BRD looks to increase financing to SMES

Share it

The Development Bank of Rwanda

The Development Bank of Rwanda (BRD) is looking at increasing financing to Small and Medium Enterprises-SMEs, a move it believes will contribute to the development of the economy mainly in creating jobs.

MANZI Benjamin, the Director of Investments in Development Bank of Rwanda (BRD) says that through collaboration with the Business Development Fund (BDF) which offers guarantees thus mitigating the major challenge for startups projects will ensure that more credit is accessed by the SMEs.

“The bank has strengthened its position of being at the forefront of financing SMEs of all kinds most especially agro-processing, manufacturing and services..,” he said adding that the bank has identified   key projects for financing in different sectors.

“Under the industries and services sector, our financing is to boost the growth of industries so as to enhance production for exports and greatly reducing on the country’s imports,”

He adds, “In supporting this sector, we are also contributing to better service delivery through promoting the tourism service sector like building of hotels and setting up of service centered business”.

Manzi also there efforts also  to finance  commercial farming as opposed to subsistence farming which leads to provision of raw materials for agro-related industries in the country while  water and energy sectors will have  green energy related projects.

To boost further more penetration of financing projects that are rural based, the banks is refinancing portfolios of microfinance institutions and rendering technical assistance to boost their operations.

“Therefore through refinancing MFIs, BRD’s outreach to SME’s is greatly reached because of the nature of MFI operations and lending. Our partnership with MFIs increases access to finance to all Rwandans,” he added.

Experts believe that with such move, the banking sector’s lending portfolio is likely to  increase and  boost  loans to private sector which are critical to the growth of the sector the country is banking on to  leapfrog its economy to middle income.

For example, according to Central Bank, loans to the private sector which increased by 7.2 percent from FRW 843.9 end December 2013 to FRW 904.5 end June 2014 with the banks most liquid assets increasing by 28.1 percent standing at FRW 297.3 billion in the forts half of the year from FRW 229.0 billion end December 2013 due to banks’ cash in vault (+5.3 percent, outstanding repos +191.5 percent and outstanding T-bills +2.6 percent.

Tags:

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

0 Comments

You can be the first one to leave a comment.

Leave a Comment

 




 

 
 

Warning: Illegal string offset 'id' in /home/wp_ts2em7/rwandaeye.com/wp-content/themes/manifesto/footer.php on line 4

Warning: Illegal string offset 'id' in /home/wp_ts2em7/rwandaeye.com/wp-content/themes/manifesto/footer.php on line 4

Warning: Illegal string offset 'id' in /home/wp_ts2em7/rwandaeye.com/wp-content/themes/manifesto/footer.php on line 4