By Faridat Salifu
The European Investment Bank (EIB) has inked a €100 million deal with the Bank of Kigali to bolster sustainable agriculture in Rwanda. The partnership aims to surmount barriers to accessing agricultural finance, particularly for agritech startups and agri-food industries in rural areas.
This recent funding, gradually disbursed, will aid in fortifying agricultural systems against the impacts of climate change, such as extreme weather conditions and erratic rainfall patterns.
The primary focus of the initiative, we gathered, is to foster the development of inclusive and resilient value chains, with special emphasis on horticulture and aquaculture, to ensure food security for Rwanda’s population of 14 million. Germany has pledged technical support for assessing climate risks faced by beneficiary companies.
This move aligns with COP28 recommendations, which urged development finance institutions to ramp up investments in food and agricultural systems, recognizing their crucial role in climate action, as highlighted by the Food and Agriculture Organization of the United Nations (FAO).
According to reports, Rwanda has demonstrated its commitment to this cause by prioritizing training in agro-ecology.
Notably, 2,000 farmers in Gahengeri have received training in 2022 through a Corporate Social Responsibility initiative by Green Light, a subsidiary of Hyundai Motor Group, which focuses on storage and drying facility management, irrigation, and husking.