The financial sector has been urged to support the agriculture industry, especially by funding farmers, agro-dealers and processors to help the sector grow.

Raphael Rurangwa, the in charge of planning and finance at the Ministry of Agriculture, said there was need for joint efforts to help improve agriculture productivity, noting that the sector plays a key role in the country's development and "should be given priority".

The agriculture sector contributes about 34 per cent, which he said is low. "We need to work together, change the way we are currently doing things to enhance agro-productivity," he said.

Agro-dealers, for instance, must provide farmers with the quality seeds and fertilisers and other inputs to spur productivity. "That's why the financial industry and private sector must become key partners for us to realise this goal," Rurangwa said.

He was speaking during a workshop organised by the International Fertiliser Development Centre-Privatisation of Rwanda's Fertiliser Import and Distribution System (IFDC-PReFER) and the agriculture and finance ministries to raise awareness among financial institutions of the opportunities to expand loans to agriculture industry. It was attended by farmers, agro-dealers, banks, Saccos, insurance firms and policy-makers.

Dr Charles Murekezi, the in charge of fertiliser programme at the ministry of Agriculture, said the government encourages farmers to apply fertilisers to boost crop output. He noted that since the liberalisation of trade was privatised last year, more farmers are able to access the input as the number of importers and distributors has gone up.

He said Rwf2.961 billion was invested in fertiliser trade in the current season (season 2014A) compared to Rwf2.1 billion in a similar period last year.

He urged banks and insurance firms to develop tailor-made products for farmers and input dealers, a move that would help uplift the sector.

Jean Paul Sindabeza, a fertiliser dealer in Rutsiro District, decried lack of collateral and urged Business Development Fund to support rural agro-dealers.

Agriculture employs 80 per cent of Rwandan population and generates about 45 per cent of the country's exports.

Source - http://allafrica.com/