Development Bank of Rwanda (BRD) and the East African Development Bank (EADB) have signed a $15 million (about Rwf11 billion) credit line to support the private sector.

The credit facility will enable BRD to provide long-term loans to new and existing medium, small and micro-enterprises in various economic sectors in the country.

Speaking after the signing ceremony, BRD chief executive Alex Kanyankole commended the role played by EADB in strengthening the financing capacity of development finance institutions in the East African region.

"We are proud to constantly benefit from EADB’s commitment in supporting BRD’s capacity to avail affordable loans to the private sector operating in the priority sectors of the economy. This has catalysed emergence of small and medium enterprises that are crucial in job creation and value addition,” Kanyankole told The New Times.

Toward EDPRS II goals

The move is in line with the bank’s mandate, which focuses on financing investments aligned with the second phase of Economic Development and Poverty Eradication Strategy (EDPRS II) mainly under the priority sectors such as housing projects, export promotion, energy, infrastructural development, education and agriculture.

"We will continue focusing on those projects with economic impact on our people, including the SMEs and other sectors like agriculture, manufacturing, housing and construction,” Kanyankole added.

EADB’s director-general Vivienne Yeda commended the "excellent strides” undertaken by BRD in helping to accelerate the Rwanda’s economic growth.

"We are proud to partner with BRD and satisfied with the results achieved. The Rwandan economy has registered tremendous growth, and this is testament to BRD’s good prudential management in ensuring proper use of the funds,” said Yeda.

Since 2009, EADB has extended a total of $15 million in credit lines to BRD ($5 and $10 million allocated in 2009 and 2013, respectively).

The support has boosted the development bank’s lending capacity to embark on an aggressive resource in its drive to finance its refocused mandate as outlined in the new strategic plan (2015-2018).

EADB was re-established under its own Charter in 1980 during which the Bank’s role and mandate were reviewed and its operational scope expanded to include a broad range of financial services in the member states with an overriding objective of strengthening socio-economic development and regional integration.

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