Rwanda: EIB and BRD to provide EUR 30 million for business impacted by COVID-19
23 November 2021
New investments by Rwandan companies will benefit from a business financing initiative backed by the Development Bank of Rwanda and the European Investment Bank launched in Kigali earlier today.
Rwandan firms will benefit from EUR 30 million new long-term facility funded by both the European Investment Bank through their East Africa COVID-19 Rapid Response facility and BRD’s own capital. The long-term financing made available under the European Investment Bank’s East Africa COVID-19 Rapid Response will complement BRD efforts in curbing the COVID-19 impact.
“The COVID-19 pandemic has hit Rwandan companies hard and new investment is essential to overcome health, business and trade challenges. The European Investment Bank’s partnership with the Development Bank of Rwanda will unlock essential new investment. I wish to thank the EIB for their firm support to private sector growth, water and medical investment in our country.” said Uzziel Ndagijimana, Minister of Finance and Economic Planning.
CEO Kampeta Sayinzoga remarked that “We are honored to receive this investment from the European Investment Bank to facilitate private sector development especially Small and Medium Enterprises. This illustrates the growing trust that international financial institutions place on BRD. More specifically, this investment will enable BRD to provide long term loans to companies ready to invest directly in Rwanda’s recovery journey. Together, we will capitalize on job creation and value addition.”
The new targeted financing scheme will include support companies in sectors most impacted by the trade, economic and health challenges triggered by COVID-19 and unlock investment to accelerate private sector recovery from the pandemic.
“It is a pleasure to be in Rwanda with Finance Minister Ndagijimana and our long-standing partners at the Development Bank of Rwanda. The EUR 30 million of new financing to be managed by the Development Bank of Rwanda agreed today will help strengthen economic recovery from COVID-19 in Rwanda. Since the start of the COVID-19 pandemic, the European Investment Bank has worked with leading banks and financial institutions in Rwanda and across Africa to ensure that companies can continue to invest, protect jobs, and harness new business opportunities.” said Thomas Östros, European Investment Bank, Vice President.
Finance and Economic Planning Minister, Dr. Uzziel Ndagijimana and BRD CEO Kampeta Sayinzoga welcomed EIB Vice President Thomas Östros on his first official visit to Rwanda and participated in the formal announcement in Kigali.
The EIB Vice President is spending a week in East Africa meeting political, business, and financial leaders and launching the EIB’s new regional hub for East Africa.
Backing private sector recovery with long-term local currency financing
Rwandan companies will be able to access long-term loans in RWF, USD, and EUR, with tenors of up to 10 years, far longer than usually available.
Building on broader EIB financing for COVID recovery in Rwanda
Last month Rwanda was the first country in East Africa to benefit from the EIB’s streamlined EUR 175 million East Africa COVID-19 Response Facility Programme when EUR 95 million of new financing managed by Bank of Kigali Plc and KCB Bank Rwanda was unveiled.
Since 1967, the Development Bank of Rwanda (BRD) Plc. Has been the leading provider of long-term investment loans to projects in the priority sectors of the Rwandan economy including Digital Economy, Exports & Manufacturing, Education, Renewable Energy, Affordable Housing, and Special Projects.
New investments by companies across Rwanda most impacted by COVID-19 will be supported with EUR 95 million of new financing backed by the European Investment Bank (EIB). The funds will be managed by Bank of Kigali (BK) and KCB Bank Rwanda.
The EIB has agreed to provide EUR 8 million to support investment by small and medium sized private sector companies in Rwanda. This is the second new small business lending programme between the European Investment Bank and I&M Bank Rwanda in seven years.