Finance growth and jobs

Enhancing SME Finance through Innovation, Capacity Building and Risk Mitigation

Background

AFR has embarked on a journey to understanding and addressing access to finance constraints for SMEs (including SMEs owned/led or benefitting women) in Rwanda through AFR SME Financing Facility, and the focus of this program is to develop the market system for SME finance resulting in greater number of transactions between the supply side (Financial Services Providers -FSPs) and the demand side (SMEs in productive sectors including those led or owned by women, youth, and other marginalised groups). Specifically, this program is meant support increased financial services provision to SMEs to unlock growth and jobs creation potential and increase women and youth participation in agriculture and agri-processing, light manufacturing, exports, Tourism, ICT, and logistics. The evidence on access to credit and other financing solutions in these sectors indicates they are clearly underserved yet they have the potential to contribute to significant job creation and growth of the Rwandan economy.

The SME Finance Facility seeks to support the financial market system to better serve SMEs in productive sectors leading to business growth, improved profitability, and decent job creation, with a strong emphasis on jobs for women and youth.

Project objective

To support the financial sector to better serve SMEs in productive sectors leading to business growth, improved profitability, and decent job creation, with a strong emphasis on jobs for marginalised groups (including women and youth).

Project overview/Key highlights:

Project name Enhancing SME Finance through Innovation, Capacity Building and Risk Mitigation
Project period 3 years
Key Project targets
  1. Increased supply and efficient use of inclusive SME-centric financial products, services, and catalytic capital to SMEs in productive sectors (agribusiness, export, light manufacturing, logistics, ICT, and Tourism and Hospitality)
  2. A financial sector with sustainable rules, laws, regulations, standards, and norms supporting SME growth in productive sectors (agribusiness, export, light manufacturing, logistics, ICT, and Tourism and Hospitality)
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