BPR Bank Rwanda signed an agreement with the International Finance Corporation (IFC), a member of the World Bank Group, on Friday, September 6.

The partnership involves an investment of over Rwf53 billion to support small and medium-sized enterprises (SMEs) in key sectors such as agriculture, and manufacturing, with 25 per cent of the funds reserved for women-owned businesses.

The funds provided by IFC are not grants but will be used as loans, with BPR Bank expected to disburse the funds within three months.

The loan will be paid back over a seven-year period, with disbursements made in instalments based on the bank’s pipeline of clients.

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During the event, Patience Mutesi, the Managing Director of BPR Bank Rwanda, said: "BPR Bank is thrilled about this partnership. Since its founding in 1975, the bank has always had a strong focus on SMEs. Even after merging with Kenya Commercial Bank (KCB) in 2022 to become both a retail and corporate bank, we remain committed to our SME roots.

"This loan will help us expand our SME portfolio and continue supporting Rwandan businesses, contributing to the country’s vision of a private sector-led economy."

Regarding other SMEs products, the bank offers solutions such as working capital financing and invoice discounting.

"For example, businesses involved in tenders can bring us their invoices, and we provide 70 per cent of the invoice amount to help them operate smoothly. We also offer collateral management, where companies without traditional collateral can use stock or inventory as security for financing," she said.

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The bank provides asset-based financing as well, allowing businesses to finance equipment or vehicles, with 80 per cent of the asset&039;s value covered by the loan.

"For factory expansions or warehouse financing, we provide investment options to help businesses grow. We are committed to walking alongside businesses, offering tailored financial solutions that meet their needs."

Addressing common concerns, Mutesi encouraged businesses not to fear loans. "Many people hesitate because of concerns about high interest rates, but when you factor in inflation, loans are more affordable than they seem. And for those worried about collateral, we work with guarantee schemes like BDF and other partners to provide solutions."

Mary Porter Peschka, the IFC Regional Director for Eastern Africa, emphasised IFC’s commitment to supporting Rwanda’s National Transformation Strategy, which focuses on private sector-led growth.

"BPR is an ideal partner for us. They’re already doing incredible work with SMEs and have a strong commitment to high standards in environmental, social, and credit practices," she said.

Peschka noted that the IFC's loan is aimed at facilitating access to finance for Rwandan SMEs, with a particular focus on agriculture, manufacturing, and women-owned businesses.

"We are excited that BPR has committed to directing 25 per cent of these funds to women entrepreneurs. Supporting women-owned SMEs is absolutely critical to achieving sustainable growth in Rwanda," she added.