Local Small and Medium Enterprises (SMEs) are expected to benefit from a financial boost of Rwf24.3 billion that the Development Bank of Rwanda has secured. The development follows a loan agreement between the Development Bank of Rwanda (BRD) and Agence Francaise de Developpement (AFD) that was signed on February 18. The credit facility allows BRD to access funding for a period of 13 years which will enable the bank to provide loans to businesses with an extended maturity of up to 15 years at a lower interest rate, according to officials. Kampeta Sayinzoga, Chief Executive Officer of BRD, said that this is a bold step taken by both institutions to strengthen access to finance for SMEs as a core objective of Rwanda’s strategy, NST1 (National Strategy of Transformation). “There are some businesses that waited for the pandemic to ease so that they can invest in different projects, now we are seeing more business players going to banks for long-term loans. So, this money will help us meet the demand of the private sector,” she said. The outlined priority sectors that will be financed include; agriculture, manufacturing and exports, energy, affordable housing and infrastructure, education, and digital economy, among others. Arthur Germond, Country Director of AFD said that this is yet another concrete result of the revitalization of Rwanda-France cooperation. Uzziel Ndagijimana, Minister for Finance, said that the line of credit will be accompanied by technical support to the bank in key functional areas such as investment strategy, processes and organization reviewing. As well as fundraising function improvement, climate strategy definition, environmental and social responsibility, and impact measure’s function development. Under the partnership with AFD, Rwanda continues to implement different projects including the introduction of Mechatronics department in IPRC-Tumba, a memorandum of understanding signed with Smart Africa Secretariat to promote digital solutions. In June 2021, both parties also made a deal of $84.22 million in loans and grants to electrify nearly 77,470 rural households in south Rwanda. Boost for French language The French development agency also signed a grant agreement worth €5 million (approximately Rwf5.7 billion) with the Ministry of Finance and Economic Planning to teach the French language. It will be used to train teachers to teach French in Primary, Secondary Schools Technical and Vocational Education and Training (TVET) and also to buy necessary teaching materials. Germond said: “We are so happy to support the enhancement of learning the French language. It will help us to deepen our involvement in the education and employment sectors which can be the trademark of our presence here.” The Ambassador of France to Rwanda, Antoine Anfré, said that this will contribute to Rwanda’s ambition of establishing itself as a regional hub because there are many neighbouring countries that have French as a common language. He added that it will also come through in terms of cultural heritage, noting that he was impressed that there is actually a bigger number of Rwandans that know the language.
