Rwanda through the Development Bank of Rwanda (BRD) and Local Administrative Entities Development Agency (LODA) received a grant of €44 million (approximately Rwf50 billion) aimed at supporting social protection programmes and boosting exports in Small and Medium Enterprises (SMEs).

The financing deal was signed Monday on November 29 by Rwanda’s Minister for Finance and Economic Planning, Uzziel Ndagijimana, and the Regional Manager of Kreditanstalt für Wiederaufbau (KfW), Bettina Tewinkel.

Also present was the German envoy in Rwanda among others.

According to the agreement, €36 million will be allocated to social protection programmes through LODA under Vision Umurenge Programme (VUP), and €8, 66 million will go towards the expansion of the long-term refinancing line for on-lending to export-oriented SMEs.

Speaking after the signing, Ndagijimana commended Germany for the impactful bilateral cooperation as well as grants.

"Protecting and supporting vulnerable households and small and medium enterprises to overcome the impact of Covid-19 especially on their livelihoods is critical for an inclusive economic recovery.” He said

He added that the support will complement Government efforts to ensure that as the economy turns around, no one is left behind.

Thomas Kurz, the German envoy to Rwanda commended government for an effective response towards addressing the effects of the pandemic, committing his country’s continued support.

He added that Germany through KfW will continue to work hand in hand with the Rwandan partners in the social and economic recovery.

According to BRD, the previous fund of € 13.5 million 34 projects has benefited from it through 5 partner Public Financial Institutions (PFIs), with total loans approved amounting to approximately EUR 12 million.

These approved loans were distributed in different sectors including textile, essential oils, horticulture, coffee, pharmaceuticals, tea, food products, and minerals.

Commenting on the way forward with the additional fund Vincent Ngirikiringo the Chief Finance Officer at BRD said that it will empower exporting SMEs to exploit the recent re-opening of foreign markets.

He added that the Export Growth Fund replenishment will allow BRD to provide affordable additional capital to a unique opportunity to enable local partner PFIs to serve to export SMEs, thereby creating employment opportunities for more skilled workers.