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Kenya: Equity Bank Loans Target Livestock Sector
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Business Daily (Nairobi)
10 July 2008
Posted to the web 11 July 2008
Steve Mbogo
Equity Bank and Care International have jointly launched a new product specifically targeting livestock traders and ranchers.
Mifugo Biashara aims to provide affordable credit to livestock traders who provide market outlet for pastoralists, to boost their overall income and ultimately uplift their standard of living.
The facility will be used by livestock traders to purchase livestock, and later sell them to established processors such as Kenya Meat Commission.
The amount of money advanced is pegged on an individual's requirements and ability to repay. The loan repayment period is up to 12 months. "We want to avail affordable credit to the livestock sector to boost production.
Ultimately, we want to make Kenya self- sufficient in livestock products both for domestic consumption and for export," said James Mwangi, the Equity Bank CEO.
Dr Mwangi spoke of plans by the bank to open new branches in Wajir, Mandera, Moyale and other towns within the province to serve the predominant pastoralist community better.
Mifugo Biashara was launched by the Livestock and Development Assistant minister Aden Duale in Garissa.
"The economy of Garissa district has been growing rapidly and that is why we are having immense interest in the town by financial institutions. What we need are opportunities that will help us address our problems." Equity bank will transfer loans for the purchase of livestock directly to CARE pastoralist production groups. This will be done in accordance with the bank's credit policies and procedures.
The beneficiaries of the loan, however, have to meet the loan requirements, including purchasing livestock from groups trained by CARE against a supply contract with the pastoralists. This arrangement is envisaged to address the challenge of access to market which has been a major drawback to livestock business on the part of pastoralists and traders.
The launch of Mifugo Biashara comes after the successful launch of Kilimo Biashara, a Sh3 billion credit facility to assist small scale Kenyan grain farmer's access affordable credit.
The joint venture between the bank, the Alliance for a Green Revolution in Africa (AGRA) in partnership with the International Fund for Agricultural Development (IFAD) through the Ministry of Agriculture will see the bank lend credit to 2.5 million farmers, and 15,000 agricultural chain value members such as agro dealers, agro-processors, food processors and importers.
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Equity Bank has also launched Uvuvi Biashara, a credit facility targeting fish farmers and traders in the country.
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