Africa Governments Frustrated by Weak Farmer Credit Schemes

Though some African governments have invested significantly in agricultural credit schemes, weak oversight roles and interest rate distortions undermine their performance. This is because commercial banks are reluctant to effect borrower friendly terms demanded by governments due to internal management hurdles and limited sensitisation within the farming community. The high interest rates were mostly blamed on steep administrative costs incurred by participating banks that rendered the loans very risky in the market contrary to government expectations. Read more here.
Bernard Busuulwa

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