I&M Bank Rwanda in partnership with BPN Rwanda last week organized a two-day workshop to tip owners of Small and Medium Enterprises on closer cooperation with financial institutions to grow and expand their operations.

The training was aimed at improving and increasing engagement of local SME with financial institutions to support their growth and expansion.

"MSMEs are critical to economic growth and social development. I&M Bank believes that empowering our MSME customers through non-financial incentives like this training, will strengthen the backbone of the economy,” said Robin Bairstow, the Chief Executive Officer of I&M Bank Rwanda.

The two firms said that they have over the years witnessed growth of local MSMEs to become renowned brands, sustainable companies, and creating employment opportunities. All the growth has been accompanied by personal growth for the entrepreneurs.

The two institutions who have decades of experience in financial services and business development, provided a thorough support structure for MSMEs facilitate their recovery from the economic impact of the Covid-19 pandemic.

According to Alice Nkulikiyinka, the Country Director of BPN, the workshops are aimed at demonstrating avenues of growth by working with financial institutions.

Nkulikiyinka said that often, they encounter instances whereby SMEs may not have an adequate understanding on how financial institutions work, what they are meant for.

With that, the training sought to close such gaps and creating a mindset of partnership between SMEs and financial institutions.

Delphine Mushashi, the Head of Business Banking at I&M Bank said that the seminar’s purpose was to bridge the gap between MSMEs and financial institutions to understand multiple ways of engagement.

Mushashi explained that the bank is also offering other products to enterprises that were hit hard by the pandemic to enable them to lift their businesses again.

30 local companies were chosen to take part in the training with an aim to facilitate their growth and impact in the respective value chains.

These included firms that have been receiving business development services for the past five to ten years such as, Polybags, Lamane Bakery, Rwanda Clothing, among others.

"At BPN we believe in the power of MSMEs to drive the growth of an economy and build up the communities in which they work. We believe this training, in partnership with I&M Bank, will improve the much-needed mutual trust between financial institutions and MSMEs, and establish the mindset of seeing financial institutions and partners for their business growth”, Nkulikiyinka stated.

The support consists of coaching and a training program that includes business resilience, risk management and capacity development.

From the training, the entrepreneurs also got to understand financial products and services that they can use as well as how to become eligible for them.

Kayitesi Kayitenkore, the Managing Director at Kigali Dermatology Center is one of the beneficiaries of the training.

To her, the training was an eye-opener for learning the importance of statements, profit and loss statements, balance sheet statements, and cash flow management and how they can be of help in boosting her business.

She also noted that the knowledge of aspects such as net present value as well as the internal rate of return of a project will be applied in her clinic following the training to enable her business progress.

Among the key lessons she picked, she said, is that going forward before investing in equipment, she beforehand has insights into aspects such as internal rate of return of the equipment before making an investment decision.

Going forward, I&M Bank and BPN Rwanda will continue training Rwandan MSMEs on how they can upgrade and broaden their interactions with financial Institutions and benefit the various services accessible in the country.

For this, training on ‘Banking for SMEs’ will be offered in the coming days and will tackle topics including, understanding financial institutions and their various products, services and requirements.