I&M Bank Rwanda and Proparco have signed a Memorandum of Understanding (MoU) to expand lending to small and medium-sized businesses (SMEs) in Rwanda, in a deal that puts €25 million (approximately Rwf42.78 billion) of guarantee funding on the table for entrepreneurs who have long struggled to access bank loans.

The signing ceremony took place at the European Union residence in Kacyiru on Wednesday, May 13.

Proparco, a French development finance institution, will provide two portfolio guarantees aimed at helping I&M Bank Rwanda extend financing to businesses that often struggle to meet collateral requirements.

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Targeting SMEs, women and youth-led enterprises

The first guarantee will support the growth of the bank’s general SME lending portfolio, while the second will target women and youth-led businesses, startups, and enterprises operating in agriculture, healthcare, education and green sectors.

The guarantees are expected to benefit from the EU-backed IMPACT programme, a risk-sharing mechanism developed by the European Union and Proparco to support local financial institutions and improve access to finance for micro, small and medium enterprises (MSMEs).

Banks say SMEs remain central to growth

Speaking at the signing ceremony, Benjamin Mutimura, Chief Executive Officer of I&M Bank Rwanda, said SMEs remain central to both the bank’s strategy and Rwanda’s broader economic transformation agenda.

"At I&M Bank, small and medium enterprises are not just a segment. They are central to our growth strategy and central to Rwanda&039;s economic transformation,” Mutimura said.

"One of the most significant barriers faced by small and medium enterprises is access to collateral. Through this initiative, we are able to unlock good projects without asking for additional collaterals. Those businesses with limited assets can now be able to create jobs and scale at their full potential.”

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Mutimura also linked the partnership to the bank’s recently launched Berwa programme, which focuses on supporting women entrepreneurs with loans of up to Rwf400 million, including collateral-free financing.

"We want our business ladies to be smart in business and to walk their head high and this has attracted huge traffic to our branch. We have a dedicated center to support women in business,” he said.

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The MoU signing came at the close of the Global Gateway Investment Roadshow held in Kigali on May 12 and 13, ahead of the Africa CEO Forum 2026. The event brought together investors, government officials and companies to discuss investment opportunities in sectors including energy, agriculture, healthcare, technology and finance.

Proparco: focus on underserved sectors

Françoise Lombard, Chief Executive Officer of Proparco, said the guarantees were designed to improve access to finance for underserved businesses and sectors with strong development impact.

"These guarantees are designed to strengthen access to finance for MSMEs in Rwanda, particularly for segments that remain underserved, such as women entrepreneurs and young people,” Lombard said.

"They will also support highly impactful sectors such as agriculture, health, education and green activities, sectors that are essential for inclusive and sustainable development and that are at the heart of I&M Bank’s strategy in the country.”

Renewed engagement with Rwanda’s financial sector

Lombard also said the agreement marked a renewed engagement by Proparco with Rwanda’s local financial sector.

"This partnership also marks an important step for Proparco as we are re-engaging with local financial sector in Rwanda, which is, of course, a key driver of development and inclusion,” she said.

She added that, together with AFD and Expertise France, Proparco is helping implement the priorities of bilateral cooperation agreed on by France’s President, Emmanuel Macron and Rwanda’s President, Paul Kagame in 2021, particularly in health, education, climate resilience and innovation.

A model of Team Europe–Rwanda cooperation

France’s Ambassador to Rwanda, Aurélie Royet-Gounin, welcomed the partnership and described it as an example of the cooperation between Team Europe and Rwanda.

"It’s really a model of what we can achieve when we stand together, Team Europe and Team Rwanda,” Royet-Gounin said, referring to the speed at which the agreement was concluded.

RDB commends the move, growing investor confidence in the country

Juliana Kangeli Muganza, Deputy Chief Executive of Rwanda Development Board, said the agreement reflected growing investor confidence in Rwanda and the region.

"We have great ideas. We have markets. We have young people that are passionate and hungry to do work, but oftentimes the resources are constrained,” Muganza said.

"Partnerships like this are inspiring because it’s showing us that there’s money that’s going to follow the good ideas that already exist.”

She added that Rwanda remains committed to partnerships that drive investment and development.

"In Rwanda, we believe partnership creates strength and gets us to the last mile,” she said.