BPR Bank Rwanda is exploring financing solutions to help fuel importers navigate rising costs and supply disruptions linked to the ongoing Middle East conflict, as concerns grow over the impact of global oil market volatility on Rwanda's economy.

The discussions took place on Friday, June 5, during the inaugural edition of BPR Powertalk, a quarterly forum that brought together fuel importers, energy developers and policymakers at Kigali Convention Centre to examine ways of strengthening the country's energy security.

ALSO READ: Transport fares remain unchanged as diesel price increases

Trade finance tools at the centre of solutions

Vincent Ngirikiringo, BPR Bank&039;s Chief Finance Officer, said the lender chose the fuel sector for the first edition of the forum because of its importance to transport, industry and the broader economy.

"We convened with players in the fuel import sector to explore how we can help them address the existing challenges, particularly in financing, so that those whose import volumes have been declining can be supported to import more," he said.

According to Ngirikiringo, the bank is assessing trade finance instruments that could ease pressure on importers' working capital and support smoother fuel deliveries.

ALSO READ: BPR Bank Rwanda Plc Wins "Bank of the Year – Rwanda” 2025

One of the solutions under consideration is the use of letters of credit, which allow importers to receive cargoes while deferring payment.

"Because we are trusted by banks in the countries from which they import, this helps reduce the burden on importers and gives them confidence that their products will reach them safely," he said.

ALSO READ: BPR Bank expects sustained growth after 35% profit jump driven by lending expansion

Strengthening storage and supply resilience

The bank is also considering financing storage infrastructure to strengthen fuel reserves and improve supply resilience.

Xavier Mugisha Shema, the Executive Director for Commercial Businesses at BPR Bank Rwanda, said the discussions highlighted both the challenges and opportunities within the oil and gas value chain.

"Our focus is not only on financing transactions but also on enabling trade through structured solutions that bring together key partners, including collateral managers, insurers, logistics providers and technology platforms, to improve transparency, security and efficiency across the value chain," he said.

ALSO READ: Agribusiness customers hail BPR’s impact at appreciation event

Shema added that the bank is developing tailored trade finance solutions to support businesses while promoting sound governance, risk management and sustainable growth.

Importers warn of rising capital pressure

The forum heard concerns from fuel importers, who said global market disruptions have increased financing needs and exposed gaps in Rwanda&039;s fuel storage capacity.

Eric Mutaganda, the Chairperson of ASSIMPER, the association of petroleum products importers, said rising international prices have significantly increased the capital required to maintain import volumes.

"If the price has gone up by more than five times, that means you need to increase your capital at least at the same level to be able to continue importing the same quantity," he said.

Mutaganda said expanding storage facilities would allow importers and government to build larger reserves and better manage supply shocks during periods of market volatility.

Government support and fuel subsidies have helped stabilise the market, he added, although reimbursement arrangements continue to put pressure on importers' cash flow.

Inflation pressure and broader economic impact

Thierry Kalisa, the Chief Economist at the National Bank of Rwanda (BNR), said the Middle East conflict – involving warrying parties including the USA and Iran -- has mainly affected Rwanda through inflation, particularly in fuel, transport and imported goods such as fertilisers and food.

"Before the war, the barrel of petrol was around $60 to $70. From March up to now, it has been fluctuating a lot, but it's between $100 and $110 now," he said on Friday.

Kalisa noted that the central bank has revised Rwanda's 2026 economic growth forecast from 7.2 per cent to 6.8 per cent, although the economy remains resilient, supported by stronger exports, a narrower trade deficit and relative exchange rate stability.

Inflation rose to 13 per cent in April, prompting the central bank to raise its policy rate by 100 basis points to 8.25 per cent.

"But inflation is much higher than expected, and we need to tackle this issue because if inflation stays high for long, at the end of the day, it affects everyone," Kalisa said.

The central bank expects inflation to average 13.9 per cent this year before easing to 7.4 per cent in 2027, assuming supply chains improve and agricultural production remains strong.

Domestic energy alternatives in focus

Beyond financing, participants also examined long-term solutions aimed at reducing Rwanda's dependence on imported fuels.

Klaus Schick, the CNG Project Development Director at Gasmeth, outlined progress on the company's compressed natural gas project on Lake Kivu, which is expected to provide an alternative source of energy for transport, cooking and power generation.

The project, being developed under a 25-year concession, is about 50 per cent through detailed engineering, with major equipment already ordered and under manufacturing.

"We are planning to finalise the project in the first quarter of 2028," Schick said.

He noted that compressed natural gas could replace fuelwood, charcoal, diesel and petrol in several applications while also helping stabilise gas concentrations in Lake Kivu.