PRESS RELEASE: Export Growth Fund Ambuka Competition is here!!

On 14 July 2023, the Development Bank of Rwanda (BRD) and the Ministry of Trade and Industry (MINICOM) launched the EGF Ambuka Competition. The competition's aim is to stimulate and support the growth of export-oriented businesses in Rwanda by addressing common challenges faced by exporters. The competition is open to Exporters, Export Focused Investors, Startups (pilot sectors) if their purpose is export-oriented, all sectors that are actively involved in export activities, new borrowers, and young entrepreneurs in business lines that promote industrialization for exports and reduce imports. One of the specialities of this competition is that there is an added advantage for youth and women. The competition has different criteria that applicants should follow, where the main ones are: The company has to be registered in Rwanda or operating in Rwanda. Having already made exports or intending to do exports. Having a comprehensive business plan reflecting the targeted increase in exports, projections of expected production, exports return, expected developmental impacts and profits for the project and/or the company. Commit to compliance with environmental regulations. The 100 exporter winners of this competition will benefit from an interest subsidy from 6.5% up to 10% per year for investment and working capital facilities for a loan not exceeding 1.5 Bn Frw. A matching grant that covers from 50% up to 100% of the planned cost with a maximum of 100,000 USD. There are different special conditions that exporters should consider while applying for this competition and some of them are: Promotional interest subsidy of up to 10% shall not exceed Frw 150 million per applicant. Any additional subsidy above this amount will attract the current interest subsidy of 6.5%. Applicants requesting loans below Frw 50 million shall not be eligible. Any applicant can benefit from both the matching grant and the interest subsidy. Competition Windows and Benefits: The Export Growth Fund (EGF) offers different windows to cater to the specific needs of participants. Each window provides unique benefits to support export-related initiatives: Investment Catalyst Facility: This window encourages private sector investment in export-oriented production to increase availability of goods and services for export by providing them loans. In this window BRD provides a direct lending of with an interest subsidy of 6.5% with a maximum financing amount of Rwf1.5 Billion. Winners from this competition will get a promotional interest subsidy of 10% with a maximum financing amounting to Frw 1.5 billion. This window will target exporters and export focused investors and the startups are encouraged if their purpose is export orientation. Matching Grant Facility: Firms entering the export market can access this window to reduce costs related to adjusting to standards and technical requirements in target markets. These costs include certification requirements, barcoding, labeling, packaging design, branding, trade fairs, market research, intellectual property registration and transportation costs for the first shipments if the exporter is accessing export markets for the first time. Under this competition, eligible exporters shall receive a grant of up to Frw 100 million covering 100% of the total project costs. Export Credit Guarantee Facility: This window offers transaction-related guarantees to commercial banks, securing export finance transactions up to 80% of their value. The facility enhances the financial capabilities of exporters by providing credit insurances for pre-shipment and post-shipment finance, to level up to 80% of the required working capital. This facility is currently open to the Horticulture sector only. Industrial Start-Up Facility: This window encourages private sector investments in start-up projects that recapture domestic markets and promote export-related activities. It provides loans with an interest subsidy of 6.5% to borrowers establishing new export-oriented businesses or those with direct import substitution effects. Winners shall get a promotional interest subsidy of 10% with a maximum financing amount of FRW 1.5 billion per project. The EGF Ambuka competition is a two-month-long online application running from 17 July to 17 September 2023. The submission will be made via egf.brd.rw. After two months of the application, the exporters with the best projects will be pre-selected, and the winner will be awarded thereafter.

News

PRESS RELEASE: Export Growth Fund Ambuka Competition is here!!