IFC has announced a financing package of up to USD 60 million in the equivalent of local currency funds to BPR Bank Rwanda. The financial package, which comprises up to USD 40 million, from IFC aims to drive growth and development in Rwanda by widening access to finance for SMEs in the country.
The financing will allow BPR Bank Rwanda Plc, Rwanda’s third largest bank by asset size, to expand access to credit to SMEs in the country. This is especially for those in sectors that bolster economic diversification, such manufacturing, agribusiness, and services. At least 25% of the funds will be specifically designated to support women-owned SMEs in Rwanda. With a tenor of seven years, this financing package is supported by the IDA20 Private Sector Window Local Currency Facility (LCF), which extends long-term loans in local currency to protect borrowers against currency fluctuations in countries with underdeveloped capital markets.
In addition, IFC will assist the bank develop and incorporate sector-specific environmental and social processes into its credit review procedures and roll out environmental and social (E&S) risk management training to all staff members. This is anticipated to help bolster the bank’s risk management practices and encourage sustainable development.
“This partnership with IFC is a testament to our unwavering commitment to supporting the growth of SMEs in Rwanda. With this $40 million facility, we will enhance our ability to provide flexible and affordable financing solutions that will empower businesses to scale, innovate, and drive economic development,” said BPR Bank Managing Director, Patience Mutesi.
Through its focus on supporting women-owned SMEs, IFC’s loan to BPR Bank Rwanda has the potential to increase the employment of women in Rwanda and reduce the country’s current gender employment gap. As compared with men, women in Rwanda face lower average employment rates of 11 percentage points, according to UN Women.
IFC’s partnership with BPR Bank Rwanda builds on a longstanding relationship with the bank’s parent company, KCB Group, which spans back to 1998. Over the past 26 years, IFC has committed several loan facilities and provided several advisory services to the group. As of 31 July 2024, IFC had a USD 83 million investment portfolio and an advisory portfolio of USD 1.92 million in Rwanda.