The $21 million Farmers’ Organizations Financing Programme–Rwanda (FOFP-R) was launched on 4 September 2026 through a partnership involving the International Fund for Agricultural Development (IFAD), Bank of Kigali and Aceli Africa. The programme aims to expand access to finance for Rwanda’s agricultural sector, particularly farmer organizations that have traditionally struggled to obtain commercial credit.
The financing package totals $21 million, comprising $12 million from IFAD and $9 million in co-financing from Bank of Kigali. IFAD’s contribution includes a $9 million loan, $1.8 million risk-sharing grant and $1.2 million technical-assistance grant. The structure is intended to reduce lending risks while strengthening the capacity of farmer organizations to manage financing effectively.
The programme is expected to strengthen approximately 215 farmer organizations, with about 172 organizations projected to receive financing. Overall, more than 35,000 smallholder farmers are expected to benefit. Particular attention will be given to women and young people, while financing will support important agricultural value chains including maize, rice, cassava, dairy and horticulture.
A central objective is to address Rwanda’s agricultural financing gap. According to IFAD, approximately 70% of the financing needs of farmer organizations remain unmet. Many cooperatives and producer organizations face difficulties accessing bank loans because of limited collateral, weak financial records and insufficient organizational and financial-management capacity.
The programme therefore combines finance, risk-sharing and technical assistance rather than providing loans alone. Technical support will help farmer organizations improve governance, financial management and digital capacity, while the risk-sharing mechanism is designed to encourage commercial lenders to finance agricultural organizations that might otherwise be considered too risky.
The initiative is also significant for Rwanda’s broader agricultural transformation strategy. With roughly three-quarters of Rwanda’s agricultural production coming from smallholder farmers, improving access to productive capital could help farmers invest in inputs, processing, storage and market access. The key measure of success, however, will be whether the programme translates the $21 million investment into higher productivity, stronger farmer organizations and increased incomes for the more than 35,000 targeted farmers.
