Rwanda’s Parliament has asked the government to provide an update on its proposal to establish an Agricultural and Livestock Bank, citing persistent challenges faced by farmers and livestock keepers in accessing affordable financing.
The matter was raised on Thursday, July 9, 2026, during a parliamentary session in which Prime Minister Dr. Justin Nsengiyumva presented the government’s progress in strengthening the economy and improving citizens’ livelihoods.
Lawmakers Highlight Barriers to Agricultural Financing
MP Nizeyimana said the proposed Agricultural and Livestock Bank was designed to support the implementation of the Second National Strategy for Transformation (NST2), which aims to increase agricultural productivity by an average of 6 percent.
He noted that many commercial banks remain hesitant to finance agriculture because of risks associated with climate change, including droughts and other natural disasters.
MP Marie Thérèse Uwizeye also pointed to the disconnect between farmers and financial institutions, explaining that banks fear potential loan defaults while many farmers are reluctant to borrow due to uncertainty over repayment.
Government Says Existing Financing Programs Are Supporting Farmers
Responding to lawmakers’ concerns, Prime Minister Nsengiyumva said the government has already introduced several initiatives aimed at improving access to agricultural financing, particularly through the Development Bank of Rwanda (BRD).
Minister of Agriculture and Animal Resources Dr. Telesphore Ndabamenye said discussions on creating a dedicated Agricultural and Livestock Bank are still ongoing. However, he emphasized that BRD is currently capable of addressing many of the financing needs within the agricultural sector.
World Bank-Backed Project Expands Access to Affordable Loans
Government officials highlighted the World Bank-supported CDAT project, which offers agricultural loans at an interest rate of 8 percent through partner financial institutions.
The initiative works with eight commercial banks, seven microfinance institutions, and 16 SACCOs, with more than Rwf55 billion invested to support farmers and livestock keepers across the country.
According to officials, more than 2,500 farmers have benefited from the program so far, although they acknowledged that demand for agricultural financing remains significantly higher.
More Support Needed to Drive Agricultural Transformation
To encourage financial institutions to lend more to the agricultural sector, the government has also introduced a risk-sharing mechanism that covers up to 40 percent of potential losses on agricultural loans.
Officials said further analysis will continue as existing financing programs expand. While the government remains committed to improving farmers’ access to credit, they acknowledged that current funding levels are still insufficient to meet the financing needs required to fully transform Rwanda’s agricultural sector.
