Agricultural lending in Rwanda remains constrained. There are many challenges encountered in the sector, and these include but not limited to; inadequate agribusiness lending skills, outreach inefficiency in rural areas for appraisal and monitoring of the dispersed clients, weaknesses in existing financial products and undiversified agricultural portfolio.
In addition, the constrained marketing budgets are not supporting the effective clients’ awareness creation for the agricultural financial products and services.
To address the challenges above, AFR has supported Umutanguha Finance Company ltd as of one the financial institutions that AFR has continued to collaborate with on the mission possible to register a deeper and higher quality financial inclusion in Rwanda. This particular micro financial institution drew attention from AFR because of its desire to work with clientele engaged in agriculture business.
AFR has therefore facilitated the micro financial institution to establish a well-functioning agriculture financing unit. Since the establishment of the effective lending unit designed to facilitate agribusiness at the MFI in 2016, some achievements worth writing home about have been registered.
Here is the list of milestones thus recorded