Rwanda | Kamonyi: new strategies put in place for preventing poverty
Members of ‘Ubutabera bwunga’ cooperative in Mugina sector in Kamonyi district decided to give their agriculture production as the collateral security in the bank to obtain credit instead of selling their produce on low price during the harvest time.
Members of the cooperative that cultivates maize in Kavunja swamp were trained by a project that promotes agricultural production in Kamonyi district (SAK) on storage and giving their production as security to acquire loans and do their business without selling off their production on little prices.
Sylvester Hitimana the president of ‘Ubutabera bwunga’ cooperative says that every member brings the produce to cooperative’s granary called ‘KAKUNI’ where it is stored and signed off as the collateral security and the cooperative acquires a loan waiting for the market to stabilize and sell their produce.
The cooperative gives each member the credit equivalent to 2/3 of the value money of the produce put in the granary from the Associations of Microfinance Institutions (RIM) and the 1/3 is given to them when their produce is sold.
Dative Nibasenge one of the members of this cooperative says that this program has helped many farmers not to sell their produce out of pressure during the harvesting time when food is in plenty and prices are low and be hit by poverty in a short time after.
The training on storage of produce and using them for collateral security was provided by Caritas Rwanda through SAK project with the support of European Union.