We have officially launched our latest three-year project ‘Inclusive Finance for Agricultural Value Chains in Rwanda’, in partnership with Jersey Overseas Aid. The project was launched in Kigali last week, with local partners, cooperatives and clients, government representatives and district mayors, industry bodies and NGOs.
Rwanda remains one of the poorest countries in the world with just under half the population living on less than $2.15 per day. Extreme poverty in the Southern region, in particular, is on the rise where 32% of the region’s population do not own any assets, have no income and live below the poverty line. This project will support rural households in this Southern and Western Region.
“This work is essential as it contributes to improving the livelihoods of smallholder farmers and other people in rural areas through increased agricultural productivity and income. It provides farmers with skills through relevant trainings and eased access to reasonable financial facilities.”
Shema Placide, Regional Manager Francophone-Africa at Opportunity International.
The project will equip 24,000 smallholder farmers in Rwanda, including women, young persons and those living with a disability, to work their way out of poverty. With the support of Finance Service Providers (FSP), these farmers will be given access to loans, savings and training in Good Agriculture Practice and finance. The 24,000 farmers will be digitally profiled so that we can provide vital data to the FSPs on their financial and agricultural activities, helping them to build a better understanding of the client’s needs. The project will also support 48 Farmer Groups that are vital avenues of support and a place to access finances for local farmers, working with them to improve their governance and organization, and improve their ability to negotiate on behalf of their members.
Felicia Uwimbabazi is a client from one of the Village Savings and Loans Associations (VSLAs) that is benefitting from the support of this project. She has shared the impact the project has had on the group and its members:
“We applied for a loan of RWF 1,500,000 (£921.11) and bought pigs, who gave birth to many piglets, and enough manure to fertilize our land. Our yield has increased and we are now able to get enough food to feed our children, there is no longer problems with malnutrition. Our group has been able to grown from savings of RWF 200 (£0.12) to RWF 3,000 (£1.84) as an individual contribution per week.”
During the project, we will partner with four FSPs to identify gaps, develop innovative products and services, manage risk and build more inclusive services. The training will empower and upskill the farmers, leading to improved yields and climate resilience, as well as increasing their financial and digital literacy, which will enable them to make informed use of financial services.