The Development Bank of Rwanda (BRD) is going to conduct a campaign aiming to improve the awareness of the Export Growth Fund (EGF) and raise uptake of the fund among exporters.
The fund which is managed by BRD started in 2015. It is supported by the government of Rwanda through Ministry of Trade and Industry (MINICOM) and National Agricultural Export Development Board (NAEB), the German Development Bank (KFW) with Rwf 12 billion to support financing through credit/loans, grants, guarantee and technical assistance.
According to the BRD Chief Executive Officer, Eric Rutabana, the EGF is through four windows which include the investment catalyst facility, the matching grant facility, credit insurance guarantee and the industrial start up fund.
The investment catalyst facility encourages private sector investment in export-oriented production in order to increase availability of goods and services for export where the cost of financing is capped at 14 per cent as interest rate applicable on loans to exporters.
The matching Grant facility provides assistance based on specific needs of firms looking to enter the regional and overseas markets. Grants are offered or matched to the tune of USD 100,000.
The credit insurance Guarantee offers specific transaction related guarantees to commercial banks to provide finance to exporters for transactions up to 80 per cent of value of exports of agriculture products whereas the industrial start up fund encourages private sector investment to start up projects that recapture domestic markets and promote export related activities.
Speaking at the press conference marking the start of the campaign, Eric Rutabana said that “the export Growth Fund aims at addressing key challenges faced by exporters such as limited access to finance, weak supply chains for processors, inadequate export infrastructure and a small exporter base mainly due to inadequate technical skills.”
“One of BRD’s focus is to position the Export Growth Fund within the Rwandan economy to facilitate ease access to financing at a favorable interest rate. Export rate is a key priority for the government and as such various measures have been taken to boost Rwanda’s export trade”, he added.
BRD partners with other commercial banks ( Participating Financial Institutions) like Equity Bank, I&M Bank, Cogebanque, Bank of Kigali and BPR part of Atlas Mara to offer export credit to exporters. Interested exporters can access the fund by visiting any of these banks.