Bank South Pacific signed a memorandum of understanding (MOU) with the  Agricultural Marketing Authority in a deal that will benefit Fijian farmers.

The MOU opens access to financial services for farmers registered with the Agricultural Marketing Authority (AMA).

Speaking at the MOU signing event today, the Minister for Agriculture, Waterways and Environment, Mahendra Reddy commended the new alliance between the two leading organisations describing it as a step in the right direction.

“In some areas, you will be the first to reach out to them, and they’ll always remember the first financial instrument,” Mr Reddy said, in what he described was a bold step for the bank.

“This is a game changer.”

BSP will register farmers with SMS banking, for AMA-contracted farmers and existing suppliers, in what will be a first for the cluster of AMA-farmers, Mr Reddy said.

He said only 20 per cent of the agriculture sector was operating at full capacity.

“We need to commercialise agriculture.

“We need to unleash the agriculture potential in this country.

“The rural sector plays an important role because a whole lot of money is locked up in that area.

“Unless money changes hands, money can’t grow.”

BSP Country Head Haroon Ali said the bank would cover costs of services to rural farmers.

“BSP is reaching out to farmers and the micro-finance community.

“We will provide them with a tailor-made account to start off with benefits and features that include four free electronic banking transactions per month.

“There won’t be any maintenance fee on this account.

“They have 24/7 access to their bank accounts through our digital banking solutions, while customers can transact at any of our 41 rural agencies and post offices.”