Rwanda: Grain farmers excited as banks move to disburse EAX loans

Tanzania Graduate Farmers OFFICIAL Blog Chama cha Wakulima Wahitimu Tanzania

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.

Workers package maize at an EAX warehouse. Grain farmers working with EAX will get soft loans soon.

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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About Graduate Farmers

TGFA is a civil society organization whose membership base constitute highly learned, capable, experienced and aspirants of becoming commercial farmers in Tanzania. Membership also comprises agricultural consultants (researchers) and retired people from the civil service sectors who deal with agriculture and agriculture marketing in general. The major aim of TGFA is to develop, promote, and influence structured business and initiatives that encourages and motivate youth especially graduates to tap in profitable agriculture value chains in both rural and urban areas in Tanzania with defined rules and regulations. TGFA also aimed at bringing dialogues for advocating improvement of the policy and enabling business environment in the country economy, strengthen information dissemination, technology and innovation, agribusiness development skills, business linkages and reduce constraints along the sector value chain. The word ‘graduate’, as it appears on the title, does not strictly mean that one has to have university degree, rather a catch word that connotes a paradigm shift in thinking, especially in the developing countries, that farming is largely for the unprivileged, most less educated and poor people in rural areas towards a new thinking that farming can only be meaningful and actual backbone of the economy if and only if the highly learned, capable (in terms of finances and other resources) and inspired individuals in urban areas embark into it even as part-timers.
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