KCB banking hall in Rwanda. PHOTO | FILE
By MUGAMBI MUTEGI
The International Finance Corporation (IFC) plans to invest
$1.38 million in KCB Rwanda to boost lending to small scale farmers and
improve their land’s productivity.
IFC, the private lending arm of the World Bank, plans to
disburse the funds as part of its contribution to a $2.5 million project
which will benefit about 25,000 Rwandan farmers.
Farmer co-operatives selected for this project will also receive
advisory services aimed at improving their management as well as
increasing the production levels of maize and soy beans among
participating farmers.
“Financing to farmers will be used for seasonal working capital
needs such as input costs, land preparation, weeding, harvesting among
other needs,” IFC said in disclosure documents.
“Approximately 25,000 smallholder farmers are expected to
benefit from this initiative through higher productivity levels, better
crop quality, and lower post-harvest losses, and therefore higher and
more stable revenue stream.”
This is the second time that the IFC is extending credit to KCB
Rwanda – a fully owned subsidiary of the Kenyan-based KCB Group -- this
year.
The corporation in April disclosed plans to invest $10 million
into the bank, adding that the money will be spent to boost lending to
small businesses and the housing sector.
Demand for housing remains high in Rwanda whose economy is still rebuilding after a destabilising civil war 22 years ago.
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