European Investment Bank and BRD give €8 million boost to SMEs
The European Investment Bank (EIB) has signed an agreement with the Rwanda Development Bank (BRD) amounting to €8 million to support small and medium enterprises.
The loan was signed earlier today at the EIB’s headquarters in Luxembourg by Jack Nkusi Kayonga, CEO of BRD and the EIB’s Vice President responsible for sub-Saharan Africa, Plutarchos Sakellaris.
“Economic growth in Rwanda is setting the pace for the wider Great Lakes region and across East Africa.” Sakellaris said.
Kayonga for his part recognized the EIB’s contribution to Rwanda’s progress. “Working closely over many years with the EIB has enabled numerous Rwandan companies to benefit from long-term loans,” he remarked. “This cooperation has also allowed the BRD to address crucial challenges on the path to international banking best practice and ensuring our staff can contribute to private sector growth in Rwanda.”
The European Investment Bank credit line will allow BRD to provide business loans in American dollars, Euros and Rwandan francs. Funding will focus on agriculture, services, tourism and industry
The Rwanda Private Sector Support Initiative, which represents the EIB, will also include a technical assistance programme to enable BRD to broaden lending activities, advise on electronic banking, improve risk and credit analysis and enhance the quality of their portfolio based on international best practice. The assistance will also be provided to addressing challenges of corporate governance, corporate social responsibility and internal audit.
17 Rwandan businesses have so far benefited from BRD support using the previous EIB financed programme. This funding led to over six hundred new jobs being created in agricultural, tourism, education and telecommunications companies.