A $21 million financing injection from the International Fund for Agricultural Development (IFAD), in partnership with Bank of Kigali, is set to expand access to finance, technology and technical support for small and medium-scale farmers, in a move aimed at boosting agricultural productivity and strengthening food security.
The financing will specifically help farmers overcome some of the biggest obstacles to expanding their operations, including limited access to affordable credit, modern agricultural technology and professional technical support.
Through the initiative, farmers will be able to access financial services to invest in agricultural production, including productive assets and activities across different value chains.
The programme will also provide technical assistance designed to help farmers adopt improved farming practices, modern technologies and more efficient production methods.
The combination of financing and technical support is intended to ensure that farmers do not simply receive capital, but have the knowledge and tools needed to turn that capital into higher yields, stronger businesses and increased incomes.
IFAD Vice-President Dr. Gérardine Mukeshimana said agricultural investment remains critical to building resilient food systems and improving livelihoods.
“Investing in agriculture is investing in food security, livelihoods and the future of our communities,” Mukeshimana said, stressing the importance of putting greater resources behind farmers.
The partnership with Bank of Kigali is expected to widen the financial opportunities available to farmers who may otherwise struggle to meet conventional lending requirements.
The $21 million investment will also support efforts to modernise agriculture by encouraging the adoption of technology and improved production techniques.
This could help farmers increase productivity while making agricultural enterprises more commercially viable.
For Rwanda, where agriculture remains a major source of employment and income, stronger access to capital could also stimulate job creation and strengthen agricultural value chains from production and processing to markets.
The initiative comes as Rwanda seeks to transform agriculture from predominantly small-scale production into a more productive and market-oriented sector capable of generating higher incomes and contributing more significantly to economic growth.
Dr. Mukeshimana described the financing as an important step toward supporting farmers, modernising agriculture and creating employment opportunities.
The broader objective is to ensure that investment reaches farmers at the production level, enabling them to acquire the resources, technology and expertise required to produce more, earn more and contribute to a more secure food system.
The $21 million injection therefore represents more than agricultural financing it is an investment in the productive capacity of farmers and the wider rural economy.
