Kampeta Pitchette, CEO of BRD signing the SME program agreement together with Director General of EADB. PHOTO | EADB
The East African Development Bank (EADB) has launched a $36 million (approximately Rwf47.2 billion programme) to support the growth of Small and Medium Enterprises (SMEs) in Rwanda. In collaboration with the Development Bank of Rwanda (BRD), Duterimbere Imf Plc, AB Rwanda Plc, and Letshego Rwanda, EADB will provide loan facilities to over 500 SMEs across the country.
These institutions will lend interest friendly money directly to agriculture, transport, commerce, and manufacturing businesses.
Hon Mutesi Rusagara, the state minister in Charge of Resource Mobilization and Public Investment who inaugurated the fund on Friday, July 5, emphasized the critical roles SMEs play in the country’s economic development. “I am enthused by the catalytic approach taken by EADB to support SMEs through various initiatives, such as improving access to finance and providing technical assistance to the four financial institutions in Rwanda.
“Promoting the growth of SMEs is a strategic priority for Rwanda, as they significantly contribute to the Gross Domestic Product (GDP) and serve as a driving force for inclusive economic development,” she stated.
She went ahead and added that SMEs employ over 2.5 million people and have significantly contributed to broadening Rwanda’s tax base.
EADB Director General Vivienne Yeda added, “SMEs remain the backbone of the East African economies, and EADB is committed to sustaining and facilitating their growth through the financial institutions.
“Over the last 50 years, the Bank has been instrumental in stimulating East African economies through its financing strategy, creating a movement that has touched the lives of millions in the region.”
She expressed gratitude to the Government of Rwanda for its initiatives to support SMEs. “We consider this a pivotal and significant step in our partnership and in fostering economic and social development in our communities.”
She emphasized that SMEs face challenges in accessing financial resources, and EADB is committed to directly financing them through various financial institutions and governments.
BRD CEO Pitchette Kampeta Sayinzoga highlighted BRD’s long-standing relationship with EADB and expressed excitement about signing another line of credit.
She stressed that SMEs are the backbone of Rwanda’s economy, particularly in driving private sector growth. As a government-owned bank, BRD is proud to leverage external financing to support Rwandan SMEs. “We all know that the cost of finance is a challenge, and partnering with institutions such as EADB is one of the ways BRD extends long-term, affordable financing to the local private sector,” she said.
DUTERIMBERE IMF Plc’s CEO Ngabonziza Alphonse, extended a heartfelt appreciation for the facility and thanked EADB for the trust. He further emphasized that this collaboration marks a significant milestone in the journey towards empowering underserved communities and promoting financial inclusion.
“The support from EADB is not just a financial lifeline but a vote of confidence in our mission and vision in supporting SMEs and their businesses’. He said.
The East African Development Bank (EADB) was founded in 1967 under the original East African Cooperation Treaty. In 1980, the Bank was re-established under a new Charter, expanding its mandate to promote social and economic development and facilitate regional integration across its member states of Rwanda, Uganda, Kenya, and Tanzania.
The Bank continues to support the growth of small and medium-sized enterprises (SMEs), which are the backbone of East African economies. In addition to SME financing, EADB also funds projects that promote environmental conservation, renewable energy, climate resilience, infrastructure, agriculture, agribusiness, and tourism, among others. (End).