On Thursday, September 23rd, UOB signed a DCA (Development Credit Authority) guarantee agreement with USAID (US Agency for International Development). Under this program, USAID will guarantee up to 50% of all agricultural loans, except coffee and tea, registered under the program. The total loan amount under this guarantee program can go up to $1.57 million over the next five years while this maximum loan amount may increase further if the usage is good. Currently UOB is the only active bank in Rwanda under this program.
Dennis Welder, Mission Director of USAID in Rwanda came to our office and we signed the agreement. After the signing, Dennis and his colleagues took a tour of the bank, including demonstration of the biometrics technology used for our deposit clients. He promised to come back to open a savings account.
Along with other risk mitigation programs, USAID DCA guarantee program will help us take the next step into our agricultural lending. We are currently looking at the casava sector for post-harvest management and processing. I pray that our inroad into agricultural lending will not be too rough. - Jeffrey