IFC partners w/ BPR Bank Rwanda to enhance SME financing

The International Finance Corporation (IFC) has announced a financing package of up to $60 million (FRw80.7 billion) to BPR Bank Rwanda Plc. This initiative will expand access to credit for small and medium-sized enterprises (SMEs) in Rwanda, focusing on sectors such as manufacturing, agribusiness, and services.

The package includes $40 million from IFC’s funds and $20 million mobilised from other development finance institutions. BPR Bank Rwanda will allocate at least 25 per cent of these funds to support women-owned SMEs.

IFC’s support will address a significant challenge, as SMEs contribute approximately 55 per cent of Rwanda’s GDP and 60 per cent of employment but face major financial challenges. The financing also includes assistance in developing sector-specific environmental and social processes and training staff in ecological and social (E&S) risk management.

With a seven-year tenor, the IDA20 Private Sector Window Local Currency Facility (LCF) supports the financing, which shields borrowers from currency fluctuations. This partnership continues IFC’s long-standing relationship with KCB Group, BPR’s parent company, dating back to 1998.

Notably, ss of July 31, 2024, IFC has invested $83 million in Rwanda and holds an advisory portfolio of $1.92 million, focusing on improving human capital, developing the private sector, enhancing infrastructure, and driving agricultural growth.

Attribution: IFC

Subediting: M. S. Salama