Low interest loans to thousands of farmers have been promised through a law passed by the Parliament of South Sudan, which provides for the establishment of an Agricultural Bank financed largely with public funds.
According to the Catholic station Radio Bakhita, the passage of the law was announced this week by Paul Logale, President of the Parliamentary Committee for Economy, finance and development. Logale said that the Bank will be funded 60% by the State and 40% by private individuals.
The law provides that the institution offer interest loans and other services in accordance with favorable conditions. Despite the fact that South Sudan’s prospects for economic growth are related largely to oil deposits, the majority of the population is employed in agriculture. The development of the primary sector is hindered by both the low prevalence of agricultural machinery and by inadequate infrastructure, particularly roads. South Sudan became independent from Khartoum in July 2011, after a civil war that lasted more than 20 years.
[VG/BO]