Bank of Kigali (BK) officials, on Friday, November 24, engaged players in the agriculture sector, especially exporters, on some of the bank's financing solutions aimed at helping them grow.
Held under the theme "Financing for Growth: Empowering Rwandan Agri-Exporters," the event aimed at networking with agri-exporters to interest them in the bank's offerings for them and how they can play a pivotal role in strengthening Rwanda's position in the global agricultural market.
This year, BK announced plans to invest Rwf 150 billion over the next five years to support the agricultural sector in the country. The move was aimed at boosting production, increasing exports, and creating more employment opportunities for Rwandans.
Friday's event brought together BK's employees and clients to talk about the services that the bank has to offer in support of their ongoing development projects.
According to Alexis Bizimana, the Head of Agribusiness at BK, some of the bank's users are not well-informed about agriculture financing, and that is one of the reasons why such an event was organized.
"Our ambition is to offer up to Rwf 150 billion worth of agriculture financing in five years," he said.
"We have already created a number of products, and have the right data to focus on the specificity of the sector," he added.
BK works with other partners to select the value chain to work with and identify business opportunities.
An example of a loan is one for cash crop exports like tea, coffee, or horticultural products. Here, the bank can offer up to a Rwf 1 billion loan that is payable within 12 months to allow the farmers or exporters to finance various processes involved, including harvesting, processing, and shipping.
"As you know, more than 50 per cent of our country's exports come from agriculture, especially in these key value chains of tea, coffee, and horticulture," Bizimana said.
The exporters can pay off the loan after receipt of produce sales.
Bank officials say they have a responsibility to support the country's agriculture sector because it employs over 60 per cent of the population.
"We seek to finance agricultural projects with huge commercial potential and domestic or export level," reads a statement from BK.
The bank also provides training and mentorship to farmers and agribusinesses to improve their skills and knowledge in modern farming techniques, value chain development, and marketing.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
This is aimed at increasing productivity, improving the quality of products, and creating new market opportunities for Rwandan agricultural products.
The bank's investment in the agricultural sector supports Rwanda's broader goals of transforming its economy through increased productivity, value addition, and exports.
The government has set a target of increasing agricultural exports to $1.5 billion by 2024, up from $400 million in 2019.
One of the key ways that BK supports the agriculture sector is through its partnership with USAID's Feed the Future Rwanda Kungahara Wagura Amasoko project, which financially backs the bank's endeavours.
Jonathan Kamin, USAID's Mission Director for Rwanda, called upon exporters to make use of the financing opportunities provided to them, make connections, and ask questions.
"Your exports and the revenue generated are essential to the health, welfare, and sustainability of the economy," he said.
Levi Gasangwa, BK's Chief Business and Corporate Solutions officer, said the bank's solutions can be an enabler for the farmers and exporters to realise their dreams.
"It is a tool for your business to thrive. I think these new products can be a catalyst for change because we don't just want agribusinesses to be just there for subsistence; we want them to compete on the international scene," he noted.
