BDF Partners with Hinga Wunguke Project to Boost Rwandan Agribusiness

BDF Partners with Hinga Wunguke Project to Boost Rwandan Agribusiness

Cultivating New Frontiers in Agriculture (CNFA), representing the Feed the future Hinga Wunguke Activity have on December 12 signed Memorandum of Understanding(MoU) with the Business Development Fund (BDF) to support farmers and agribusiness in Rwanda to access finance.

Hinga Wunguke, a USAID-funded Feed the Future initiative of 5 years and $28 million USD, will work with BDF and its partners in the agricultural sector to mobilise additional financing worth a total of RWF 25 billion for co-investments with other financial institutions supporting the agricultural sector.

The fund aims to address the issues of insufficient collateral for loans, which often limits farmers and agribusiness from accessing financing.

According to Chief Officer of BDF, Vincent Munyeshyaka, and the chief of the Party for Hinga Wunguke, Daniel Gies, the fund will work with BDF and its partners in the Agricultural sector to mobile additional financing for co-investment with other financial institutions supporting the Agricultural sector.

” The challenge farmer continue to face is the lack of collateral which limits their capacity to access the much-needed financing and we expect to collaborate with BDF and other partners to manage this challenge” said Daniel Gies.

Usually, BDF provides a comprehensive set of supportive initiatives including a partial credit guarantee, matching grants, training, micro-leasing grants and other schemes designed to support the growth of SME’s.

“The expectations of this partnership is that Hinga Wunguke Wil put in measures to de-risk farmers so that the financial institutions can increase their appetite to invest in agriculture “.

Through the BDF partial guarantee scheme that covers between 50% and 75% of the collateral required by the lending institutions, farmers and agribusiness will be able to access the much-needed financing for procuring farm inputs such as fertilizers, post-harvest management and improving access markets and benefiting from many other initiatives.

Furthermore, Hinga Wunguke has initiated with various financial institutions in Rwanda, including Bank of Kigali and 186 SACCOs through the partnership with the Association of Microfinance Institutions in Rwanda (AMIR) in the 13 districts where Hinga Wunguke operates.

It is expected that the implementation of the partnership start after the holiday period and implement the joint activities over the course of next two years .

It is expected that the partnership will drive impact on increasing investment in Agriculture so as to strengthen farmers’ links to markets and their incomes, while also increasing the availability and consumption of nutritious foods.

The five-year Feed the Future Rwanda Hinga Wunguke Activity aims to increase incomes and improve nutrition in Rwanda by sustainably increasing agricultural productivity and strengthening the domestic consumption and market for high-value and nutritious agricultural products.

Chief Officer of BDF, Vincent Munyeshyaka, and the chief of the Party for Hinga Wunguke, Daniel Gies

THE RWANDA SUN 

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Johnson NDEKEZI

Johnson NDEKEZI is a Journalist covering all topics in the Entertainment World as well as Political and current Affairs.

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