Sh200 million credit deal to give grain farmers a boost
ABC Bank CEO Shamaz Savani (left) with East Africa Exchange board chair Jendayi Frazer at a past function. FILE PHOTO |
What you need to know:
ABC Bank in partnership with the East Africa Exchange (EAX) and the East Africa Farmer Federation (EAFF) plan to launch a Sh200 million grain trade finance facility.
Small-scale grain farmers will soon be able to access affordable credit services from ABC Bank.
The lender in partnership with the East Africa Exchange (EAX) and the East Africa Farmer Federation (EAFF) plan to launch a Sh200 million grain trade finance facility.
Smallholder farmers will also be able to access post-harvest management services provided by the regional commodity exchange and link to markets and agricultural financing.
In addition, the traders, millers and farmers will be able to access data on type and quality of products by locality through the EAFF’s virtual granary platform e-granary.
EAAF represents approximately 20 million farmers across East Africa.
EAX board chair Jendayi Frazer and Uasin Gishu County Governor Jackson Mandago at a stakeholder’s forum said the initiative will have a positive impact, especially the warehousing services that will solve challenges relating to post-harvest losses.
They were speaking in Eldoret in Kenya’s Rift Valley where Rwanda-based EAX opened four warehouses in February.
During the forum, ABC Bank’s Head of SME Banking Lee Gachomba called for the introduction of electronic warehouse receipting in Kenya as it ensures farmers get returns commensurate to their aggregate farm inputs and that they are insulated against losses incurred due to lack of proper storage facilities at the farm level.
EAX manages warehouses, warehouse receipt systems, grain cleaning and collateral management services and also deploys a Nasdaq electronic trading platform.
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