Bank of Kigali and IFAD launch $21m financing programme for Rwanda’s farmers

The Farmers’ Organizations Financing Programme-Rwanda (FOFP-R) will combine $12 million from IFAD with $9 million in loans from Bank of Kigali.

The agreement was signed on September 4, 2026, on the sidelines of the Africa Food Systems Forum in Kigali.

The programme is expected to strengthen 215 farmer organisations, with 172 set to receive financing through grants or loans. More than 35,000 smallholder farmers are expected to benefit, particularly women and young people.

The programme will target value chains including maize, rice, cassava, dairy, vegetables and fruits.

IFAD Vice President Dr Gérardine Mukeshimana said the initiative represents a shift towards new approaches to financing agriculture by combining finance, institutional support, partnerships and entrepreneurship.

She said the programme is expected to reduce the risks associated with agricultural investment, attract additional private capital and expand opportunities for rural businesses, farmer organisations and smallholder farmers.

Agriculture employs more than 70% of Rwanda’s population and contributes nearly 25% of the country’s gross domestic product. However, limited access to finance remains one of the sector’s biggest constraints.

Agricultural lending continues to account for a small share of total loans provided by financial institutions, while farmer organisations face challenges including limited collateral, weak financial records and gaps in financial management.

IFAD estimates that nearly 70% of the financing needs of farmer organisations remain unmet.

Bank of Kigali CEO Dr Diane Karusisi said the partnership would combine financing with technical assistance to address some of these barriers.

“Farmer organisations are a cornerstone of Rwanda’s agriculture-based economy, yet for too long they have remained underserved by traditional lending models,” she said.

Karusisi said the partnership would enable Bank of Kigali to provide more innovative and inclusive financial solutions by combining capital with technical support to strengthen governance and financial management within farmer organisations.

How the $21 million will be deployed

Of IFAD’s $12 million contribution, $9 million will be provided as loans, while $1.8 million will be used to reduce lending risks and $1.2 million will finance technical assistance.

The technical assistance will help farmer organisations improve governance, financial management and their use of technology. It will also support Bank of Kigali in developing the tools and expertise needed to provide sustainable financial services to farmer organisations.

The programme will also benefit from $6 million channelled to IFAD through the Business Investment Financing Track (BIFT), an initiative under the Global Agriculture and Food Security Program (GAFSP).

BIFT provides concessional financing and grants to development finance institutions to support innovative financial solutions for smallholder farmers and early-stage agricultural and agribusiness enterprises.

GAFSP Director Shobha Shetty said the financing mechanism would help expand access to capital for underserved players in Rwanda’s agriculture and food sector, particularly smallholder farmers, women and young people.

The programme is being supported through IFAD’s financing facility for the private sector, with additional support from GAFSP and the Government of Canada.