IFC, BRD sign private schools deal

A risk-sharing facility worth Frw2.6b to help develop private schools has been signed between the World Bank’s International Finance Corporation (IFC) and the Development Bank of Rwanda (BRD). The move will enable BRD to increase its education portfolio to Frw7 billion up from Frw3.3 billion making it the bank’s third biggest portfolio after agribusiness and tourism. During the signing ceremony that took place at Kigali Serena Hotel yesterday, Jean Philippe Prosper, a senior manager, signed on behalf of IFC while BRD Director General Théogène Turastinze, penned the deal on behalf of the local bank. This partnership gives us the opportunity to expand our support for Rwanda’s education sector, while minimising risk, observed Turastinze. He added: It will enable us increase our portfolio, acquire more expertise in the sector and help our private schools expand their operations. Officiating at the signing ceremony, Finance and Economic Planning Minister James Musoni said the facility was timely since the Government is looking forward to build the country’s economy around knowledge. Enrolment in secondary and higher level education is still low, but we believe the facility will reduce the Government’s burden and complement its efforts towards meeting the MDGs, he noted. The initiative is designed to improve business environment for private schools as well as their educational and financial capacities. IFC will share the risk of bad loans with BRD. The partial guarantee is an initiative of President Paul Kagame who invited IFC to become a partner in development of private schools. We recognise the crucial role that education must play in development by empowering people to live productive lives, and creating opportunities in education is therefore central to our mandate, Prosper said. Prosper said a similar initiative is operational in Kenya and Ghana, adding that $50 million is allocated for African school programme. IFC hopes to support about 5,000 schools and over 100,000 students across the continent in the next three years. This investment will help BRD lower its risk. We hope the approach can be replicated through out Africa, added Guy Ellena, the IFC Director for Health and Education. IFC will also provide advisory services to BRD. Ends

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IFC, BRD sign private schools deal