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Farmers cry foul as banks shun agric lease products

Published on June 07, 2016

The Government of Rwanda targets to increase the level of agriculture mechanisation to 25 per cent next year, and 50 per cent by 2020 under its Agriculture Mechanisation Strategy. However, mechanisation uptake, especially by small farmers, is still low. This is despite the fact that a new law was adapted last year, where farmers can buy or hire farm equipment. 

Sylvestre Minani, a farmer from Bugesera District, said many farmers have not yet embraced mechanisation due to lack of enough tractors, and the high cost of machinery, coupled with lack of credit facilities and high loan rates levied on farmers. He said this will make possible for farmers to get lease facilities.

However, State Minister for Agriculture Tony Nsanganira has said the situation will soon change, saying government has been discussing with banks and other stakeholders to support the programme. Read more. Source| New Times