Access to finance still remains one of the major challenges affecting farming, agro processing and export development in the country-The World Bank Rwanda country office has said.
In its first economic update launched Tuesday at the World Bank Country office, the bank said that the agricultural sector continues to suffer from insufficient access to finance and insufficient investment capital for farming.
This is despite the central bank coming up with an accommodative monetary policy in 2010 that was expected to see a growth in credit to the markets.
Central Bank Governor Francois Kanimba said that the economic crisis in 2009 increased risks in the financial markets; something that explains the delay by some of the financial institutions to react to different economic stimuli implemented by central banks and governments.
However according to World Bank’s senior economist Brigit Hansl, it is also financial literacy on a basic level on the part of the farmers that has to be developed first in order to allow them to even have more access to finance.
The report targets policy makers, business leaders and other market participants and the community of analysts engaged in Rwanda’s economy. The next update will be out on the spring of 2012.