July 17, 2024

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Bank of Kigali Partners with Business Development Fund to Boost SME Financing

Kigali, Rwanda – In a move aimed at supporting the growth of small and medium-sized enterprises (SMEs), the Bank of Kigali has entered into a Partial Credit Guarantee agreement with the Business Development Fund (BDF). This groundbreaking collaboration aims to reduce the collateral required for business loans, making it easier for SMEs to secure the capital they need to expand and thrive.

The agreement, signed by the Bank of Kigali CEO, Diane Karusisi, and BDF CEO, Vincent Munyashyaka, is set to revolutionize the lending landscape in Rwanda. By sharing the risk with lenders, this partnership is expected to unlock the potential of countless SMEs and foster a more inclusive financial environment.

BDF CEO, Vincent Munyashyaka

Traditionally, SMEs have faced significant challenges in accessing affordable financing due to the lack of adequate collateral. With this new agreement, the Bank of Kigali and BDF aim to address this issue by providing partial guarantees for eligible businesses seeking loans.

Dr. Diane Karusisi expressed her optimism about the partnership, stating, “Through this partnership with the Business Development Fund, we are setting a new standard for financial support, ensuring that more Rwandan entrepreneurs have the resources they need to succeed. This agreement is a commitment to boost our appetite for small and medium enterprises.”

The partnership between Bank of Kigali and BDF is expected to have a far-reaching impact on Rwanda’s SME sector. As access to finance becomes more accessible, businesses will be able to invest in expansion, job creation, and innovation, ultimately contributing to the country’s economic growth.

The Bank of Kigali has been at the forefront of initiatives aimed at promoting financial inclusion and supporting SMEs. This partnership with BDF is yet another milestone in their commitment to empowering businesses and driving economic development.

As the agreement comes into effect, both organizations are optimistic about the positive changes it will bring to the business landscape in Rwanda.

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