The Rwandan government has outlined new priorities to increase financial support for farmers, cooperatives, and small and medium-sized enterprises engaged in green agriculture under the Fifth Strategic Plan for Agriculture Transformation.
The plan, launched in December 2024, seeks “to strengthen the country’s food systems, promote inclusive growth, and build resilience against climate change”, reported The New Times, quoting Ministry of Agriculture and Animal Resources (MINAGRI) Chief Technical Advisor Alexandre Rutikanga.
He spoke at a meeting in the capital city of Kigali in October 2025, outlining several priority investment areas that are essential for achieving a green and inclusive agricultural transformation.
The green finance mechanisms, he noted, include grants, concessional loans, blended finance, and green bonds. The objective is to engage insurers, banks, microfinance institutions and investors in supporting environmentally sustainable initiatives, he said.
Agriculture contributes about 25% of Rwanda's GDP and has grown by 5% between 2016 and 2024; however, access to agriculture insurance for farmers remains a critical bottleneck in agricultural finance and growth. Loans to farmers remain limited, largely due to the reluctance of financial institutions to invest in the sector. As of June 2025, agriculture, forestry, and fishing accounted for only 2.7% of total bank loans, the lowest among the top 10 financed sectors.
Agriculture requires a customer-centred approach, wherein insurers and bankers design products based on actual data about farmers’ production cycles and financial needs, said Mr James Gakuru of Radiant Insurance.
He said, "For example, a maize farmer could receive a six-month loan combined with crop insurance. If the farmer loses the harvest, the insurance can cover the outstanding balance, reducing default risk for lenders.”
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