Access to Finance Rwanda is currently supporting a microfinance Bank (Unguka Bank) and a microfinance institution (Umutanguha Finance Company Ltd) to develop and strengthen their institutional capacity to effectively finance agriculture. The project is addressing the inherent internal institutional challenges curtailing lending to the agriculture sector. The project will provide multi-dimensional and institutional-specific support on establishing a decentralized agricultural credit unit, strengthening staff capacity, product development and marketing.
Delivery of these outputs will help to de-risk agricultural credit, thus enable the two Financial Institutions (FIs) provide credit to agricultural clients efficiently.
In the next two years, we intend to establish fully functioning dedicated agricultural credit unit in Unguka Bank Ltd and Umutanguha Finance that is fully decentralised for maximum service delivery, efficiency and impact.
Whilst reducing the agricultural loan portfolio at a risk to below 5% and developing at least six agricultural loan products, we target to reach 25,000 people accessing and up taking agricultural financing products developed (15,000 farmers and 10,000 farmers for Unguka and Umutanguha respectively)