According to Ministry of Commerce and Trade (2014), the dairy value chain has only 5% credit accessibility to farmers; 10% among Milk Collection Centers (MCCs) and 30% among milk kiosks with low average loan periods ranging from Rwf 200,000 (USD 247) to Rwf 2 million (2,472) from at least six months to one year. These low financing levels curtail the growth of the dairy industry in Rwanda. There exist huge financing opportunities throughout this value chain that financial institutions could tap into. Access to Finance Rwanda in partnership with Heifer international has developed an innovative project to enhance finance flow within the dairy value chain.
The overall project goal is to ensure farmers benefit from access to digital financial services leveraging dairy data to increase milk productivity and household incomes. We intend, under this 2-year project implementation framework, to ensure that 7,500 dairy farmers access payments via mobile phones and 7,200 dairy farmers purchase livestock insurance as risk mitigation mechanism.