The African Development Bank (AfDB) and the Development Bank of Rwanda (BRD) have signed a $8 million (approximately Rwf52 billion) Line of Credit (LoC) to support the bank’s lending to the agriculture, agro-processing, telecommunication, education and tourism infrastructure sectors in Rwanda.
The signing took place at the AfDB national office in Rwanda, and was chaired by Negatu Makonnen AfDB Resident Representative in Rwanda, and Jack N. Kayonga, BRD Chief Executive Officer.
BRD is Rwanda’s leading development bank specializing in Small and Medium Enterprises (SMEs) and as part of its 2010–2014 strategy, its key growth areas include priority the abov.
In complement to the credit, a technical assistance package of up to US $730,800 provided to BRD by the Fund for African Private Sector Assistance (FAPA) and other partners according to a press statement.
The grant aims to improve BRD’s staff skills, information technology systems, appraisal systems, treasury and financial management, operations, credit risk management and internal controls.
Jack N. Kayonga, BRD CEO, affirmed that “the agreement illustrated the vitality of the cooperation which would enable BRD to be engaged in a program of reinforcement of its private sector and SMEs operations in Rwanda.
” Emmanuel Murangayisa, BRD Director of Finance, added that the grant will contribute to optimizing BRD management capacities, by which the Bank will be placed at a constant and favourable level of performance.”
“The AfDB line of credit and the FAPA technical assistance are aligned with AfDB’s private sector operational priorities for long-term financing to support private sector development especially where long-term financing is scarce.
This program will enable BRD to respond effectively to the challenges of developing and promoting the private sector and SME development Rwanda,” said by Negatu Makonnen AfDB Resident Representative in Rwanda.
Through FAPA funds, AfDB has initiated a broad program for institutional capacity building to support the African Development Finance Institutions such as the West African Development Bank (BOAD).
Others are the East and South African Development Bank (PTA Bank), the East African Development Bank (EADB), the Bank Congolaise de l’Habitat (BCH) and finally Shelter