AFR and the Government of Denmark partner with BPR Bank Rwanda to Support MSMEs with USD 5.6 Million Portfolio Credit Guarantee Facility
Kigali, Rwanda – December 3, 2024 – BPR Bank launched a landmark partnership with the Government of Denmark through the Investment Fund for Developing Countries (IFU) and in partnership with Access to Finance Rwanda. The initiative introduces a USD 5.6 million guarantee facility, enabling BPR Bank to offer loans with up to 70% guarantee coverage. This scheme, the first of its kind by IFU in Africa will significantly reduce collateral requirements and improve access to financing for Rwanda’s Micro, Small, and Medium Enterprises (MSMEs), in productive sectors of the economy such as agriculture, tourism and hospitality, renewable energy, ICT, logistics, and businesses owned by women and youth.
Delegations’ representatives discussing during the launch of the facility
The official signing of this partnership held at BPR Bank’s headquarters, featured officials representing partner institutions, including Patience Mutesi, Managing Director of BPR Bank, Jean Bosco Iyacu, CEO of Access to Finance Rwanda (AFR), and Mr. Ole Thonke, Deputy Secretary of State for Development Policy at the Ministry of Foreign Affairs of Denmark.
Patience Mutesi spoke of the transformative potential of the facility, saying, “With up to 70% guarantee coverage, we’re making it easier for local businesses to access financing, foster growth, and create jobs, thus contributing to sustainable economic development across Rwanda.”
AFR, as the strategic partner of the facility, will work closely with BPR Bank by providing technical assistance, supporting the optimal utilization of the guarantee, and monitoring impact while capturing learnings. The involvement of AFR will ensure that the facility achieves its developmental objectives and that best practices are integrated throughout the implementation of the initiative.
Patience Mutesi, BRP Managing Director and Jean Bosco Iyacu, AFR CEO, having a chat at the event
Jean Bosco Iyacu, AFR CEO echoed the significance of the partnership, particularly for priority sectors like agriculture and tourism and hospitality, stating, “Bank credit uptake is still low in the country with only 10% of the adult population borrowing from banks. This initiative will contribute to the removal of the existing constraints and facilitate access to responsible finance by MSMEs, hence empowering entrepreneurs to scale their businesses and create more dignified and fulfilling jobs.”
Mr. Ole Thonke highlighted the partnership between Rwanda and Denmark underlining “This collaboration shows the power of the Public – Private Sector Partnerships to advance Rwanda’s development goals. By supporting MSMEs, we are investing in the country’s future and creating opportunities for local communities.”
Ole Thonke, Deputy Secretary of State for Development Policy at the Ministry of Foreign Affairs of Denmark
This partnership marks a significant step in ongoing efforts by all institutions to foster inclusive economic growth and support Rwanda’s MSMEs. With the USD 5.6 million guarantee facility, local entrepreneurs now have access to the financial resources needed to scale their businesses, create jobs, and contribute to Rwanda’s economic transformation.
