring the system closer to farmers in the district.
Currently, inventory credit system has been operating in Nyagatare and some parts of Bugesera District in the Eastern Province.
During the meeting, participants shared lessons learnt from Nyagatare maize farmers, who are beneficiaries of the system and further discussed ways of extending it to Gatsibo District.
In his speech, Isae Habumuremyi, the Gatsibo district vice mayor in charge of finance and economic development thanked RIU for organising and facilitating the meeting.
He also acknowledged the system’s efforts to improve the welfare of farmer, especially through access to good prices, market and resolving fertiliser repayment issues.
“Inventory credit system is timely in our district. Farmers will now benefit from it and solve their daily pressing issues,” he said.
In Nyagatare, the system is has been successful with over 800 tons of maize collected, cleaned, stored and sold to World Food Programme with 3,000 maize farmers in the district benefitting.
They target to reach out to at least 5,000 farmers by 2012.