The International Finance Corporation (IFC) plans to invest Sh138 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 Sh250 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 KCB Group -- this year.
The corporation in April disclosed plans to invest Sh1 billion 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.