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Rwanda’s Small and Medium Enterprises (SMEs) are set to benefit from a significant financial boost with the East African Development Bank (EADB) launching a $36 million (Rwf 47 billion) fund specifically designed to address their financing needs.
The fund aims to support up to 500 SMEs across key sectors, including agriculture, transport, commerce, and manufacturing. It will be administered through local financial institutions such as the Development Bank of Rwanda (BRD), Duterimbere Imf Plc, AB Rwanda Plc, and Letshego Rwanda.
Many SMEs in Rwanda have struggled to recover from the economic impacts of the COVID-19 pandemic, facing severe financing challenges. Traditionally, local banks have been hesitant to lend to sectors like agriculture, manufacturing, and mining due to perceived risks.
Vivienne Yeda, the Director General of EADB, expressed gratitude towards the Rwandan government for its proactive efforts in supporting SMEs. “This partnership is a crucial step toward enhancing economic and social development within our communities,” she remarked, acknowledging the significant role SMEs play in East Africa’s economies despite facing numerous financial hurdles.
EADB will directly channel funds through various financial institutions and government channels to ensure effective distribution. Yeda reiterated EADB’s commitment to fostering SME growth through financial partnerships, underscoring the bank’s historical role in regional economic development over the past fifty years.
Mutesi Rusagara, the State Minister for Resource Mobilization and Public Investment, highlighted the importance of SMEs in Rwanda’s economic framework. “SMEs are integral to our GDP and play a vital role in inclusive economic development,” Rusagara noted. She emphasized their capacity to expand the tax base and generate employment, with over 2.5 million people employed in this sector.
Pitchette Kampeta Sayinzoga, CEO of BRD, celebrated the new credit line agreement, reinforcing the enduring collaboration between BRD and EADB. “As a government-owned institution, BRD is dedicated to addressing the financial challenges faced by SMEs. Our partnership with EADB is pivotal in providing sustainable, affordable financing to the local private sector,” Sayinzoga affirmed.
Ngabonziza Alphonse, CEO of Duterimbere Imf Plc, expressed optimism about the fund’s potential to enhance access to finance for SMEs. “This fund will enable us to provide more resources to our clients, addressing one of the major challenges SMEs face in Rwanda—access to finance,” Alphonse said.
This initiative marks a significant milestone in supporting Rwanda’s SMEs, enhancing their ability to grow and contribute further to the nation’s economic prosperity.
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