New report shows limited access to agric loans #rwanda

A new report shows that inadequate access to loans by
farmers is still a big hindrance to the progress of the
agriculture sector.
The report was produced by Rwanda Civil Society Platform
(RCSP) in partnership with the Norwegian People's Aid
(NPA).
The survey, done in Nyaruguru, Gakenke, Gatsibo and
Ngororero districts, sampled 144 respondents, mainly
farmers and agronomists, between September and October.
"Thirty-nine per cent agreed that there are few institutions
that provide agricultural loans; 52 per cent said the loans
have high interest rates, and 36 per cent said financial
services are in adequate in rural areas," the report said.
The study added that 48 per cent of the respondents agreed
that the proceeds from output are too low to cover farming
costs.
Anick Rudakemwa, the information and outreach
coordinator at RCSP, said this year, the organisation had
chosen to fund a research project in agriculture, so it can
help in advocating for assistance.
According to Kabayiza, land remains less productive and
largely used on a subsistence level.
Distribution of arable land now stands at one hectare for
every nine Rwandans and is diminishing due to high birth
rates.
The obvious consequence is that the majority of rural
families who subsist on agriculture own less than 0.5
hectare, which is too small to earn a living.
The report said the total area under land use consolidation
has over the years increased eighteen-fold from 28,016
hectares in 2008 to 602,000 hectares in 2012.
Cultivated land countrywide is currently estimated at
1,755,320 hectares.
General Statistics:
Agriculture is the country's backbone, with about 84 per
cent of the total population dependent on it, according to
the National Institute of Statistics Rwanda (NISR).
Agriculture contributes to development as an economic
activity, as a livelihood, and as a provider of environmental
services, making the sector almost a unique instrument for
growth and poverty reduction. It contributes 32 per cent of
GDP.
Rwanda Agriculture Board envisions that by 2017, about 25
per cent of agricultural farm operations will become
mechanised, implying that one in every four farmers will
either use or hire mechanisation services.
As of 2013, only 13.5 per cent of farm operations were
mechanised.
"I am glad that this report brings to light some of the
challenges we face. I am optimistic someone will come to
our assistance," Jean Marie Mukire, a resident of Shyogwe
Sector, Muhanga District, said.