A US$ 250 million fund has been launched to further support economic recovery through increased access to finance for businesses affected by Covid-19 pandemic.

The government is doing everything possible for the economy of the country and Rwandans to not be very much affected by effects of the pandemic, Prime Minister, Edouard Ngirente said as he launched the second phase of the Economic Recovery Fund (ERF2) in Kigali on Wednesday, May 18.

The recovery fund will also provide loans to businesses which experienced the negative impact of the pandemic on their operations, proven by at least 20 percent reduction in the last 12 months.

It will also support Made in Rwanda priority sectors in manufacturing; construction material, agro processing, textiles and light manufacturing.

Minister of Finance and Economic planning Uzziel Ndagijimana speaks at the launch of the second phase of the recovery fund in Kigali on May 18. 

This comes after the public outcry on the persistent rise of prices of goods and commodities, which Ngirente assured they were doing everything possible to solve.

"Although it is evident that inflation is persistent, the government is following it up and taking different intervention measures for Rwandans to not keep being affected. Inflation is not something we can stop as a government, but we are trying to reduce the burden for consumers,” Ngirente said.

The fund‘s second phase follows the Rwf100 billion fund launched in June 2020, which benefited more than 3,000 small businesses.

"The first phase of the fund highly contributed to the recovery of our economy after it had been affected by the Covid-19 pandemic. I want to emphasise that the government is doing everything possible for the economy of the country and Rwandans to not be very much affected,” Ngirente said.

According to a report from the Ministry of Finance and Economic Planning, Rwf73 billion of the aforementioned amount was used in loan refinancing of 151 Hotels and MICE, 69 learning institutions, and 55 Public transport operators.

The Economic Recovery Fund was created to support businesses highly impacted by the Covid-19 crisis so they could survive, restart production, and safeguard employment.

Initially, it was also expected to facilitate domestic production of essential goods such as masks, gloves, sanitizers, disinfectants, and others that may be deemed necessary during and post COVID-19 period.

Participants follow Prime Minister's remarks.The recovery fund will also provide loans to businesses which experienced the negative impact of the pandemic on their operations