Rwanda, through Development Bank of Rwanda (BRD) and German's KfW Development Bank signed a grant agreement worth €15.6 million (approx. Rwf20 billion) to establish a credit facility to support small and medium enterprises in export business.
Dubbed "Export Credit Guarantee Facility(EGCF)", the new partial credit guarantee aims to support employment creation in both growing and export-oriented small and medium-sized enterprises (SMEs) in Rwanda, including women-led companies.
The facility is expected to furnish the banking sector through BRD with tailor-made guaranteed products, incentivizing them to provide higher financing volumes and longer tenures to their clients, and hence enhancing their access to finance and other financial services.
Speaking after the signing ceremony, Uzziel Ndagijimana, Minister of Finance and Economic Planning said that it will allow Rwandan businesses to access new markets and expand their operations, ultimately increasing the country's overall export revenues.
"ECGF will help to create new jobs and foster economic growth by providing a more stable business environment that will support the economic empowerment of the Rwandan people," he added.
Kampeta Sayinzoga, CEO of BRD, noted that this facility aligns with the bank's overarching goal of promoting inclusive growth through strategic interventions in key sectors such as manufacturing, agriculture, and technology- especially SMEs seeking to venture into export markets.
"Through tailored financial solutions and advisory services, BRD aims to empower SMEs with the tools they need to compete internationally and contribute significantly to trade diversification and job creation."
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She added that this facility plays a pivotal role in mitigating risks associated with international trade, by providing credit guarantees to exporters and financial institutions and enable businesses to expand their global reach and seize opportunities in foreign markets.
Furthermore, Dr. Bärbel Kofler, Parliamentary State Secretary of the German Ministry for Economic Cooperation and Development (BMZ), commended the innovative approach of the EGCF as a testimony to the continuing strong ties between Germany and Rwanda and the long-lasting collaboration between KfW and BRD in the area of Financial Systems Development.
She also welcomed the improvement of access to finance for women-led enterprises as a contribution to the new strategy on feminist development policy.
The establishment of the EGCF is a continuation of a long-lasting and successful relationship between BRD and KfW which also introduced the Export Growth Facility (EGF), a vehicle which provides adequate financial services to SMEs through the Rwandan banking sector since many years.
