Hinga Weze has negotiated a partnership with Equity Bank Rwanda Plc for smallholder farmers to access a number of financial services including loans of Rwf2.52 billion, part of which will also facilitate farmer cooperatives, aggregators and agro-dealers.
The farmers to benefit from the joint facility are involved in Irish potato, horticulture, maize and poultry value chains.
According to the memorandum of understanding signed June 30, 2020, Equity Bank pledged to facilitate 5,000 farmers to access credit with a value of loan Rwf500 million while 25 farmer cooperatives will access Rwf300 million in loan value.
Also, five aggregators are expected to receive credit worth Rwf1.5 billion and 110 agro-dealers will access credit worth Rwf220 million in value of loan.
Through the same partnership, 10,000 farmers and 50 cooperatives will be trained in post-harvest handling, storage techniques, good governance and financial literacy.
Two buyers will adopt an Off-take Guaranteed WRS Model while one product will be developed or reviewed.
Funded by USAID, Hinga Weze has so far entered into partnership with 25 financial institutions including commercial banks, MFIs and SACCOs, and has facilitated access to over Rwf 3.5 billion (US$3.8m) of value of agriculture loan out of US$ 5.6 million as value of agriculture-related financing expected to be accessed in five years.
About 41,552 farmers have also participated in microfinance and lending programs, out of 63,746 farmers targeted by the program in five years.