The deal between the East African Exchange (EAX) and selected banks to offer grain farmers low interest loans has started to bear fruit as the first batch of beneficiaries prepare to receive funding from Ecobank.
Alfah Kadri, the EAX chief executive officer, said over six farmers are awaiting credit from the bank under the arrangement.
EAX signed the deal with the bank last year to provide finance under the warehouse receipt system.
In an interview with The New Times, Kadri said the bank was evaluating the applications and would soon give out loans to the first batch of farmers.
The deal will benefit farmers belonging to co-operatives that store their grains at EAX warehouses.
When farmers deposit their produce at EAX warehouses, they are issued receipts, which they can use as collateral under the warehouse receipt system to acquire loans.
“We have already submitted the farmers’ warehouse receipts to…
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