The co-operative movement is one of the initiatives that are at the forefront of Rwanda’s economic development agenda today.

Most co-operatives belong to small-and-medium enterprises (SMEs), a reason the Development Bank of Rwanda seeks to support them by providing infrastructure and access to finance.

Recently, the bank extended about Rwf10b credit to some co-operatives. Inkudamahoro Co-operative in Nyabugogo, Kigali’s budding business suburb, secured Rwf5.5b to construct a multipurpose business complex. 

The 4,300-square metre modern complex will be completed this month and will have 600 stalls for members and other SME operators.

Gacuriro-based Adarwa Co-operative, an association of carpenters formerly based at Gakinjiro in Nyarugenge District, secured a Rwf1.1b loan to set up a 167-room commercial building. 

The complex is expected to house over 480 businesses as it seeks to create more and better space for budding entrepreneurs in the city.

Alex Kanyankole, the BRD chief executive officer, said the development bank lends people organised in co-operatives as one of the ways to boost their capacities and enable them undertake large projects.

"It’s not easy for an individual to access a Rwf1b loan since they might not have the required collateral. That’s why we encourage business people to form groups under which they can secure credit to implement their different projects on schedule,” he said.

The commercial buildings of the two co-operatives will house hardware shops, salons, pharmacies and restaurants, among other businesses, most of which are currently operating in unsuitable environments.

He said the projects funded by the bank provide employment opportunities for residents and boost tax collection. 

"It will help propel the country towards the attainment of the second phase of the Economic Development and Poverty Reduction Strategy growth targets,” Kanyankole noted.

Under the credit scheme, the beneficiary co-operatives repay the loans within a period of over seven years, depending on the nature of the project.

Justin Gashaija, the president of Adarwa Co-operative, said when completed, the project will improve their income, noting that presently they are earning peanuts as individual carpenters. 

"However, since we formed the co-operative, we have been able to increase our earnings, thanks to varied capabilities and skills of group members, which have enabled us to undertake big projects, including the recent construction of the Gisozi Road that leads to our work area,” he said.

He said the co-operative has 157 members.

In order to facilitate the local entrepreneurs and other investments, the bank financed nine commercial buildings to a tune of Rwf11.7b last year and seven leasing projects for Rwf1.79b.