Equity Bank Rwanda Plc, in collaboration with USAID Ireme, has embarked on an initiative to support healthcare providers across the country in addressing key challenges in the health sector, such as ensuring reliable, effective, and internationally standardized services. Recognizing that affordable and high-quality healthcare remains a pressing concern, the partnership aims to empower private healthcare facilities to deliver these services while indirectly helping patients overcome common barriers, such as expensive medical treatment, inadequate infrastructure, and limited access to financing. Such issues were highlighted on November 26 during a workshop that brought together private healthcare providers from across Rwanda. ALSO READ: Equity Bank Rwanda launches new healthcare financing products The discussions focused on raising awareness about those products which are designed to help businesses operate in a conducive environment while delivering high-quality services to their clients. As part of its efforts to relieve financial challenges in the health sector, Equity Bank Rwanda has introduced healthcare financing products with reduced interest rates. According to Jean Havugimana, the Head of SME at Equity Bank Rwanda, most of these loans, now available at an annual interest rate of 16 per cent, are lower than the standard rates, which can reach up to 19 per cent annually. Also, the bank has addressed the issue of collateral, a common hurdle for many healthcare providers. “Most of the newly designed products no longer require collateral, making financing more accessible and inclusive”. “We want to ensure that financing is not a barrier but a solution to the challenges faced by healthcare providers. Our products are designed to meet their specific needs quickly and efficiently,” said Jean Havugimana. ALSO READ: Equity Bank, Pact Rwanda team up to empower small-scale miners Among the key offerings highlighted was the “Tang’ubuzima Loan”, which caters to a broad spectrum of beneficiaries, including private hospitals, clinics, pharmacies, laboratories, healthcare wholesalers, and manufacturers. “Invoice Discount” is another key product according to Havugimana, offered by the bank to assist healthcare providers. Typically, insurance companies take two to three months to pay healthcare providers. With this product, the bank advances funds to healthcare providers while they await payments from insurers. Once the insurers pay, the healthcare providers repay the bank. “This prevents disruptions in operations by ensuring providers have funds to purchase supplies and pay salaries. It’s a highly appreciated product that came at the right time,” said Havugimana. Another product is the “Letter of Credit”, which supports healthcare providers when they need to order expensive medical equipment but lack immediate funds. The bank pays the supplier on their behalf, fostering trust between both parties and ensuring the client receives the equipment with all necessary requirements. “The bank can take on a ‘risk appetite’ of up to 20 per cent. This means if a borrower requests Rwf100,000 and has collateral covering at least 80 per cent of the loan, the bank can approve the full amount requested.” Other products highlighted include “Stock Financing”, which helps businesses refill stock when it runs out, and “Asset Financing”, which enables them to purchase expensive equipment such as MRI machines, dental operation tools, maternity machines, and more. These and other products were presented to participants in the healthcare supply chain. ALSO READ: How Equity Bank is unlocking Rwanda’s agri-export potential However, during the event, participants raised concerns, primarily about high interest rates and the lengthy process of loan approvals. Addressing the issue of delays, Havugimana assured that under this program, loan approvals will now be processed within few days, providing timely support for critical healthcare projects, something that will make improvement from the previous extended timelines. However, he urged them to adopt the use of Point of Sale (POS) systems, where customers make payments for purchases, and the system processes those payments. According to Havugimana, this helps the bank maintain deposits, which in turn allows it to generate funds for lending to others. “Anyone who uses Equity Bank’s POS is eligible for loans ranging from Rwf40 million to Rwf70 million without requiring collateral. This offer applies to everyone, not just healthcare providers. We encourage everyone to adopt this system as it also reduces costs associated with printing new currency notes when needed,” he explained.
