Rwanda’s Development Bank to double $300m fund to grow key sectors

Rwanda’s Development Bank, also known as BRD, is playing a significant role in driving the economic growth of the country by working closely with various financial institutions to provide funds for key sectors such as agriculture, manufacturing, housing, renewable energy, and supporting the export sector. The Head of Business Development at the Development Bank of Rwanda, Jean Claude Iliboneye, highlighted in an interview with CNBC Africa the pivotal role the bank is playing in enhancing access to affordable financing for the private sector. This strategy is aimed at enabling commercial banks and microfinancial institutions to blend these funds with their own financing to offer final products at affordable interest rates and favorable repayment terms to the end beneficiaries. The bank's investment portfolio currently stands close to $300 million, with a focus on sectors experiencing significant investor interest like manufacturing, agriculture, and energy. Additionally, the bank has been instrumental in providing lower-cost credit facilities to SMEs and mid-sized companies, thereby contributing to the overall reduction of the cost of credit. This initiative has resulted in a positive impact on various sectors, including manufacturing, agriculture, and energy, with a noticeable decline in interest rates for borrowers. Despite the global economic headwinds and funding squeezes highlighted by the IMF, the Development Bank of Rwanda remains committed to maintaining strong partnerships with international development partners to secure additional affordable funding for onward lending activities. Looking ahead, the bank anticipates continued investor appetite in key sectors and projects, with a positive outlook on the country's economic recovery and sustainability, as government projections indicate ongoing growth and development.