30 commercial farmers and agro-processors who previously lacked access to financing will now be able to expand their business by investing through an equity grant and loan package provided by the Fiji Development Bank and Ministry of Agriculture.
This comes as FDB and the Ministry of Agriculture have signed a Memorandum of Understanding to promote the expansion of commercial agriculture by strengthening financial assistance to farmers and agro-processors.
FDB CEO, Saud Minam says FDB is partnering with the Ministry under this programme which is an initiative of the Government to provide financial stimulus in the form of equity to 30 commercial farmers and agro-processors in improving farm mechanization, agricultural infrastructure, and agro-processing infrastructure support and equipment.
Minam says with the Ministry providing an incentive grant in the form of equity that would meet 20% of the total investment cost, FDB will provide the other 80% financial solution.
He says FDB recognizes the financial barriers in the agriculture sector and they work towards creating an enabling environment for farmers and agri-businesses to overcome such challenges.
The CEO says this incentive will help remove the barriers that prevent the full participation of farmers, producers and processors in accessing loans through digital channels from FDB.
He further says this package will help strengthen the food system, exports, create new market opportunities for farmers and processors, and help make supply chains more resilient to economic and natural shocks such as those caused by the pandemic and climate change.
Farmers whose farm sizes are five acres and above and are registered entities as well as those who are producers and processors of crop and livestock commodities can access loans from FDB of up to $250,000 with the Ministry providing an equity contribution of 20%.
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