At least 53 Bank of Kigali (BK) customers have received financial relief following the pandemic shock from COVID-19. The lender has approved and disbursed more than Rwf1.74 billion to SME’s in the form of interest relief and working capital as part of an effort to support the preservation of employment and jobs.

This follows the BK’s partnership with Investing for Employment (IFE), a subsidiary of the German Development Bank, inked September last year.

Under the agreement, Bank of Kigali received 5.2m euros (about Rwf5.8bn), funds that the institution said will be disbursed as grant support to Rwandan SMEs. The primary objective of this fund is to support qualified businesses with regard to maintaining employment following the shock brought about by the Covid-19 pandemic.

Data from the Bank of Kigali indicates that a total of 2,072 employees have so far benefited from the grant.

One of the beneficiaries, Laurent Basabire Managing Director at Nyagatare Rice Company said, "The grant assisted me to retain my staff at a  time they were almost laid off.” He added, "This will enable me to keep the staff through the crisis.”

In the current difficult times, Basabire observes that, "Fellow entrepreneurs should ensure that they employ staff on contract and adhere to RSSB contribution guidelines. Additionally, I would encourage them to keep good relationships with their banks for support in such difficult situations,” he asserts.

Established last year, Investing for Employment (Invest for Jobs) aims at supporting the preservation of employment in small and medium enterprises (SMEs) in Rwanda following the effects of the Covid-19 pandemic.

The initiative availed a total of Euro 10.7M to two Rwandan Financial Institutions in an attempt to reach the masses. Bank of Kigali alone committed to supporting about 200 Small and Medium Enterprises and help maintain over 7,400 jobs in the country.

According to Darius Mukunzi, a Manager in the SME Department, uptake of the grants has largely been driven by learning institutions who account for 15 recipients as well as 22 from the hospitality sector.

Other sectors that have so far benefited from the grant include; agriculture and agribusiness, transport, services, manufacture and healthcare.

Why SMEs

In an earlier interview, the Bank’s Chief Executive Dr. Diane Karusisi, said that the survival of the Rwandan SMEs is paramount for the growth of the economy as well as the attainment of the projected off-farm jobs.

In addition, she said that the intervention was timely, especially due to the fact that SMEs are usually the most affected during economic shocks as they do not have much resources in their reserves.

This, she said, leads SMEs to undertake cost-cutting measures such as laying off staff as they can no longer afford to pay them. Rwanda has a target to create and maintain about 200,000 off-farm jobs per annum according to the 7-year government plan.

What is needed to qualify?

According to Bank of Kigali, beneficiaries are selected from applications sent in by eligible businesses from all over the country. SMEs seeking to benefit from the grant can submit applications at the bank’s head office or any Bank of Kigali branch near you. You are also encouraged to send your application electronically via grant@bk.rw.

The disbursements are in the form of interest relief for clients servicing loans as well as working capital granted to support the payroll of the business.

Consequently, the eligibility process will involve making a case that the beneficiary will protect and maintain quality jobs at their enterprise.

To qualify, businesses will be required to provide the below: