The official signing ceremony marked the beginning of this strategic initiative, which seeks to provide financial backing for SMEs in key sectors of the economy contributing to decent job creation and inclusive green growth.
Through this collaboration, the Embassy of Sweden in Kigali will cover 70% of the SME loan portfolio, ensuring that qualifying SMEs can access loans with flexible terms ranging from US$5,000 to US$350,000 for a period of 3 to 60 months. This 8-year coverage period will allow eligible businesses to scale their operations, contribute to economic development, and create employment opportunities.
Eligible sectors include Agriculture, Light manufacturing, Logistics, Renewable energy, Water and waste management, Export oriented SMEs, Tourism and Hospitality, Affordable Housing development and green building materials, Information and Communication Technology.
Commenting on the development; Dr. Diane Karusisi, the CEO of the Bank of Kigali, expressed excitement about this partnership and described it as a game-changer for SMEs in Rwanda.
'By providing a safety net that allows us to extend more flexible and accessible financing, we are enabling businesses to innovate, expand, and compete on a larger scale. At Bank of Kigali, we believe that empowering SMEs is crucial for driving inclusive growth, and this guarantee is a powerful step towards a more dynamic and resilient Rwandan economy,' she said.
Access to Finance Rwanda (AFR), as the strategic partner of the facility, will work closely with BK by providing technical assistance, supporting the optimal utilisation of the guarantee, and monitoring impact while capturing learnings. Their involvement will ensure that the facility achieves its objectives and that best practices are integrated throughout the implementation of the initiative.
Jean Bosco Iyacu, CEO of Access to Finance Rwanda, added that this partnership complements Bank of Kigali's ongoing efforts to channel more capital into the SME sector.
'BK is a long-standing partner in AFR's journey to drive innovation and support key sectors of the economy and rural areas. We are delighted to continue this relationship through this first SME-Centric Portfolio Guarantee Scheme. This initiative addresses the collateral constraints mainly faced by youth and women owned SMEs across Rwanda, and we anticipate it will play a crucial role in unlocking growth and creating dignified employment opportunities,' he noted.
Martina Fors Mohlin, Head of Development Cooperation at the Embassy of Sweden, noted, 'Our partnership with Bank of Kigali aligns with our mission to promote economic inclusive sustainable development in Rwanda. By providing the guarantee instrument, we strive to create a positive impact on job creation, gender equality and youth entrepreneurship.'
About Bank of Kigali Plc
Bank of Kigali, established in 1966, is Rwanda's largest financial institution. As a leading commercial bank, it provides a wide range of services, including digital banking, to over 500,000 customers through an extensive branch network and digital platforms. BK is committed to fostering innovation and economic growth through targeted financial solutions for individuals, SMEs, and corporations.
Swedish development cooperation with Rwanda
The Swedish development cooperation with Rwanda is governed by a strategy for the period 2020 - 2024. The strategy focuses on human rights, democracy and gender equality; environment and climate; and more inclusive economic growth. In addition, support is provided for building up domestic research capacity in Rwanda.
With this strategy, Sweden will increase its commitment to contribute to an environmentally sustainable and including growth. The strategy also contributes to an inclusive economic development and growth, improved conditions for and increased access to productive employment and decent work, corporate social responsibility, and free and fair trade, including in rural areas.
About Access to Finance Rwanda (AFR)
AFR is a Rwandan not for Profit Company , established in 2010 to promote financial inclusion and financial sector development in Rwanda. AFR supports the removal of systemic barriers that hinder access and usage of financial services by low-income people, particularly the unserved segments including young people, women, MSMEs, Persons with Disabilities (PwDs), refugees and the informal sector.
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