New loans extended to farmers by financial institutions in Rwanda rose by 177% in the first quarter of 2026, a development economists say could help boost agricultural productivity if supported by stronger cooperation between the government, financial institutions and the private sector.
According to the latest report from the National Bank of Rwanda (BNR), total new bank lending increased by 22% during the first quarter of 2026, while agriculture’s share of new loans rose from 2.5% to 5%.
New loans extended to the agriculture sector during the quarter increased by 177% to Rwf57 billion.
Economists say the increase is a positive development, but argue that greater investment by both the government and private sector will be needed to translate improved access to finance into higher agricultural output.
Data from the National Institute of Statistics of Rwanda (NISR) show that production of major crops, including bananas, potatoes, beans, maize and rice, increased during the 2026B agricultural season.
Speaking to Rwanda Broadcasting Agency (RBA), agricultural researcher Prof. Alfred Bizoza said agriculture should receive greater attention, including through increased public investment and easier access to financing.
“Financial institutions investing in agriculture are often very few, and they account for no more than 2%,” Bizoza said.
Bernard Nsengiyumva, Director of the Financial Sector Development Department at BNR, said that although progress has been made, challenges remain in ensuring that farmers can access loans more easily and quickly.
He said BNR and commercial banks are working on mechanisms that would allow lenders to access comprehensive information about farmers, helping them assess borrowers and make lending decisions with greater confidence.
“BNR and other partners are looking at establishing a platform that provides comprehensive information about farmers so that banks can have confidence in them and extend financing,” Nsengiyumva said.
He added that efforts are also being made to shorten the time it takes to process agricultural loans, noting that farmers sometimes receive financing after the planting season has already passed.
“Another issue is making the loan process faster. In some cases, it used to take a long time, and farmers would receive the money after the planting season had passed. We are therefore reviewing the process to ensure that all the necessary information is available and that farmers receive financing at the right time for planting,” he said.
Under the government’s five-year National Strategy for Transformation (NST2), Rwanda aims to increase the share of bank lending going to agriculture to 10% by 2029, up from 6% in 2024.
