USAID-Hinga Wunguke launches new partnerships to expand access to finance for farmers

Elias Hakizimana Dec 11, 2024Dec 11, 2024 0 Comments

By The Inspirer.

The USAID-funded Feed the Future Rwanda Hinga Wunguke Activity, implemented by Cultivating New Frontiers in Agriculture (CNFA), has on December 10, 2024, unveiled four new partnerships aimed at improving access to inclusive financial services for 500,000 farmers in Rwanda, with a focus on women, youth, and people with disabilities (PWDs).

Announced at a launch event, the initiative includes partnerships with Rwandan FinTech firms BK TecHouse and Exuus, which will co-invest a combined RWF 1.18 billion to enhance digital financial solutions for farmers and agribusinesses.

Scaling digital financial solutions

BK TecHouse will receive co-investment totaling RWF 515,597,000 (approximately $370,678), with Hinga Wunguke contributing RWF 198,597,200.

This funding will enhance BK TecHouse’s Smart Nkunganire System (SNS) credit-scoring model, allowing for integration with commercial banks and microfinance institutions (MFIs) to provide digital loans.

The initiative will reach over 430,000 farmers, addressing affordability and access challenges for subsidized input supplies.

Daniel Gies, Chief of Party for Hinga Wunguke, addresses participants during the launch event, emphasizing the importance of strategic partnerships in overcoming financial barriers for farmers and agribusinesses.

Exuus, another key partner, will benefit from a co-investment of RWF 664,633,610 (approximately $477,824), with Hinga Wunguke contributing RWF 199,495,500. This collaboration aims to increase financing access for at least 75,000 farmers, 70% of whom are women, facilitating loans worth RWF 5.2 billion ($4 million) over the next three years.

Empowering women and youth

In addition to digital solutions, partnerships with Rugori Investment Network (RIN) and the Rwanda Youth in Agriculture Forum (RYAF) will support women-, youth-, and PWD-led agribusinesses. These organizations will provide business development services to empower more entrepreneurs to access mainstream financing and actively participate in agrifood systems.

“We’re excited to build and consolidate strategic partnerships in the finance industry to address critical barriers that inhibit farmers and agribusinesses from accessing credit,” said Daniel Gies, Chief of Party for Hinga Wunguke, during the launch.

The event featured panel discussions and networking opportunities, highlighting innovative approaches to agricultural finance and exploring solutions to barriers in the sector.

The new partnerships complement Hinga Wunguke’s existing collaborations with the Bank of Kigali, Equity Bank, MFIs, and 13 SACCOs under the Association of Microfinance Institutions of Rwanda (AMIR).

Driving Growth Through Agriculture

The Hinga Wunguke initiative, a $29.7 million, five-year project (2023–2028), seeks to enhance incomes and nutritional outcomes by improving agricultural productivity and strengthening markets for high-value and nutritious crops. Operating in 13 districts, the program focuses on sustainable solutions to transform Rwanda’s agricultural sector.