Rwandan Small and Medium Enterprises (SMEs) have received a significant boost with the launch of a $36 million (Rwf 47 billion) fund by The East African Development Bank (EADB). This fund is designed to meet the financing needs of up to 500 Rwandan SMEs across various sectors, including agriculture, transport, commerce, and manufacturing. The fund will be distributed through local financial institutions such as the Development Bank of Rwanda (BRD) PLC (BRD), Duterimbere Imf Plc, AB Rwanda PLC, and Letshego Rwanda.
The initiative comes at a crucial time when many Rwandan SMEs are still recovering from the economic impacts of the Covid-19 pandemic. While some businesses were forced to close, others that remained operational have been struggling with significant financing challenges. Local banks have traditionally been hesitant to lend to sectors like agriculture, manufacturing, and mining due to perceived risks.
Vivienne Yeda , Director General of EADB, expressed gratitude to the Rwandan government for its proactive support of SMEs. “This partnership marks a significant step towards fostering economic and social development in our communities,” she said. Yeda emphasized the importance of SMEs to the East African economies and assured that EADB is committed to sustaining and facilitating their growth through financial institutions and government channels.
State Minister for Resource Mobilization and Public Investment, Mutesi Rusagara, underscored the strategic importance of promoting SME growth in Rwanda. “SMEs significantly contribute to the Gross Domestic Product (GDP) and play a crucial role in fostering inclusive economic development,” she noted. Rusagara highlighted that SMEs employ over 2.5 million people and have the potential to expand Rwanda’s tax base and create employment opportunities.
The launch event featured a multi-stakeholder dialogue aimed at supporting SMEs in adopting sustainable practices. Key attendees included Rashwan Hammady y, CEO of Retail Banking & Financial Inclusion at CIB, Yasser Abdella. MBA, Deputy CEO of Retail Banking, and other notable figures.
Kampeta Pitchette Sayinzoga , CEO of BRD, expressed excitement about the new credit line agreement with EADB. “SMEs are vital for Rwanda’s private sector growth, and BRD is committed to leveraging external funding to provide sustainable, affordable financing to local SMEs,” she said. Sayinzoga acknowledged the financing challenges SMEs face and emphasized that this partnership with EADB is a strategic move to address these challenges and extend long-term financial support to the local private sector.
Ngabonziza Alphonse , CEO of Duterimbere IMF PLC Bank, voiced optimism about the potential of the fund to enhance access to finance for their clients. “This fund will provide much-needed financial support to SMEs, helping them grow and overcome one of the biggest challenges they face—access to finance,” he stated.
About EADB and its Impact for Rwandan SMEs
The East African Development Bank (EADB) was founded in 1967 under the original East African Cooperation Treaty and re-established in 1980 with an expanded mandate to promote social and economic development and facilitate regional integration across its member states of Rwanda, Uganda, Kenya, and Tanzania. EADB supports the growth of SMEs, which are the backbone of East African economies, and funds projects that promote environmental conservation, renewable energy, climate resilience, infrastructure, agriculture, agribusiness, and tourism.
For more information on eligibility and application procedures for the SME funding, please visit EADB’s Rwanda offices located in Kacyiru, Glory House Building, Ground Floor, or contact them via telephone at +250786873112.
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