The International Finance Corporation (IFC), a World Bank lending arm to the private sector, and DEG – a member of Germany’s KfW Banking Group – have jointly announced plans to invest in Rwanda’s tourism sector.

The financial institutions on Thursday signed an agreement with Tourism Promotion Services (TPS) Rwanda, owners of the Serena Hotels in Rwanda, which will see them invest a whopping $12 million to develop tourism in the country.

IFC Executive Vice President and CEO, Lars Thunell, who was this week in Rwanda for a two-day visit, said: "IFC’s investment in Tourism Promotion Services reflects our commitment to supporting Rwanda’s nascent tourism industry.”

He was speaking at the signing ceremony at Kigali Serena Hotel.

He said that IFC’s participation will extend support to ‘TPS’ regional energy efficiency programme and a wellness programme that includes helping employees better understand and deal with HIV/Aids.’

Tourism Promotion Services Rwanda a couple of months ago signed a 30-year lease agreement with the government to manage and operate both the Kigali Serena and the Lake Kivu Serena hotels.

The company will use the funds to finance the lease, rehabilitate the two hotels, as well as expand the Kigali Serena.

‘Demand for hotel accommodation in Rwanda is growing rapidly due to increased foreign aid and a better business environment, as well as tourist attractions and the country’s popularity as a meeting and conference destination,’ according to a statement from the World Bank.

TPS Rwanda is a subsidiary of the Aga Khan Fund for Economic Development, which operates 28 Serena hotels, resorts, and safari lodges through its subsidiaries across the world.

IFC activities include fostering sustainable economic growth in developing countries by financing private sector investment, mobilising private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments.

DEG is regarded as one of the largest European development finance institutions and has been involved in financing and structuring the investments of private companies in developing and emerging market countries for a period spanning more than 40 years.

In a related development, IFC separately announced on Thursday that Banque Commercial du Rwanda (BCR) is the first bank in Rwanda to join IFC’s Global Trade Finance Programme.

‘IFC will issue guarantees of up to $2 million against the bank’s underlying trade transactions, covering payment risk and helping increase Rwanda’s global trade volumes,’ the World Bank said in a communiqué.

The transaction is IFC’s third in Rwanda in less than a year.
"Working with IFC will greatly increase our capacity to facilitate trade between Rwanda and other countries, promoting the private sector and contributing more to economic development,” said David Kuwana, BCR Managing Director, said during .

"We see this as a first step in a collaborative partnership with IFC,” Kuwana said at a ceremony, which was also held at Kigali Serena Hotel.

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