Officials from the Bank of Kigali (BK) and the European Investment Bank (EIB), on March 15, visited New Kigali Designers and Outfitters, a garment factory located in Gasabo district, Gisozi sector.
The factory expanded its business with a loan from EIB facilitated by BK, thanks to their partnership supporting small and medium entreprises (SMEs) with credit lines.
Chantal Umurerwa, the Managing Director of Kigali Designers and Outfitters, recounted the journey of her business, which began in 1998 as a small venture with only two tailors and two machines.
Initially focusing on women's garments, they transitioned into a fashion company in 1995 with a campaign promoting homemade brands.
The business grew steadily, acquiring its own premises in 2008 and pioneering the introduction of embroidery machines and T-shirt production in Rwanda.
Umurerwa said that embracing the Made in Rwanda campaign brought government incentives and facilitated the factory’s growth, leading to the employment of 300 individuals, predominantly women.
Empowering women was a core value for the factory, with the belief that supporting them impacts families and the nation.
"Most women, when they leave our garment factory, they also manage to start their own small tailoring units," said Umurerwa, adding that financial support from BK and EIB enabled the acquisition of equipment and training for employees.
She revealed that the company plans to expand further into an industrial area, aiming to employ 350 individuals, primarily women, continuing their mission of empowerment and contributing to national development.
Darius Mukunzi, Head of SME at BK, discussed the partnership between the bank and EIB, highlighting their collaboration on various transactions providing credit lines to support SMEs.
They recently signed a deal of €100 million (approx. Rwf140 billion) for sustainable agriculture, to bolster farmers and agricultural enterprises across Rwanda, fortifying them against the economic, social, and business ramifications of climate change.
Mukunzi said their partnership has supported approximately 300 to 400 SMEs in total.
"The long-term funds obtained from EIB help address the challenge of mismatched deposit and loan terms in Rwanda,” he added. "BK provides ongoing support to SMEs through working capital financing, retail products for staff, and facilitating personal journeys.”
The EIB has supported transformational investment across Rwanda since 1977 and signed over EUR 400 million for private and public investment. This includes support for telecom, clean energy, water, transport, health and business investment and support for climate and business investment with the BRD and BK.
Thomas Ostros, the Vice President of the bank, currently on a three-day visit to Rwanda, emphasized the strong partnership between them and BK, which they aim to deepen further.
With the new deal signed on March 14, advisory services will also be provided to assist BK in integrating environmental considerations into its financial operations, demonstrating a commitment to greening the financial system.
"That's the future of all countries, including Rwanda,” said Ostros. "The financial system must be greened and be better at fostering climate-related investments."
While previous partnerships were more diverse, Ostros said the new agreement focuses on agriculture, emphasising its importance for inducing productivity-enhancing investments crucial for development.
He highlighted the extensive duration of EIB’s partnership with BK, spanning 25 years, and expressed optimism about its future.