In a bid to bolster employment opportunities and empower small and medium-sized enterprises (SMEs) in Rwanda, the Government of Rwanda, the Development Bank of Rwanda (BRD), and KfW, representing the Federal Republic of Germany, sealed a pivotal grant agreement.
The agreement, named the “Export Credit Guarantee Facility” (EGCF), aims to foster the growth of both emerging and export-oriented SMEs in Rwanda, with a specific focus on women-led enterprises.
The signing ceremony held at MINECOFIN saw the attendance of esteemed dignitaries, including Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana, BRD CEO Ms. Kampeta Sayinzoga, and Dr. Bärbel Kofler, the Parliamentary State Secretary of the German Federal Ministry of Economic Cooperation and Development (BMZ).
This financial arrangement, valued at EUR 15.6 million (approx. RWF 20 billion), represents the German Financial Cooperation facilitated by KfW on behalf of the German Government.
The EGCF aims to bolster Rwanda’s banking sector, channeled through BRD, by providing tailor-made guarantee products.
These incentives encourage increased financing volumes and extended loan tenures, thereby expanding SMEs’ access to financial services.
The EGCF initiative stems from the enduring partnership between BRD and KfW, which previously introduced the Export Growth Facility (EGF).
The EGF has significantly supported SMEs in accessing financial services through Rwanda’s banking sector.
Minister Ndagijimana expressed his anticipation that the EGCF will facilitate Rwandan businesses in exploring new markets and scaling their operations, ultimately boosting the nation’s overall export revenues.
He emphasized that the EGCF’s role in job creation and economic growth will foster a stable business environment conducive to the economic empowerment of Rwandans.
Kampeta Sayinzoga, BRD’s CEO, underscored the bank’s commitment to sustainable economic development, particularly through initiatives that promote inclusive growth.
The EGCF’s strategic alignment with BRD’s objectives aims to support SMEs in sectors like manufacturing, agriculture, and technology, empowering them to venture into global markets.
Dr. Bärbel Kofler lauded the EGCF’s innovative approach as a testament to the enduring collaboration between Germany and Rwanda.
She highlighted the facility’s support for women-led enterprises, aligning with Germany’s feminist development policy, marking a crucial stride in strengthening financial systems and boosting SMEs’ access to finance.