PSF signs US$1 m grant with AFDB

KICUKIRO - The African Development Bank (AfDB) donated US$ 1m (Approx Rwf. 550million) to the Private Sector Federation (PSF) to boost capacity building for business operators and other employees in the private sector. The deal was signed yesterday at PSF offices in Gikondo, Kigali City, between Emmanuel Hategeka, the PSF Secretary General and Diko Jacob Mukete, the Resident Representative of the Continental Bank. During the function, Mukete said that AfDB supports Rwanda because of her good leadership that has designed a clear development vision through its Economic Development and Poverty Reduction Strategy (EDPRS).

Tuesday, December 02, 2008
Secretary General of the Private sector Federation Emmanuel Hategeka signing MOU with Resident Representative ADB Diko Mukete at Psf Offices Yesterday. (Photo/G.Barya).

KICUKIRO - The African Development Bank (AfDB) donated US$ 1m (Approx Rwf. 550million) to the Private Sector Federation (PSF) to boost capacity building for business operators and other employees in the private sector.

The deal was signed yesterday at PSF offices in Gikondo, Kigali City, between Emmanuel Hategeka, the PSF Secretary General and Diko Jacob Mukete, the Resident Representative of the Continental Bank.

During the function, Mukete said that AfDB supports Rwanda because of her good leadership that has designed a clear development vision through its Economic Development and Poverty Reduction Strategy (EDPRS).

"We think Rwanda has what it takes to become a service hub for the region,” Mukete said after signing the agreement.

He added that more financial packages to Rwanda are in the pipeline, explaining that the recently instituted Rwanda Development Board (RDB) is currently negotiating with the bank to provide more funds to help build the private sector capacities.

The RDB was created by merging seven government agencies with the aim, among others, of creating a better business environment in the country.

Hategeka said the grant was signed following negotiations that started two years ago and he called for more support from the bank in order to build a strong private sector in the country.

"We hope this is just a beginning for long term partnership,” Hategeka said of the grant.

He insisted that local Rwandan business people need intense training to enable them to profitably manage their operations and generate more revenues.

This is why the money from ADB will be taken to local levels through the federation’s Business Development Services (BDS) centres to implement training of local entrepreneurs.

"They need to know how to manage their businesses,” he said.

Though the grant was provided by the AfDB, the money was sourced from the Japanese Government through its Ministry of Finance.

The Representative of the Japan International Cooperation Agency (JICA), Murakami Hiroshi, who was present at the signing of the deal, said he believed developing the private sector was the engine for the country’s development.

The RPSF has a condition to make use of the money within the next four years, Hategeka revealed.

Ends