Rwanda aims to modernize the agriculture sector, sets to increase lending to 10.4 percent by 2024

Rwanda aims to increase agriculture sector lending from 5.2 percent of total financial institution loans to 10.4 percent by 2024. The objective is to modernize the sector, which currently accounts for nearly a third of the country’s GDP (GDP). Even though agriculture has played a critical role in poverty reduction over the last decade, its share of total loans to the economy by financial institutions has remained stable at around 5%. The industry has also had a significant impact on food and nutrition security. Considering the current situation and trends, industry experts said, achieving financing targets will require redoubling efforts. Agriculture faces several challenges, especially due to land degradation and soil erosion, high vulnerability to climate change, limited land, low levels of productivity for both crops and livestock, and weak processing capacity, according to information from the Ministry of Agriculture and Animal Resources (MINAGRI) Joseph Gafaranga, a farmer ...