I&M Bank (Rwanda) Plc, through its ‘Kataza' programme, has presented a Rwf130 million finance facility collateral-free to Kigali Leather Cluster, aimed at supporting Rwanda’s leather industry, alongside Micro, Small, and Medium Enterprises (MSMEs). The facility, payable within five years, is also available to businesses in tourism and hospitality, creative, and other adjacent sectors targeting youth and women in these respective sectors.

The opportunity shared during an event at the Kigali Serena Hotel on February 5, offers collateral-free financing with no commission or fees, at an interest rate of 9 per cent, a major incentive, making credit more accessible compared to traditional financing options at the market level.

The joint financing programme is incentivised by the Mastercard Foundation, the Rwanda Men’s Resource Centre (RWAMREC), the Rwanda Development Bank (BRD), and the Association of Microfinance Institutions in Rwanda (AMIR).

The &039;Kataza' programme, targeting the leather industry, comes at a moment where leather product manufacturers currently rely on expensive imported finished hides and skins, but the government has pledged to establish a tannery park in Bugesera Special Economic Zone. Investors believe this initiative will be a game-changer, reducing production costs and boosting local manufacturing to an ultimately exportation in consideration.

ALSO READ: Rwandan hides, skins traders decry challenges in EAC market

Speaking at the event, Benjamin Mutimura, CEO at I&M Bank, detailed the financial opportunities available under the programme.

He explained that businesses can access loans ranging from a minimum of Rwf15 million to a maximum of Rwf130 million.

"These funds can be used for ‘working capital facilities’ such as overdrafts, invoice discounts, and tenders, as well as ‘investment capital facilities’ including rental, machinery, and technology upgrades,” he said.

Christian Abijuru, the Head of Business Banking at I&M Bank (Rwanda) Plc, affirmed that "one of the major factors hindering the growth of MSMEs is the lack of information."

He noted that many entrepreneurs are unaware of what is beneficial for them, particularly regarding the financial services available to them.

"We came here to let them know about our products, especially an incentivised 'Kataza' programme. This is an industry that employs numerous youth and women. We want young people to continue securing jobs—jobs that pay well and help them become self-sufficient,” he said.

"We’ve been offering this loan, and today we’re raising awareness about it. We want everyone to know about it. The criteria are straightforward—it simply requires a legitimate business. This interest rate is unmatched by any other bank. We also plan to reach out to other associations,” he added.

ALSO READ: Rwandan dealers in hides and skins seek access to AfCFTA market

The leather sector, which is mostly youth-owned and women-led, has faced significant challenges due to high raw material costs and limited access to financing.

Jean d’Amour Kamayirese, a representative of the Kigali Leather Cluster (KLC), welcomed the funding opportunity, stressing that it will enable local manufacturers to scale up production and compete in both local and international markets in due time.

"Leather product makers didn’t know much about the value of skins, yet we believe that skins are among the most valuable products in Rwanda after minerals. Most of us were unaware of this. KLC members took the initiative to boost its value. Previously, dealers from neighbouring countries would come, select high-quality skins at lower prices, and take them away. This prompted the formation of KLC to boost the value of our skins and compete in the market, which led to the involvement of I&M Bank,” he noted.

Kamayirese explained that KLC, which is nearly two years old, has already seen significant progress. The most notable achievement has been the increased value of skin products made under the ‘Made in Rwanda’ movement. The cluster now has offices, representatives across the country, and a strong partnership with the Ministry of Trade and Industry.

"This programme will greatly support players in this industry. Many of them previously had no access to finance because they lacked collateral, which was a requirement for loans. Most skin product manufacturers don’t own assets to use as collateral. We hope this initiative will help them grow their businesses—from livestock to final consumer products. It is a timely intervention, and we expect it to create more jobs,” he said

Livingstone Nkuusi, Program Lead for MSMEs Finance at the Mastercard Foundation, urged participants to aim for excellence across all MSMEs to strengthen the sector and drive overall development in other industries.

"We want you to uphold integrity, and that’s all. Without it, I don’t see good results. Imagine acquiring a loan without collateral! This is a rare opportunity. I urge you to work with integrity and remain faithful to ensure progress for everyone involved. Especially the youth, take part in this initiative and don’t be afraid of anything,” he said.