The Development Bank of Rwanda (BRD) and the Arab Bank for Economic Development in Africa (BADEA) on Wednesday, October 8, signed a $25 million concessional loan (approx. Rwf36 billion) to boost private sector growth. ALSO READ: Rwanda, BADEA discuss collaboration on smart cities and private sector growth The 20-year concessional agreement signed in Kigali will support Small and Medium-sized Enterprises (SMEs) in alignment with Rwanda's National Strategy for Transformation (NST2) and Vision 2050. “We signed another credit line with BADEA. The bank has been a partner of BRD since 2016, and they provide us with financing at reasonably priced rates which we channel to SMEs,” said Pitchette Kampeta Sayinzoga, the Chief Executive Officer of BRD. “It particularly supports youth and women entrepreneurs, as well as the export and manufacturing sectors, enabling BRD to extend affordable credit to Rwanda’s SMEs.” ALSO READ: Rwanda, BADEA sign Rwf11bn deal to construct Nyagatare-Rukomo road Kampeta underscored that Rwanda’s development ambitions, under NST2 and Vision 2050, require substantial financial resources beyond government funding. She noted that strengthening partnerships with development institutions such as BADEA is essential to channel funds through financial intermediaries that can effectively support private sector growth. ALSO READ: BADEA gives $10m for electricity “It is BRD’s role to ensure that such financing mechanisms are in place, and we are privileged to champion this mission,” she said. “Most of these loans are significantly cheaper compared to others available in the market. Typically, financial institutions provide loans with repayment periods of no more than seven years, but this concessional funding allows us to go beyond that, particularly for export and manufacturing projects, which promote sustainable, long-term growth.” ALSO READ: BADEA to increase support to Rwanda Since 1974, BADEA said it has invested approximately $300 million in Rwanda across multiple sectors, including infrastructure, energy, trade, agriculture, digital transformation, and public service delivery. Badea and the Ministry of Finance and Economic Planning also, on Wednesday, signed another $20 million financing agreement (approx. Rwf29 billion) for the expansion of Karenge Water Treatment Plant, which could produce 48,000 cubic metres of water per day, from the current 12,000 cubic metres. “Infrastructure remains at the core of our portfolio, and we are proud to have Rwanda as a partner driving connectivity and inclusive growth, alongside private sector development, energy, agriculture, rural development, and catalytic grants,” said Fahad Aldossari, the Chairman of BADEA’s Board of Directors. ALSO READ: Rwanda, BADEA sign $11m loan agreement Aldossari reaffirmed BADEA’s commitment to supporting Rwanda’s development journey, noting that continuous evaluations have demonstrated the effectiveness and productivity of BADEA’s partnership with the country. “As part of our five-year plan, we assess the impact of all projects we support across Africa. We are pleased that many of our infrastructure projects in Rwanda and other countries have yielded positive results,” he said. “In recent years, and moving forward, our focus is increasingly on the private sector, particularly SMEs to promote inclusion and equitable growth. That is why we are signing another agreement to enhance that inclusion, and we look forward to even stronger collaboration in the future.” ALSO READ: BRD $15m deal with Arab bank to boost lending Aldossari and his delegation are also in Rwanda for BADEA’s annual Board of Directors meeting taking place from October 7-9. He noted that this is the second time the board has convened in Rwanda, following its previous session in 2019, a gesture that reflects the depth of the partnership between BADEA and Rwanda. “We are hosting the Board of Directors meeting here because of the importance of the country and our long-standing partnership with Rwanda.”
