Rwanda sets up $100mn COVID-19 relief fund

Rwanda is setting the stage for a robust post-COVID-19 recovery with the establishment of a $100 million Economic Recovery Fund. Collaborations between sectors and the pivotal role of financial players in jumpstarting economies have been highlighted as essential by experts. CNBC Africa spoke to Marc Holtzman, the Chairman of Bank of Kigali, to delve deeper into Rwanda's economic strategies in the wake of the global pandemic. Holtzman commended President Kagame and the Rwandan leadership for their visionary work, emphasizing the significant impact of the Economic Recovery Fund on revitalizing the economy. Despite the challenges posed by COVID-19, Rwanda demonstrated resilience with a positive GDP growth of 3.6% in the first quarter, a testament to the country's leadership. Looking ahead, Holtzman discussed the potential timeline for full economic recovery, stressing the importance of a standardized testing approach for facilitating travel and the development of effective treatments or vaccines. He underscored Rwanda's unique position as a transparent, corruption-free, and business-friendly hub, anticipating increased interest from pharmaceutical and personal protection companies in setting up operations within the country. This shift is expected to create unforeseen opportunities and drive economic growth. Holtzman also highlighted the significance of enhancing food security and promoting agricultural lending, pointing out the digital transformation accelerating within the banking sector. The move towards online financial transactions is expected to expedite the transition to a cashless society, offering cost-effective solutions and improving competitiveness. While acknowledging the advantages of small and medium enterprises in adapting swiftly to digital platforms, Holtzman emphasized Bank of Kigali's agility and innovation in catering to various sectors, particularly agriculture. The Chairman expressed optimism about increased collaboration across sectors, highlighting the dynamic nature of the banking industry and the need for strategic partnerships to navigate evolving market dynamics. As banking undergoes significant transformations, Holtzman affirmed the importance of staying proactive, agile, and customer-centric to meet the evolving needs of the economy and ensure sustainable growth.