Kigali, Rwanda – A lifeline has been extended to Rwanda’s struggling Small and Medium Enterprises (SMEs) with the launch of a $36 million (Rwf 47 billion) fund by the East African Development Bank (EADB). The credit facility, targeting up to 500 SMEs across sectors such as agriculture, transport, commerce, and manufacturing, is expected to be a game-changer for businesses still reeling from the COVID-19 pandemic.
Local lenders including the Development Bank of Rwanda (BRD), Duterimbere Imf Plc, AB Rwanda Plc, and Letshego Rwanda will channel the funds to eligible SMEs.
The move comes as a relief to the sector, which has faced significant hurdles in accessing financing. Many banks have been hesitant to lend to businesses in high-risk sectors like agriculture, manufacturing, and mining.
Vivienne Yeda, EADB Director General, expressed gratitude to the Rwandan government for its support of SMEs and emphasized the bank’s commitment to fostering economic growth in the region. She acknowledged the financial challenges faced by SMEs, highlighting their crucial role in East Africa’s economies.
Mutesi Rusagara, Rwanda’s State Minister for Resource Mobilization and Public Investment, underscored the significance of SMEs to the country’s economy, noting their contribution to GDP and employment. With over 2.5 million people employed by SMEs, the sector is seen as a key driver of economic growth and tax revenue.
BRD CEO Pitchette Kampeta Sayinzoga welcomed the partnership with EADB, highlighting the bank’s focus on providing sustainable and affordable financing to local SMEs. She acknowledged the financing challenges faced by SMEs and stressed the importance of external funding to address these issues.
Ngabonziza Alphonse, CEO of Duterimbere IMF PLC Bank, expressed optimism about the increased access to finance for SMEs through the new fund. He highlighted the lack of financing as a major challenge for the sector and expressed hope that the fund would address this issue.
