BPR Bank Rwanda and the International Finance Corporation, have inked a landmark agreement to inject Rwf53 billion (approximately $45 million) into Rwanda’s small and medium-sized enterprises (SMEs).
The strategic partnership, signed on September 6, marks a significant push to drive economic growth through enhanced access to finance for key sectors, including agriculture, manufacturing, and women-owned businesses.
The investment comes at a crucial time for Rwanda’s private sector, which is navigating the twin challenges of inflation and the need for capital to scale operations. The funds, structured as loans, are slated for disbursement within three months, with a repayment window of seven years. Disbursements will be based on BPR Bank’s pipeline of clients, ensuring that funds are allocated efficiently to businesses ready to expand their footprint in the market.
Managing Director of BPR Bank Rwanda, Patience Mutesi, emphasized the bank’s commitment to SMEs, a focus that has remained strong since its founding in 1975 and continued after its merger with Kenya Commercial Bank (KCB) in 2021.
“This partnership aligns with our strategy of fostering growth in Rwanda’s SME sector. We offer collateral management services, including using stock or inventory as security, and asset-based financing for equipment or vehicles, with up to 80% of the asset’s value covered by the loan,” Mutesi said.
IFC’s Regional Director for Eastern Africa, Mary Porter Peschka, underscored the organization’s dedication to supporting Rwanda’s National Transformation Strategy, which focuses on private sector-led growth.
“BPR is an ideal partner for us. They are already doing incredible work with SMEs and maintain high standards in environmental, social, and credit practices,” she noted. The IFC loan aims to enhance access to finance for SMEs in Rwanda, particularly in agriculture, manufacturing, and businesses led by women, which will receive 30 percent of the funding,” Peschka said.
The partnership represents a significant step toward achieving sustainable growth in Rwanda, with both organizations expressing confidence that the funds will help SMEs overcome barriers to expansion. “Supporting women-owned SMEs is critical to achieving sustainable growth in Rwanda,” Peschka said.
BPR Bank plans to use the funds to expand its SME portfolio, offering tailored financial solutions to meet the diverse needs of Rwandan businesses.
“We are committed to walking alongside businesses, offering tailored financial solutions that meet their needs,” Mutesi added, encouraging enterprises not to shy away from loans due to concerns about high-interest rates or collateral. The bank collaborates with guarantee schemes like BDF and other partners to provide viable options.
This collaboration underscores the potential of strategic partnerships to drive economic transformation, bolstering the capacity of Rwanda’s private sector and contributing to the country’s vision of a private sector-led economy.
